Chennai-based Star Health Insurance has witnessed a significant surge in demand following the removal of Goods and Service Tax (GST) for health insurance in September last year. According to Anand Roy, MD & CEO of Star Health Insurance Company Ltd, the standalone health insurance provider has experienced 50 per cent growth in new customer demand since October of last year. As reported by The Hindu BusinessLine, Roy emphasized that the government's decision to bring GST to zero has equated health insurance to essential goods, creating what he believes is a permanent structural change that will continue to spur further demand.
The GST reduction has not only attracted new customers but has also improved retention rates among existing policyholders. According to Roy's statements to mediapersons, renewal retention has improved from 86 to 88 per cent in the same period. Customers are utilizing the benefits for higher coverage rather than reducing premiums, with the average new policy sum insured rising 25 per cent from ₹9 lakh to ₹11 lakh. As reported by The Hindu BusinessLine, over 90 per cent of the company's customers are first-time buyers, with customer switching not being part of their strategy.
In terms of business growth, Star Health Insurance reported revenue of approximately ₹17,800 crore for the current fiscal year (FY26) as of January 2026. According to Roy's statements, the company is confident of reaching its ₹20,000 crore target for FY26. Looking ahead, the company expects a topline of ₹30,000 crore by FY28. As reported by The Hindu BusinessLine, the company's focus remains on increasing insurance penetration and securing new-to-insurance customers, especially in Tier 2 and Tier 3 geographies.
Despite the positive demand trends, Star Health Insurance faces pricing pressures due to healthcare inflation. According to Roy's comments to mediapersons, around 65 per cent of the company's products saw price hikes last year due to healthcare inflation. He noted that while insurance is a tightly regulated industry, the healthcare industry appears unregulated in terms of pricing. As reported by The Hindu BusinessLine, the company remains mindful of higher increases while keeping products affordable to increase insurance penetration.
Roy was speaking at the launch of Arogya Seva Kendras (ASK), free-of-cost primary healthcare centres as part of the company's CSR initiative. According to The Hindu BusinessLine, the ASK clinics are being implemented in partnership with Piramal Swasthya and will help screen non-communicable diseases and provide medicines for an expected 10 lakh beneficiaries in 32 centres across nine States. This initiative demonstrates the company's commitment to expanding healthcare access beyond its core insurance business.
