According to reports from Business Standard, Star Health is implementing an aggressive expansion strategy to capture a larger share of India's health insurance market in smaller cities. The company currently derives 50% of its business from Tier-II and Tier-III cities and aims to increase this to 60-65% within the next three years. This strategic focus comes as only 60 million Indians have retail health insurance against a population of 1.5 billion, representing significant untapped potential in the sector.
As reported by Business Standard, the company has launched a new product that is 20% cheaper than regular market products, offering consumers approximately 40% total benefit when combined with the reduced GST rate. The new product is expected to generate ₹500 crore in income from smaller cities and contribute 10% of new business for the current financial year. Star Health achieved a gross written premium (GWP) of ₹20,400 crore in the previous financial year and has set a target of ₹24,000 crore for the current year, representing a growth rate of less than 20%.
According to Business Standard, the removal of GST on health insurance in September has significantly boosted the sector's performance. Star Health's business has doubled since the GST waiver, with the company experiencing at least 2% improvement in volume at a base of 20 million customers. The company maintains its market share above 30% and has set a long-term goal of achieving the ₹30,000 crore mark by FY28.
As reported by Business Standard, Star Health has made significant investments in artificial intelligence and machine learning for claim processing services. Currently, 25% of claims are processed through AI models without human intervention, with the company targeting 50% AI-processed claims by the end of the current financial year. The company invests approximately ₹250 crore annually in technology and information security, positioning itself as a leader in cybersecurity practices following recent data breach incidents in the industry.
According to Business Standard, following data breach incidents, Star Health has substantially increased its cybersecurity investments. The company now invests ₹250 crore annually in technology and information security-related matters, among the highest in the industry. Implemented security measures include encryption of data at all levels, multi-factor authentication for platform access, and best-in-class security practices to maintain leadership in information security practices.
