Star Health is aiming for a premium collection of Rs 10,000 for the current fiscal year

The independent health insurer Star Health and Allied Insurance Co Ltd, which grew by around 45 percent in the current fiscal year compared to the previous year, is looking for a premium collection of 10,000 rupees in the current fiscal year, company officials said.

Between April and November 2020, the insurer wrote a direct gross premium of around 5,600 rupees. Almost 43 lakh policies were sold versus 30 lakh policies in the same period in the previous fiscal year.

In the past fiscal year we had a total of Rs.6,865 billion in business. This year we are on track to hit a premium target of nearly Rs 10,000 billion, the company’s executive director Anand Roy told PTI.

The company has a market share of nearly 15 percent across the health insurance segment, including all general insurance companies.

In the segment of health insurance for private customers, which is the focus of the company, the company has a market share of more than 30 percent, said Roy.

After the pandemic, the demand for health insurance has increased tremendously in the past few months, and as the market leader, we have captured that demand. Our year-over-year growth this fiscal year has been nearly 45 percent, he said.

The Chennai-based insurance company saw growth of 30 to 35 percent last year. The growth rate was always 1.5 to 2 times the industry growth rate.

Increased demand for health insurance due to the awareness created by the COVID-19 pandemic has given the company an extra boost, Roy added.

The growth comes from all regions and is not led by metropolises or cities. There is also demand from all age groups.

The growth has been pretty extensive and has been led by the large agency of 4 lakh agents that we have across the country. Our large distribution networks, the great variety of products, the good networks of the hospitals as well as the awareness created by the COVID-19 pandemic have contributed to a high growth, explained Roy.

The company plans to add at least one lakh agent every year.

In the current financial year, the company has made particular efforts to increase its presence in rural areas.

The rural market is something we are aggressively pursuing because we believe that a lot of awareness about health insurance has been created in the rural market. There is a great need for health insurance in these areas. We are developing some special products for the rural markets, he said.

The company would take a digital first approach to expanding its presence in rural areas, he added.

In June of this year, the IRDAI insurance regulator had issued guidelines for two standard COVID-19 health insurance policies – Corona Rakshak and Corona Kavach.

So far, Roy has said the company has sold five lakh policies. By the end of November, the health insurer had settled nearly 90,000 claims worth 910 billion rupees related to COVID-19. This includes claims from Corona Rakshak and Kawach.

(Only the headline and image of this report may have been updated by Business Standard staff. The rest of the content is automatically generated from a syndicated feed.)

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