Healthcare's pricing opacity demands regulation: Star Health MD & CEO

Star Health sees 50% surge in demand after GST waiver on health policies as it targets ₹30,000 crore premium by FY28 and calls for a healthcare regulator

Chennai-based Star Health Insurance has seen a 50 per cent growth in customer demand since the government removed the goods and services tax (GST) on health insurance in September last year. The company’s Managing Director and Chief Executive Officer Anand Roy discusses its growth road map, the need for a healthcare regulator, and concerns about claims ratios in an exclusive virtual interaction with Shine Jacob. Edited excerpts:

 

In 2023-24, you set an ambitious growth target of achieving a gross written premium of about ₹30,000 crore by 2027-28 (FY28). Where do you stand now, and what is your guidance for 2026-27 (FY27)? 

In 2025-26, we expect to close the year with almost ₹20,000 crore in top-line revenue. We believe our bottom line will also improve over last year. We had set an aspirational target of doubling our top line to ₹30,000 crore and trebling our profits to ₹2,500 crore under International Financial Reporting Standards (IFRS) measures. The Insurance Regulatory and Development Authority of India has recently issued a draft circular on IFRS implementation from April 1, which we welcome. It’s a step in the right direction. We are on track to reach our goals. 

We believe insurance penetration should increase, and the regulator has set a target of insurance for all by 2047. In FY27, we will continue focusing on retail-side penetration while keeping FY28 targets in sight. Currently, we have more than 850,000 agents and aim to reach 1 million agents within the next two years.

 

In September, the government exempted GST on all individual health insurance policies, providing a boost for the industry. How did this impact Star Health? 

The GST exemption was a significant boost for both the industry and Star Health. We’ve been promoting individual health insurance for 20 years, and now the government has recognised its importance.

 

Since the announcement, we’ve seen at least a 50 per cent increase in new customer demand. Existing customers are also showing higher engagement: retention rates have increased by 2 per cent, and renewals with upgrades have risen by nearly 25 per cent. These are encouraging signs of enhanced consumer protection.

 

Your recent report highlights that your retail health portfolio includes around 10 million women customers. Can you share the key findings? 

Women now account for 21 per cent of all new retail health policies as primary policyholders. Preventive health checkups among women have grown 127 per cent year-on-year, with uptake among women aged 40 and above increasing 143 per cent. These trends indicate growing awareness of early detection and routine health monitoring.

 

Our Star Women Care Insurance Policy is now the company’s third-largest-selling product. It offers tailor-made coverage for women across all age groups. Nearly one-third of policyholders are women under 30. At the industry level, around 70 per cent of policies are sold through agents, but in our data, 83 per cent of women and 80 per cent of total policies are sold through agents.

 

Claims ratios remain a concern for the industry. Do you think further regulation is needed? 

India’s health inflation is 14–15 per cent, among the highest globally, making health insurance essential as out-of-pocket expenses become harder to bear. The GST waiver is encouraging more people to buy coverage.

 

While health insurance is tightly regulated, healthcare itself is not. This creates challenges: the sector ranges from small nursing homes to high-end tertiary hospitals, and insurance companies face difficulty dealing with such diversity. There are no laid-down treatment protocols or transparent pricing. Ideally, a healthcare regulator should exist, though we’ll have to see if the government acts. Meanwhile, the industry is engaging with healthcare associations to address these challenges for consumers.

 

How are you improving data security? 

We are investing heavily in data security, privacy, and information technology (IT) platforms, including multi-factor authentication and encryption. Star Health is likely the largest investor in IT and data security in the industry, spending over ₹200 crore annually — one of the highest investments across the sector.