Star Health Eyes Diversification Amid Regulatory Clarity

Kolkata, Apr 17 (PTI) Star Health and Allied Insurance Company Ltd on Friday said it remains open to exploring diversification opportunities if a composite licence framework emerges.

The composite licence framework is a regulatory reform allowing insurance companies to operate multiple lines of business -- life, general and health -- under a single entity.

"There was a discussion around the composite licence for some time, but that option is not available right now in the new insurance bill. It has gone to the back burner," Star Health MD and CEO Anand Roy told PTI.

Parliament in December last year passed a bill to raise FDI in the insurance sector to 100 per cent from the current 74 per cent, which is expected to increase insurance penetration, lower premiums, and boost job creation.

Roy said the new insurance bill does not include provisions for a composite licence, effectively putting such plans on hold for now.

However, the CEO underlined that the company's long-term stance on diversification remains unchanged.

"Our stand has always been that we would like to explore other opportunities, but since this is not finding space in the current framework, nothing immediate is planned," he said.

Roy added that the company would take a call based on future regulatory developments. "We will wait and see if the regulator comes up with any specific instructions," he said.

Roy said the company's immediate focus will remain on strengthening its core health insurance business, supported by robust demand and rising awareness.

The insurer is expanding its footprint in West Bengal, where it reported Gross Written Premium (GWP) of around Rs 1,100 crore in FY26, up 10 per cent year-on-year, with over 14.7 lakh lives covered.


It settled more than 92,700 claims worth about Rs 460 crore in the state during the first nine months of FY'26.

He said Star Health's market share in West Bengal is 36 per cent, while nationally it is between 31-32 per cent, and the contribution of the eastern region to health insurance industry revenue is lowest at around 10 per cent.

Highlighting its product strategy, Roy said the company offers coverage across a wide customer base, including senior citizens and individuals with pre-existing conditions such as cancer, diabetes and cardiac ailments.

"We are not only catering to healthy individuals but also to those with existing conditions. Even cancer survivors or long-term diabetes patients can access our policies," he said.

The company's 'Senior Citizen Red Carpet' policy continues to see strong traction among elderly customers, he claimed.

Roy said around 85 per cent of claims are settled through cashless mode - higher than the industry average - supported by a network of over 15,000 hospitals across India, including more than 600 in West Bengal.

The company is also scaling up digital and wellness offerings such as telemedicine, preventive health check-ups and home healthcare services, while its CSR initiative 'Arogya Seva Kendra' provides free primary healthcare through 32 centres, including two in the state. Another 50 such centres are planned for FY27. 

At the national level, Star Health reported GWP of about Rs 20,000 crore in FY26, up 11 per cent year-on-year, maintaining its leadership in the retail health insurance segment.

Meanwhile, Roy said industry-wide issues between insurers and hospitals are being addressed through multiple joint working groups set up under the guidance of the Insurance Regulatory and Development Authority of India (IRDAI).

These groups, comprising both insurers and hospital representatives, are working to streamline processes, reduce friction in claims settlement and improve overall customer experience, particularly during hospitalisation.