Standalone health insurer Star Health has engaged Boston Consulting Group (BCG) to identify potential business opportunities in the life and general insurance sectors, anticipating the government’s approval of the composite licence framework.
“As far as composite business opportunities are concerned, we are very seriously evaluating our adjacencies. We have engaged BCG to develop a strategy for us,” Anand Roy, MD & CEO, Star Health, told analysts during the earnings call. “We are looking at an overall strategy and various profit pools available within the life insurance and general insurance businesses.”
In February, a parliamentary panel headed by BJP leader Jayant Sinha suggested that the government introduce a provision for ‘composite licensing’ for insurance companies and make necessary amendments to the Insurance Act, 1938. A composite licence will allow insurance companies to offer both life and general insurance products, including health, under one entity.
Roy said while the regulation has been under discussion for almost two years now, it is expected to be tabled in Parliament soon. While the company is not aware of the timeline of implementation, it wants to be prepared when the regulation becomes a reality.
Star Health is India’s largest retail health insurance company with a 42% market share in the standalone health insurance sector and a 4.8% market share in the general insurance industry. Its gross written premium (GWP) in the previous fiscal stood at ₹15,254 crore. In Q1FY25, its GWP grew 18% year-on-year to ₹3,476 crore.
Aditya Biyani, chief strategy and investor relations officer, said the company is exploring new protection plans in both the life and non-life segments and will leverage its proprietary distribution for cross-selling and upselling these products to existing customers.