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Star Health and Allied Insurance Company Ltd. is the market leader in health insurance for individuals, with a market share of 31.3% in gross direct premium income in the retail sector. Going forward, market share dominance is expected to continue, led by a focus on product innovation, competitive pricing and strong distribution pressure.
Furthermore, a higher share of retail (~88-89%), competitive prices and a strong distribution drive to stimulate growth.
The largest agency channel with ~5.3 lakh agents is a pillar to boost ~77% of business. Focus on the agency channel combined with strategic partnerships with digital ecosystem partners to enable healthy growth in premium.
Star Health has consistently achieved a combined ratio of 93-95% in FY16-20. Covid-19 led to higher claims resulting in loss of underwriting, which we believe will normalize from FY23E.
Strong adoption and collaboration with hospital will limit claims, while focus on opex increases profitability and return ratios going forward
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This post Star Health – Brightest STAR in Health Insurance Sky: ICICI Direct Start Coverage
was original published at “https://www.bloombergquint.com/research-reports/star-health-brightest-star-in-health-insurance-sky-icici-direct-initiates-coverage”