The Covid-19 outbreak and subsequent lockdown led to many general insurers’ business stagnating. Core segments such as motor insurance have been pushed into the background as vehicle sales plummeted.
Amidst this pandemic, however, there is one general insurer that has not only seen a substantial improvement in its market share in 2020 compared to the previous year, but has also set ambitious targets for FY21.
Star Health Insurance, the country’s largest standalone health insurer (with 52 percent market share), is now the country’s fourth-largest private insurer in the non-life space. It had a market share of 4.36 percent as of August 2020.
A year ago, it was the sixth-largest insurer but the Covid pandemic and the resultant scramble to purchase health insurance has pushed it up two slots since then. Anand Roy, Managing Director of Star Health Insurance, told Moneycontrol in an interview that the company is targeting a premium of Rs 10,000 crore by the end of FY21.
The insurer is targeting 6 percent market share by the close of this fiscal year, added Roy. In the total business, 10 percent will be group business while the rest would be retail.
That is 46 percent YoY growth in premium collection. The non-life industry, as a whole, has seen only 4 percent growth in premium collection so far. Standalone health insurers have seen 26 percent YoY growth (as of August 2020).
So far, Star Health has 30 percent market share in retail health and is bigger than even the state-owned general insurers.
“Awareness about health insurance rose after the Covid-19 outbreak. Younger people are keener to buy health insurance now. The standard Covid-19 product has also been popular. Our growth is a combination of all these factors,”