Health Insurance News

Star Health Seeks Cost Cuts to Boost Insurance Sustainability

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Star Health and Allied Insurance, India's largest standalone health insurer, has called for a phased reduction in distribution costs, including commissions, to make health insurance more affordable and sustainable. CEO Anand Roy suggested gradually lowering the current 35% cap on management expenses by 1% annually.

Highlighting the disparity in regulation between healthcare delivery and insurance, he urged GST waivers on premiums for senior citizens and vulnerable groups. Roy noted medical inflation varies, with treatment costs rising 8-10% depending on hospitals, driven by patient demand for advanced treatments. While minor and regular premium hikes are inevitable, he recommended rewarding healthier individuals with discounts.

"Ideally, 2-3% of a family's income should go towards health insurance," he advised, suggesting higher allocations for those covering elderly family members. Roy emphasized Star Health operates within regulatory expense limits and reiterated the need for systemic changes to promote affordability in the health insurance ecosystem.

Rajeev Kher Appointed Chairperson of Star Health Board

Star Health has named Independent Director Rajeev Kher as Chairperson of its Board of Directors, effective from April 29, 2025, pending regulatory approval from IRDAI. Kher, a retired IAS officer and former Commerce Secretary, brings decades of experience in regulatory governance, international trade, and sustainable policy. He has also served on the Competition Appellate Tribunal and played a key role in shaping India's Foreign Trade Policy (2015-2020).