Star Health and Allied Insurance Co. , a leading health insurance provider in India, has reported significant growth in its profit for the half year ended September 30, despite challenges in the market environment.

Key Financial Highlights

Profit Growth and Premium Expansion

Star Health's Profit After Tax for the half year stood at ₹518.00 crores, marking a substantial 21.00% increase from the same period in the previous fiscal year. This growth in profitability comes alongside a 12.00% year-over-year increase in Gross Written Premium, which rose to ₹8,809.00 crores.

Revenue Growth and Market Share

The company's revenue growth indicates a continued expansion of its insurance business. Notably, retail Gross Written Premium increased by 17% to ₹8,332.00 crores, driven by a 24% growth in fresh retail premiums and a 98% renewal persistency in retail health. Star Health maintains a 32% market share in India's retail health insurance segment.

Operational Efficiency and Claims Management

Star Health has shown improvements in several key operational metrics:

1. Expense Ratio: Improved to 29.7% from 31.1% in the previous year.
2. Net Incurred Claims Ratio: Stood at 70.6%, a 30 basis points decrease from the same period last year.
3. Combined Ratio: Improved to 100.3% from 102.1% in the previous year.
4. Solvency Ratio: Remained at 2.15x.

Product Performance and Customer Satisfaction

The company's flagship product, Super Star, has surpassed the ₹1,250.00 crore premium milestone within its first year. Additionally, Star Health has seen improvements in customer satisfaction metrics:

• Claims NPS improved from 52 to 61
• Overall company NPS increased from 59 to 61

Looking Ahead

Star Health's performance in the first half positions it in the competitive health insurance market. The company's ability to grow its premium income while improving operational efficiency and customer satisfaction is noteworthy. Key focus areas for the management in the coming quarters may include maintaining this growth trajectory and further enhancing profitability.

About Star Health and Allied Insurance Co.

Star Health and Allied Insurance Co. continues to be a prominent player in the Indian health insurance market. The company's focus on innovation, customer service, and operational efficiency has contributed to its performance in the health insurance sector.

Star Health and Allied Insurance , along with the Association of Healthcare Providers of India (AHPI), have announced a significant development in the healthcare sector. The two organizations have agreed to resume cashless services at AHPI member hospitals starting October 10, marking a positive turn in their ongoing negotiations.

Resumption of Cashless Services

The decision to restore cashless services comes after a brief suspension period. AHPI had previously advised its member hospitals to halt cashless services from September 22 due to certain concerns. However, following productive discussions between the two parties, an agreement has been reached to address the outstanding issues.

Key Points of the Agreement

• Effective Date: Cashless services will resume from October 10.
• Resolution Timeline: Both organizations have committed to resolving pending matters, including tariff revisions, by October 31.
• Collaborative Approach: AHPI has agreed to support the formation of an industry-level group. This group will work in collaboration with insurers to develop agreements that benefit patients.

Impact on Healthcare Accessibility

This development is expected to have a significant positive impact on healthcare accessibility for patients. The resumption of cashless services will ease the financial burden on patients seeking treatment at AHPI member hospitals, as they will not need to pay upfront for covered medical services.

Scale of Impact

• AHPI represents over 15,000 hospitals across India.
• Star Health operates a network of more than 11,300 hospitals.

Given the extensive network of both organizations, this agreement is set to benefit a large number of patients nationwide.

Star Health's Financial Position

Star Health and Allied Insurance has reported strong financial metrics:

These figures underscore the insurer's significant market presence and financial stability in the healthcare insurance sector.

Looking Ahead

The collaboration between AHPI and Star Health demonstrates a commitment to improving the healthcare ecosystem in India. As they work towards resolving outstanding issues and establishing new industry standards, patients can expect more streamlined and accessible healthcare services in the future.