Insurance News

Founder of Star Health in talks with TVS Group for new health insurance venture


V Jagannathan, the founder of Star Health and Allied Insurance, is reportedly engaged in discussions with the TVS Group for equity participation in his new health insurance venture.

According to a TOI report, the 79-year-old entrepreneur, who exited Star Health, has decided to start a new company in the health insurance sector, along with former Star Health CEO Dr S Prakash. Jagannathan established Star Health and Allied Insurance following his retirement as the chairman of United India Insurance.

The TVS Group, based in Chennai, has a history in the insurance domain, having previously owned Madras Motor and General Insurance before the industry’s nationalization. After nationalization, Madras Motor merged into United India Insurance. Subsequently, in the post-liberalization era, Sundaram Finance, initially promoted by Madras Motor, launched Royal Sundaram Insurance, a general insurance company.

The health insurance sector has witnessed remarkable growth, surpassing the previously dominant motor insurance segment. With a growth rate exceeding 30%, health insurance has become the fastest-growing segment in the industry. It is anticipated that total health insurance premiums will surpass Rs 1 lakh crore in the current financial year, a notable increase from the Rs 90,667 crore recorded last year.

As of November in the current financial year, health insurance premiums have already exceeded Rs 70,479 crore. Standalone health companies have contributed significantly, with a total of Rs 19,118 crore. Star Health, among these standalone companies, leads the way, contributing Rs 8,825 crore between April and November 2023. Other notable standalone players in the sector include Care Health, Aditya Birla Health, Niva Bupa, and Manipal Cigna.

Given the robust growth witnessed in the health insurance segment, several industry participants are exploring the possibility of establishing standalone health insurance companies to capitalize on this burgeoning market.


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