Amid increased scrutiny over rising medical inflation, Star Health CEO calls for greater regulatory oversight of the healthcare sector
Star Health Launches Young Star NEO
Star Health and Allied Insurance has introduced a new health cover, Young Star NEO, aimed at drawing more young Indians into the retail health insurance fold. The product is open to individuals aged 18 to 40, with sum insured choices ranging from ₹10 lakh to ₹1 crore, including an unlimited sum insured option. Policy terms run for one, two or three years.
The insurer's MD and CEO, Anand Roy, said that fewer than 40 per cent of its new customers last year were below 35, a figure he described as out of step with the country's demographic profile. The product's distinguishing feature is its premium structure: renewal premiums stay fixed until a claim is lodged, and after a claim, renewal is priced at the entry age plus one year rather than the policyholder's actual age at renewal.
Why It Matters For Businesses
The launch sits alongside a broader push by Star Health for tighter oversight of healthcare providers. Roy argued that while health insurance is heavily regulated, the healthcare sector is not, and called for standardisation of treatment protocols and checks on hospital billing. He pointed to concerns raised by the Supreme Court, the Competition Commission of India and a parliamentary panel over healthcare practices.
Roy also backed the proposed introduction of co-payment in health insurance, contending that a 10 per cent co-pay would not substantially raise out-of-pocket costs and that some risk-sharing is needed to curb overbilling, as exists in motor and property insurance. On distribution, Star Health, which sources over 84 per cent of its business from about 8.5 lakh agents, supports the regulator's proposed caps on commissions. Roy said agents should widen their customer base rather than depend on high commissions from individual policies, noting that only around seven crore Indians hold retail health cover against an addressable population of 70-75 crore.
What To Watch Next
The insurer is deploying artificial inte…
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