Star Health wants to apply for composite license to enter pure term and motor insurance space

economictimes.indiatimes.com:

Health and Allied Insurance Co. Ltd., the standalone health insurance company, is looking to diversify by entering the protection or term insurance and motor insurance markets. The company will leverage its existing health insurance portfolio and expand its customer base.

For this, Star Health will apply for a composite insurance license, once the Insurance Act is amended. This amendment, which allows insurers to offer both life and non-life insurance products under a single license, is currently awaiting parliamentary approval and is expected to be taken up soon.

The company will look to leverage its direct-to-consumer (DTC) channels and existing network of agents and plans to market life and motor insurance products to its current customer base. The company's motor insurance strategy will not only be acquiring new customers but also focusing on renewals, given the high growth potential in the motor and health insurance segments within the general insurance industry.

Star Health has set an ambitious target to grow its total book to Rs 30,000 crore by 2028, up from its current Rs 15,000 crore. While 90% of the company's business currently comes from retail health insurance and 10% from group, it plans to increase its group insurance segment to 20% by 2028.