Star Health & Allied Insurance Co. Ltd. stands as India's leading private health insurance company, headquartered in Chennai, having commenced operations in 2006 as India's first standalone health insurance provider. The company has revolutionized the health insurance landscape in India by exclusively focusing on health, accident, and travel insurance products, carving out a unique position in the competitive insurance market.
Star Health & Allied Insurance Ltd (Star) is India's first standalone health insurance provider and is the largest private health insurer in India with a market share of 15.8% in the Indian health insurance market in FY21 with leadership in the attractive retail health segment. With a long-standing relationship with banks in India, Star Health insurance has grown in stature and is now the third biggest health insurer in terms of market share with 15.35%.
The company's business model focuses on providing comprehensive health insurance solutions tailored to diverse customer needs. Star Health offers products for every market sector, from individuals to families and corporates. As a new age company, they operate directly through various channels, including digital, aggregators, brokers, etc., to cater to the needs of all sections of society.
Star Health commands a market capitalization of ₹24,879 crore as of recent data, with revenue of ₹16,101 crore and profit of ₹646 crore. For the full year, net profit declined 23.57% to ₹645.86 crore in the year ended March 2025 as against ₹845.01 crore during the previous year ended March 2024. Sales rose 14.56% to ₹14,822.20 crore in the year ended March 2025 as against ₹12,938.27 crore during the previous year ended March 2024.
The company's quarterly performance shows mixed results with revenue of ₹4,087.70 crore as on March 2025 (Q4 FY25) but net profit fell significantly to ₹0.51 crore in Q4 FY25, representing a 99.64% decline from the previous year's same period.
Star Health boasts of over 14,000 network hospitals, 850+ branch offices spread across the country, over 6.80 lakh agents and over ₹30,300 crore in paid claims. With over 15,000 employees, the company offers innovative services and products in health, personal accident and overseas & domestic travel insurance aligned with the needs of the Indian Market.
The company has demonstrated remarkable growth in its distribution network. As of March 31, 2024, the company's branch network was 3.40 times larger than the second-largest non-public health insurance provider. The company's extensive distribution network comprises of 881 health insurance branches and over 1,700 customer touchpoints, reaching across 25 states and 5 Union Territories in India.
Having covered more than 17 crore lives since inception, Star Health is scaling up its services to ensure that more lives are covered under health insurance. Being the health insurance specialist, they ensure that timely assistance is provided during health emergencies. The Star Health & Allied Insurance Company boasts of settling 90% of cashless claims within 2 hours with the help of its in-house claims team.
The company has established comprehensive customer service infrastructure with a 24x7 multilingual call centre, which is dedicated to claims assistance. Along with offering a broad selection of specialist products and health insurance, they also offer free telehealth consultations with their expert team of in-house doctors, along with a free second medical opinion if necessary. They have completed over 8 lakh consultations which focus on primary care, specialist's referral, secondary opinions and decision support.
Star Health Insurance offers a wide range of health insurance plans that cater to the different needs of individuals and families. The company offers plans for individuals, families, senior citizens, and corporate employees. It also offers special policies catering to individuals with diabetes, heart disease, cancer, and children with special needs.
The company has launched around 50 new products, including various policy variations. In FY 2023-24, it launched the first digital-only product, namely "Smart Health Pro". Star Health and Allied Insurance has launched Smart Health Pro, a health insurance policy available exclusively online. This unique policy allows customers to personalize their coverage by selecting from five optional add-on covers. Tailored to meet the evolving needs of India's digitally savvy population, the policy allows individuals to choose a sum insured ranging from ₹5 lakh to ₹1 crore, according to their specific requirements.
Star Health and Allied Insurance Company (Star Health Insurance) has secured the highest sustainability score among insurance companies in the Indian Insurance sector in S&P Global Corporate Sustainability Assessment. Star Health Insurance becomes India's most sustainable insurance company 2024 in the S&P Global Corporate Sustainability Assessment (CSA). The company has secured a score of 53 based on the robust Environmental, Social, and Governance (ESG) parameters.
The Insurance Regulatory and Development Authority of India (IRDAI) has issued a show cause notice to Star Health and Allied Insurance Company for alleged violations of various IRDAI regulations and guidelines. In August 2024, Star Health and Allied Insurance experienced a severe data breach affecting 31 million customers. Sensitive information, including Aadhaar numbers and medical reports, was compromised and sold on dark web channels, raising concerns about identity theft and fraud.
The stock is trading at 3.50 times its book value, though the company is reporting repeated profits, it is not paying out dividend with promoter holding at 57.7%. 50% of analysts recommend a 'BUY' rating for Star Health & Allied Insurance Company Ltd. with an average target price of ₹449.41.
Star Health continues to strengthen its market position through strategic partnerships and technology adoption, positioning itself as a comprehensive health insurance solutions provider in India's rapidly growing healthcare insurance market.
