The Chennai-headquartered insurer is ramping up investments in AI-led claims processing, underwriting and customer servicing, while simultaneously launching a lower-cost insurance product aimed at improving affordability in smaller cities.

MD-CEO Anand Roy told DT Next the company has introduced a 'Value Plus' product as part of its 20-year milestone celebrations, offering nearly 20 per cent lower average premiums. Combined with the recent GST waiver benefits, the effective reduction for customers could be close to 40 per cent.

“We want to increase penetration in smaller cities. Despite the GST waiver, customers still feel insurance premiums are expensive and affordability continues to be a challenge,” Roy said.

Highlighting the broader industry challenge, he pointed out that despite 25 years of insurance sector privatisation, only around six crore people are covered under retail health insurance out of India’s population of 150 crore. “IRDA’s vision is insurance for all by 2047, but there are only around 20 years left,” he noted.

TN remains central to Star Health’s strategy. Roy said the state is the company’s single-largest market after Maharashtra, or almost equal to it in terms of premium contribution.

“TN contributes around 15 per cent of our business and we have more than 60 per cent market share in the retail health insurance segment here,” he said, adding the state continues to be among the company’s fastest-growing markets despite already having relatively high insurance awareness and government-backed healthcare schemes.