Star Health's Neo targets younger customers; eyes shift from parental, corporate covers

CHENNAI: With less than 40% of its new customers last year aged below 35, Star Health and Allied Insurance is looking to tap India's young population with a new health insurance product that incentivises early entry through premium protection and wellness benefits.

On Thursday, the company announced the launch of Young Star Neo, targeting individuals aged 18-40, with an industry-first ‘Time Travel’ feature that allows policyholders to retain their entry-age premium advantage even after making a claim.

“Less than 40% of our new customers were below 35 years, while 60% were above that age. We felt this was not a true reflection of India's demographics, given the country's large young population,” Anand Roy, MD-CEO, Star Health, said at a press meet here.

He said the product (with sum insured options from Rs 10 lakh to Rs 1 crore), was designed to encourage young, financially independent individuals to buy their own policies rather than depend solely on parental or employer-provided health insurance.

Calling for tighter regulations in the healthcare sector, Roy said 65-70% of Star Health's new business customers come from small towns and tier-2 and tier-3 cities, underlining the growing importance of these markets.

The insurer with a network of over 17,000 hospitals settles seven claims every minute. It reported a retail claims settlement ratio of 92%, while 96% of cashless claims receive approval within three hours.

Star Health, which has over 8.5 lakh agents, derives 84% of its business from the agency channel, while digital contributes 12-13%. Roy said the company would focus on expanding insurance penetration rather than relying on higher commissions for distributors.