Star Health Expands Affordable Insurance Plans Across Smaller Cities

Star Health is expanding its affordable health insurance plans across tier-2 and tier-3 cities as the company looks to tap into rising healthcare awareness in smaller towns. The insurer’s latest move reflects the growing demand for low-cost health coverage in non-metro markets, where families are increasingly seeking financial protection against rising medical expenses and hospitalization costs.

The company plans to introduce two new affordable insurance products during the current financial year to strengthen its presence in underserved regions. Managing Director and CEO Anand Roy said the expansion is part of a broader strategy to make health insurance more accessible to middle-income households outside major urban centres.

At present, Star Health offers 35 health insurance products catering to different customer needs. The company is now focusing heavily on smaller cities and towns, where awareness about medical insurance has improved significantly after the pandemic. Industry experts believe this shift could help increase insurance penetration in regions that have traditionally remained underinsured.

The insurer is targeting a Gross Written Premium (GWP) of Rs 24,000 crore in FY27, up from Rs 20,400 crore recorded in FY26. It also aims to touch Rs 30,000 crore in GWP by FY28 by expanding deeper into regional markets and improving product accessibility.

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Roy noted that customers are becoming more accepting of moderate premium increases due to the steady rise in healthcare costs. He added that the company expects premium hikes to remain in the mid-to-high single-digit range during FY27 as treatment and hospitalization expenses continue to grow across India.

Retail health insurance remains the company’s biggest revenue contributor, accounting for nearly 96 per cent of its business. In Andhra Pradesh and Telangana alone, the insurer settled claims worth Rs 1,254 crore during FY26, covering nearly 1.8 lakh claims and recording a 24 per cent year-on-year increase.

Nationally, the company settled claims worth Rs 11,903 crore in FY26 and reported a claims settlement ratio of 92 per cent. The strong settlement performance is expected to support customer trust as the company pushes further into India’s smaller-city insurance market.