INDIAN STANDALONE HEALTH INSURER STARTS NEXT MONTH

India-based Star Health and Allied Insurance, the country’s first standalone health insurer, will begin operations on April 14, having received its licence from the Insurance Regulatory and Development Authority on March 16. Star Health, which is backed by “individuals in association with Oman Insurance Co” and other overseas partners, will have a capital base of Rp1.05bn. It will be headed by V Jagannathan, previously chairman and managing director of United India Insurance. Speaking at a press conference yesterday, Mr Jagannathan said that Star Health would deal in health cover, personal accident insurance and overseas travel insurance. It will focus initially on the southern States of India, where it expects to open 75 offices. Mr Jagannathan said that “the claims experience in the southern states is much better. The experience in Delhi and Mumbai is not so good”. He anticipated premiums of about Rp500m in the first year, with the company reaching break-even by the end of the second year of operations. He noted that Star Health would be processing its own claims rather than using third-party administrators. Oman Insurance and two other individual businessmen from the United Arab Emirates hold a 26% stake in the insurer, with Oman Insurance having about a 10% stake.