Star Health launches Young Star NEO for the younger generation

Standalone health insurance company Star Health Insurance has developed a new product named 'Young Star NEO' to connect the younger generation with the insurance sector, as reported by Businessline. The company's primary objective is to increase the penetration of insurance among India's youth.

Anand Roy, MD and CEO of Star Health and Allied Insurance Company Limited, stated in a media interaction that when the company examined the profile of new customers acquired last year, it was found that the proportion of customers under the age of 35 was less than 40 per cent. Roy added that this figure is not a true reflection of the country's demographic situation, which is why this new product has been launched targeting the youth.

The 'Young Star NEO' policy is available for individuals aged 18 to 40 years. Under this scheme, customers can select an insurance sum ranging from ₹10 lakh to ₹1 crore, which also includes an option for unlimited insurance cover. The tenure of this policy can be kept for one, two, or three years.

The company highlighted a unique feature of this product: it is a first-of-its-kind initiative where the customer's renewal premium will remain stable as long as no claim is made. Furthermore, even if a claim is made, the renewal premium will be calculated based on the age at entry + 1 year, instead of the customer's actual age at the time of renewal.

Amid discussions regarding rising medical inflation and its impact on the affordability of health insurance, Anand Roy emphasised the need for stricter regulatory oversight in the healthcare sector. He stated that it is extremely necessary to standardise treatment protocols and oversee hospital billing methods.

Speaking on the regulation of the health industry, Anand Roy noted that while the health insurance industry is highly regulated, the healthcare industry is completely unregulated. Therefore, there is a strong need for regulation, oversight, and governance for the healthcare industry. Referring to concerns expressed by the Supreme Court, the Competition Commission of India, and a parliamentary panel regarding healthcare sector practices, he said that for a country with a large and vast scale like India, oversight in this sector is now the need of the hour.

To prevent excessive billing by healthcare providers, Roy supported the proposal to introduce 'co-payment' in health insurance policies. He believes that sharing risk to a certain extent can control excessive billing. When questions were raised that co-payment would increase out-of-pocket expenses for policyholders, Roy clarified that a 10 per cent co-pay would not result in any significant increase in costs. He explained, using the example of motor and property insurance, that sharing risk to some extent is also necessary in health insurance.

Furthermore, Roy stated that work is being done by the General Insurance Council to ensure compliance with standard treatment protocols by the insurance industry and to resolve concerns regarding medicine prices.

Speaking on the use of technology, he mentioned that Star Health is using Artificial Intelligence to identify cases of insurance misuse in customer service and claim processing. The company expects that the entire claim process will be automated through Artificial Intelligence in the next 3 years.

Star Health and Allied Insurance Company Limited was a leading standalone health insurance company in India, providing services in the health insurance sector.