An experienced insurance expert named V Jagannathan, who founded Star Health Insurance from scratch in 2006, is planning to start another health insurance company even though he had retired as CEO of a different insurance company. He left Star Health Insurance a few months ago, which he had grown into a large health insurer with a value of Rs 37,000 crore.
It seems that Jagannathan doesn’t have any agreement that prevents him from starting a new insurance company. While there are age restrictions for being a CEO or board member according to the Companies Act, he can still be involved as a promoter.
Jagannathan has enough money from his previous venture to set up a new health insurance company, and he has potential investors interested in supporting him. The health insurance industry is growing rapidly, with more than 30% growth, and the entry of new players like Jagannathan’s company is not likely to negatively affect Star Health.
Some experts believe that the competition in health insurance has been intense, particularly for group health insurance, where companies are aggressively trying to increase their revenues. The finance ministry urged public sector insurers to manage finances effectively, leading them to offer better rates. But lately, their quotes for group health insurance have become competitive again.
Milliman’s report suggests that people’s increasing awareness of health coverage’s importance will lead to significant growth in health insurance in the post-COVID years.