After exiting Star Health, founder in talks with TVS group for new health insurance venture

The founder of Star Health and Allied Insurance, V Jagannathan is planning to start a new health insurance venture and is reportedly in talks with TVS group for its equity participation.

As per Times of India, the 79-year-old entrepreneur, who exited Star Health, has decided to start a new company in the health insurance sector, along with former Star Health CEO Dr S Prakash. Jagannathan established Star Health and Allied Insurance following his retirement as the chairman of United India Insurance.

Health insurance venture

TVS group which previously owned Madras Motor and General Insurance has a history in the insurance sector. Madras Motor merged into United India Insurance after Nationalization and in the post-liberalisation era Sundaram Finance promoted by Madras Motor, launched Royal Sundaram Insurance, a general insurance company.

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As per The Economic Times, health insurance sector has witnessed remarkable growth, surpassing the previously dominant motor insurance segment. With a growth rate exceeding 30%, health insurance has become the fastest-growing segment in the industry. It is also anticipated that total health insurance premiums will surpass Rs 1 lakh crore in the current financial year. This is a notable increase from the Rs 90,667 crore recorded last year.

The report also mentioned that several industry participants are exploring the possibility of establishing standalone health insurance companies to capitalize on this burgeoning market, given the robust growth witnessed in the health insurance segment.