Star Health settles 2.5 lakh+ claims worth over 1,606 crore in FY26 in Tamil Nadu

 

Strengthens leadership position with 41% retail health market share in the state

Chennai, June 24, 2026: Star Health and Allied Insurance Company Limited, India’s leading standalone health insurer, today reinforced its commitment to improving health insurance access and delivering faster, more transparent and customer-focused claims support across Tamil Nadu. In FY26, the company settled 2.5 lakh+ claims worth over 1,606 crores in the state.

With Chennai serving as its home market and an important centre for its operations, Star Health continues to strengthen healthcare access across Tamil Nadu through its on-ground presence, advisor network, hospital partnerships and technology-enabled claims support. In FY26, the company recorded GWP of 2,951 crores in Tamil Nadu and covered 3.8 million+ lives, with over 94% of its portfolio comprising retail health. Its presence in the state is supported by 119 branches, 1.28 Lakh+ advisors and 1,900+ network hospitals.

Star Health continues to hold a leadership position in retail health insurance, with 31.3% market share across the general insurance industry nationally in FY26. In Tamil Nadu, the company held 41% retail health market share in FY25, reinforcing the state’s importance as one of its strongest markets.

To address affordability and improve access to higher health protection, Star Health is also strengthening its product portfolio through Value Plus, which offers customers a more manageable premium structure through a curated hospital network. The company expects Value Plus to contribute at least 10% of its business this financial year, supporting its focus on improving health insurance penetration amid rising healthcare costs.

Anand Roy, MD & CEO, Star Health and Allied Insurance, said, “Tamil Nadu is where Star Health’s journey began, and the 41% retail health market share we held in the state in FY25 reflects the depth of customer trust built over the years. Nationally, our 31.3% retail health market share in FY26 gives us both scale and responsibility. The next phase is about using that scale to make the customer journey simpler, from local advice and hospital access to faster claims support, preventive health and care at home. With more than 8,300 claims processed every day and AI now supporting 20% of routine cashless claims, our focus is to make health insurance more responsive and useful for families when they need it most.”

At a national level, Star Health settled claims worth 11,900+ crore covering 30.6 lakh claims in FY26. The company processes more than 8,300 claims every day, with 92% of cashless claims processed in less than three hours. Technology continues to strengthen these capabilities, with nearly 200 crore invested in technology transformation initiatives and almost 90% of proposals processed digitally. As part of this shift, Star Health has enabled AI-driven straight-through processing for routine cashless claims, with 20% of cashless claims currently processed through AI and a target to scale this to 50% over the next two years. Star Health is also deepening its advisor-led distribution network to improve health insurance access beyond metros. The company plans to onboard at least 1 lakh agents in FY27, with nearly 80% expected to come from Tier 2 and Tier 3 cities, strengthening its ability to serve families in smaller markets through local advice, customer education and on-ground support.

Balaji Babu, Business Head – Tamil Nadu, Star Health Insurance, said, “Tamil Nadu has shaped Star Health’s journey from the beginning, and our strength in the state has been built through deep local relationships. Our customers, agents, partners and employees have all played an important role in this journey. The agent meet is an opportunity to recognise the agency force that has helped take health insurance conversations into homes, neighbourhoods and smaller markets across the state. Their everyday engagement with customers continues to strengthen trust, improve awareness and support families in making more informed health insurance decisions.”

Beyond claims, Star Health continues to strengthen its role as a broader health partner by expanding preventive, digital and home-based care support. In FY26, preventive health check-ups increased 42% to 5.48 lakh, while telemedicine consultations rose 88% to 1.17 lakh. Home Healthcare utilization reached 92,153 across 300 cities, supporting customers with care at home for clinically appropriate conditions and helping reduce unwarranted hospitalization. Through its Arogya Seva Kendra initiative, implemented in partnership with Piramal Swasthya, Star Health is providing structured primary healthcare services free of cost to underserved communities. Operating through 32 clinics across nine states, the programme aims to reach over one million lives. To date, the clinics have recorded 78,651 visits, conducted 86,595 medical tests and delivered 8,682 health education sessions. In Tamil Nadu, Arogya Seva Kendras operate in Chennai, Nagercoil, Thoothukudi, Tiruppur and Karur.