WIXLIB

11Corporate overviewStatutory ReportsFinancial StatmentsThe soul of Star HealthEmployees relate their first-hand experiences of working at Star Health“The four key pillars of StarHealth are respect, care,culture and recognition.A colleague from theadministration departmentwas enthusiastic to work inthe compliance team and theorganisation made that switchhappen. During the pandemic,when claims were criticalto manage, the Companyprovided flexible workingoptions. Feeding mothers andpregnant ladies were givenspecial attention in terms ofsafeguarding them; a cancersurvivor was given due care formanaging her wellness.”Radhika Nagarajan, GeneralManager (Chairman’s Secretariat)“The remarkable thing aboutworking at Star Health is thebonding with colleagues onehas been with for years: morethan 5,000 people (out of14,000) possess an experienceof five years or more, 2,000people have nearly ten yearsof experience and another70-odd possess an experienceof 15 years with the Company.Besides, the ‘family culture’(as opposed to a ‘professionalculture’ makes all thedifference.”Dr. Sriharsha. A. Achar, ChiefHuman Resource Officer“Last year, my entire familywas affected by Covid. Ilost my mother; there weremedical issues that warrantedhospitalisation. Star Healthcoordinated through theHR team and facilitated theadmission of all our familymembers to hospital. Everysingle family member hadbeen covered by the company.”R. Margabandhu, Vice President(Chief Risk Officer)“The most remarkable thingabout working in Star Healthinsurance is the leadershipof our Chairman. Everymorning and evening, ourChairman would walk intoour cubicle, sit with us andask about customer service,grievance and feedback. Oneday, a customer walked intoour cubicle; the Chairmanimmediately retrieved a chairfrom the adjoining cubicle,made him sit, began engagingwith him and addressed hisrequirement. That was alearning for all of us!Chandrabose S, GeneralManager (Customer service &Client relationship)“At Star Health, theremuneration is one of thebest across the industry. StarHealth is the most recognisedbrand as far as industry isconcerned and the employeesfeel proud to explain wherethey work. Our weekly meetingwith senior team membershelped counsel attendees. Wewere happy to return to officewhen it re-opened after thelockdown restrictions wererelaxed. The most remarkablething: the Company did sowell in spite of all challengesand vaccinated most of theemployees”Vikas Sharma, Executive Director

Star Health and Allied Insurance Co. Ltd. Annual Report 2020-2112How we strengthened ourbusiness model during achallenging FY 2020-21Product rangeThe Company offers a range offlexible and comprehensive coverageoptions for the following insurancetypes:Retail health insurance, which ispaid for by private individuals orfamilies, generally through out-ofpocket expenses or private insuranceGroup health insurance, which ispaid for by employers typically in theform of company health insuranceplans that could involve co-paymentsby the employeeGovernment health insurance,which is paid for by the government,typically in the form of central orstate government health insuranceprogrammesThe Company also offers personalaccident and travel insurance, paidfor by individuals or families oremployersRetail health insuranceOur retail health products targeta variety of customer segments,including individuals, families,students, senior citizens and personswith pre-existing medical conditionsacross the broader middle marketcustomer segment.Our products include family floaterproducts, such as our Family HealthOptima, in which the single suminsured covers the family, followingthe payment of a premium (quarterlyor annually); individual products suchas Mediclassic and Accident Carecan be tailored to the needs of theindividual; specialised products likeSenior Citizens Red Carpet HealthInsurance Policy, Diabetes Safe, HIVCare and Star Cardiac Care InsurancePolicy, address customers with preexisting conditions.In FY 2020-21, the following fourproducts accounted for nearly 90% ofour retail health business:Family Health Optima InsurancePlan: A family floater single policycoverage for the family, targetingthose from 18 to 65.for an entire family under the familyfloater plan.MediClassic: This health insuranceplan is available for individuals andfamily.Senior Citizens Red Carpet HealthInsurance Policy: This healthinsurance plan addresses individualsfrom 60 to 75 and covers pre-existingdiseases from the second yearonwards with guaranteed lifetimerenewals.Star Comprehensive: A completehealthcare protection plan forindividuals under an individual plan orGroup HealthOur group health insurance policiesprovide coverage to employees ofcorporates, including SMEs, throughthe company health insuranceplans. Our group health policies aregenerally sold through our corporateagents and brokers, while certaingroup health insurance products aresold in collaboration with corporateagent banks and online channelpartners (web aggregators). Thegroup health segment consists ofpolicies purchased by corporates,including SMEs, as employeebenefits, that may involve copayments by employees. Grouphealth accounted for 10.8% of ourtotal GWP in Fiscal 2021

13Corporate overviewStatutory ReportsFinancial StatmentsGovernment HealthGovernment health insuranceconstituted a large portion of ourGWP at one time and providedus with rich experience. In 2010,the company shifted from thegovernment health businesstowards the attractive retail healthinsurance segment (even as wecontinued to offer government healthinsurance through our participationin Government Ayushmaan Bharathealth programme addressing lowincome households).from personal accident insuranceincreased from H1,162.04 Million inFiscal 2019 to H1,692.61 Million inFiscal 2021.available to permanent residents inIndia, corporate executives abroadfor business purposes between 18and 70 years and students studyingabroad.Kavach policy, Star Health and AlliedInsurance Co. Ltd” and “CoronaRakshak policy, Star Health and AlliedInsurance Co. Ltd.premium payment for products likeFamily Health Optima Insurance Plan,Senior Citizens Red Carpet HealthInsurance Policy, Arogya SanjeevaniPolicy and Young Star InsurancePolicy.Personal AccidentPersonal accident insuranceprovides benefit-based coverage topolicyholders for accidents. Our GWPTravelWe offer health insurance assistancecover for domestic and foreign travelthrough three plans. Our plans areProduct launchesThe company launched threeproducts (Arogya Sanjeevani, YoungStar Insurance Policy, PA Floater)in the Fiscal 2021.The Companyalso launched products customisedaround the pandemic CoronaConvenience: The Companyintroduced instalment facilities forHow we strengthened our claim service improvements for COVID-19We engage with customersthrough our in-house tele-medicineservice called TALK TO STAR,which provides customers accessto experienced doctors who canprovide second opinions andalternative medical solutions on thetelephone or through the internetand, wherever possible, real-timeupdates.We strengthened our wellnesssystem for preventive health careawareness and a special caretakerfor Star customers.We launched a work diary for dailytask tracking across Star HealthTeams and new/improved serviceprogrammes, which improvedproductivity.We re-engineered the claimsprocesses (without physical bills,based on a scanned copy) forspeedy claims settlement.We complied with all guidelinesissued by IRDAI relating to Covid-19We achieved higher customer andhospital satisfaction in clearingclaims with speed and sensitivity .We utilised digitalisation andtechnology integration acrossvarious arenas like systemassigned claims to address first-infirst-out processing, claims billautomation, customer onboardingand hospital relations etc.We instituted a dedicatedClaims Relationship Cell tohandhold customers during thehospitalisation and post-dischargestages.

Star Health and Allied Insurance Co. Ltd. Annual Report 2020-21PART TWOThe rationale for StarHealth’s presence in thehealth insurance sector14

15Corporate overviewStatutory ReportsWhat were thereasons for thesuccess of StarHealth in just15 years?In the followingpages, we haveattempted toanswerFinancial Statments

Star Health and Allied Insurance Co. Ltd. Annual Report 2020-2116

17Corporate overviewStatutory ReportsFinancial StatmentsNational perspectiveIndia.Insurancesector.Star Health.How the growth of a country and buoyancy ofa sector translated into sustainable growth forour companyAttractive: The overall Indian health insurance space isincreasingly attractive.Under-penetrated: The Indian retail segment within India’shealth insurance space is under-penetrated and compelling.First-mover: Star Health has combined first-mover status,scale and share of market.Distribution: Star Health’s competence has been derivedfrom the breadth and depth of its distribution footprint.Customise: Star Health’s success is the result of a capacityto create a product for every need.Customer delight: Star Health’s recall has been reinforcedthrough customer delight.Hospital network: Star Health supports customers throughone of the largest health insurance hospital networks alnetworkDistributionCustomerdelightCustomise

Star Health and Allied Insurance Co. Ltd. Annual Report 2020-2118Focus on Indian health insuranceThe overall Indianhealth insurancespace is increasinglyattractive UnderpenetratedIndia’s health insurancepenetration was a mere 0.36%of GDP in 2019 compared to aglobal average of 2.0% of GDP(Source: Crisil Research)Low densityIndia’s health insurance density,based on per capita premium,was US 5 in 2019, lower than thecorresponding global numbers(Source: Crisil Research)Life expectancyThe Indian population is expected togrow to approximately 1.4 Billion by2026 and the population of personsover 60 years old is expected toincrease even faster, both of whichwill increase the need for healthcareservices. (Source: Crisil Research)Direct health spendingIn India, the out-of-pocket expenditure onhealthcare was nearly 63% of total healthexpenditure as of 2018, indicating thatmost households and individuals do nothave health insurance or adequate cover(Source: Crisil Research)PandemicThe pandemic increasedhospitalisation, related costsand the awareness for healthinsurance

19Corporate overviewStatutory ReportsFinancial StatmentsThe retail segment of India’s insurance sectorThe Indian retail segmentwithin India’s healthinsurance space is underpenetrated and compelling Value-addedLower claimsThe retail segment within the healthinsurance sector in India generatesa considerably higher share of theoverall premiums pool, making it anattractive segment for insurancecompaniesThe retail segment is marked bya lower claims ratio, making it anattractive space for private retail healthinsurance companies9% of the total number of livescovered by health insurance marketin India in Fiscal 2020 is contributedby Retail health insurance73% of claims in the retailhealth segment, Fiscal2020 (Source: Crisil)59% of claims amongSAHI39% share of the total health GWPin the overall health insurancemarket in Fiscal 202092% of claims in the governmenthealth segment (Source: Crisil)67% of claims among privatesector insurers99% of claims in the group healthsegment, Fiscal 2020(Source: Crisil)92% of claims among private andpublic sector insurers in Fiscal 2020(Source: Crisil)

Star Health and Allied Insurance Co. Ltd. Annual Report 2020-21PART THREECulture,character andcompetence20

21Corporate overviewStatutory ReportsFinancial StatmentsStar Health.The vision withwhich we wentinto businessOur senior management team includes ourfounder Mr. V Jagannathan, Dr. S Prakashand Mr. Anand Roy, who have been withthe company since the first year followinginception.They are driven by a vision toprovide affordable and innovative health caresolutions.Driven by a philosophy based arounda ‘family culture’, balancing the bestof professional excellence withoutcompromising the personalised humantouch.Catalysed by a commitment to share ourprosperity with all stakeholders.The result of this differentiated resolution– with no reference to revenue growth,margins or Return on Capital Employed –has helped the company emerge as one ofthe largest retail standalone health insurancecompanies in India today.

Star Health and Allied Insurance Co. Ltd. Annual Report 2020-21Success driverStar Health issynonymous withHealth Insurance22

23Corporate overviewStatutory ReportsFinancial StatmentsOverviewTrust constituentsOutcomesIn the course of the 15 years sincewe went into business, the biggestasset that Star Health has created anintangible strength that does not evenfigure on the company’s BalanceSheet.Over the last decade-and-a-half,Star Health’s brand recall has beeninfluenced in various ways.The outcomes of the brand trust isreflected in the company’s RetailHealth segment leadership in thegeneral insurance industry acrossIndia.The biggest asset created by thecompany is the recall of the StarHealth brand among thousands ofcustomers across India.During the last decade-and-a half,Star Health has been described invarious ways and tongues. However,each of these responses haseventually come to mean: a trustedbrand, health insurance specialist,personalised attention and a cultureof caring.This recall has been manifested invarious moments of truth – momentsof engagement when the companyinterfaces with the customer –when the company has selected tolisten, advise, guide and handholdcustomers towards making the rightdecision. The result is a generalconsensus: ‘Star Health will sell usonly what will be in our best interest.’31.30%, market share inRetail Health GWPalone across thegeneral insuranceindustryThe Company is easy to reach,whether it is the website or its 737offices in 26 states and 4 unionterritories across the vast Indianlandmass.The Company communicates in alanguage that is simple and friendly,making it possible for customers tounderstand.The Company provides an extensiverange of policies to select from,virtually customised around everypossibility, age and economicbackground.The Company services claims withspeed and sensitivity, standing by therelatives of its customers in their hourof distress and anguish.The Company’s representatives havebeen trained to advise only in thecustomer’s interest, convinced thatthis will widen the company’s brand,accelerate sales of more policies andserve mutual benefit and our agentspresent all over the country act asambassadors of the Company.16%, market share inthe Overall HealthGWP (Retail Group)across the generalinsurance industry4.71The brand has grown year-on-year,irrespective of some of the mostchallenging economic meltdowns,slowdowns and lockdowns during theperiod.The Company’s persistency rateshave been acknowledged among thebest in India’s insurance sector.The Company’s business growth hasbeen reinforced by a consistent inflowof customers seeking to port theirexisting health insurance policy toStar Health.The result is that a Star Heath policyis a reflexive action across a numberof points in an individual’s life –marriage and the birth of children.The Company accounts for nearlya third of India’s retail gross writtenpremiums alone across the generalinsurance industry.Making Star Heath’s insurance policysynonymous with security and wellbeing.%, market share ofthe overall generalinsurance industry59.50%, market shareamong standalonehealth insurers(SAHI)

Star Health and Allied Insurance Co. Ltd. Annual Report 2020-21Human capitalAt Star Health, ourprincipal competitiveadvantage is derivedfrom our talent capital24

25OverviewAt Star Health, we are increasinglyrecognised among the mostsuccessful standalone healthinsurers in India. We believe thatthis position has been achieved bythe virtue of having built among thelargest and richest knowledge poolswithin the sector, extending across arange of capabilities. Our knowledgepool comprises attributes in theareas of effective communication,interpersonal relationships,business acumen, belongingness,entrepreneurial drive, passionfor excellence, responsiveness,customer-centricity and customersensitivity.The domain knowledgeand functional competenciescomprise underwriting skills, salespitch, claims processing, medicalexpertise, analytical skills, businessanalytics, market research andproduct innovation. The ability toshare knowledge has helped liberateknowledge from select pockets intoan overarching environment with aspecialised understanding of medicalrealities leading to health insuranceneeds.CultureStar Health’s competitiveness hasbeen derived from its family culture,which has celebrated collaborativeworking, caring, fairness, respectfor dignity and ethical integrity. Theresult is that Star Health is less animpersonal business organisationCorporate overviewStatutory Reportsas much as it is a bonded teamin the pursuit of a larger goal toeconomically protect customers inthe event of medical emergencies.The effectiveness of the culture isreflected in the company’s high talentretention, helping effectively retainknowledge and experience.Financial StatmentsThe Company’s talent profilecomprises medically qualified andtrained doctors who facilitate productdevelopment in the areas of cancerand cardiac care, providing coverfor people with cancer, surgery formorbid obesity and payment of donorexpenses for organ transplants.These professionals facilitate medicalunderwriting, claims managementwith hospitals, fraud detection cummitigation as well as grievancehandling.of an engagement ease. Thisease is influenced by a strategicorganisational clarity, engagementin a goal that takes humankindahead, equitable employee treatment,performance appraisal transparency,fair remuneration and deploymentof technology-aided tools thatenhance operational efficiency. TheElectronic Work Diary for employeeshas enhanced transparency inday-to-day workflows. Besides,a modernised human resourceengagement process - EmployeeSelf-service portal, Online Attendance& Leave Management, Payroll,Reimbursements, Recruitment,Joining formalities, Onboarding,Performance Management Systems,Rewards & Recognition Programs,Structured exit formalities, MISreporting, analytics etc. – havestrengthened talent retention.Value packageProtectionInformed engagementStar Health’s talent retention strategycomprised morale building throughan attractive rewards and recognitionprogramme, which compriseda year of employee initiatives,employee engagement activities,compensation & benefits structure,career progression, employee welfareprogrammes, loan schemes andESOP.Ease of engagementAt Star Health, we have attractedand retained talent on the basisDuring the pandemic, the companyprotected its talent capital throughthe flexibility of working from home,WFRL and hybrid attendance.The company redefined its workculture (New Code of Work)comprising supportive policies toenhance morale, productivity andperformance through a strengthenedIT infrastructure, learning &development activities, higherengagement levels, process support,guidelines and WFH etiquette.

Star Health and Allied Insurance Co. Ltd. Annual Report 2020-21CaringStar Health launched Talk to Star app,Covid advisory helpline and emotionalwellness helpline for employeesand family members to seek advicefrom doctors on health issues;Covid management and medicalcounselling helped the companyevaluate emotional challenges andprovide support.Gender-agnostic recruiterThe company’s recruitment ofwomen increased year-on-year inthe two years ending FY2020-21from 3077 in FY2018-19 to 3477in FY2019-20 to 3852 in FY202021. The proportion of women in thecompany was around 27% during theOutperformanceyear under review, a reflection of itsfairness in recruitment and gendersensitive policies.Training and skill renewalThe company is strengthening itspositioning as a company that tookthe skills and competencies of itsemployees ahead through continuoustraining. The training programmesconducted comprised programmesthat focused on induction, refresher,process, product launch, regulatory,bridge gap, leadership and skilldevelopment. Even as the numberof employees increased 30% acrossthe two years ending FY2020-21, thequantum of person-t

health insurance provider. In fifteen years, Star Health is India's largest and trusted standalone health insurance provider. Giving millions of its customers more than just a health insurance policy. Providing them with a peace of mind instead. Corporate snapshot Star Health and Allied Insurance Co. Ltd. Annual Report 2020-21 08