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TVS Group enter Rs 1 lk-cr health insurance market with Galaxy.

The Health premium has already attained Rs 98,716 crore between April-February period of FY2023-24.

Written by Thelearnvine

Competitiveness is hotting up in the expanding health insurance market. After Narayana Hrudayalaya, Chennai-based TVS firm controlled by Venu Srinivasan has forayed into the Rs one lakh billion health insurance industry.

Galaxy Health and Allied Insurance Organization, a stand-alone health insurer, created by TVS Group and V Jagannathan, who had earlier formed Star Health Company, has acquired the license within the lowest feasible period from the Insurance Regulatory & Development Authority of India (IRDAI).

The IRDAI, at its 125th board meeting held last week, has awarded license to Galaxy Health and Allied Insurance to carry out business in India. This is the sixth new license given by the IRDAI in roughly one year in life, non-life and health category, according to IRDAI.

Galaxy Health and Allied Insurance is a joint venture between Jagannathan’s family comprising his wife and son Dr Sai Satish, a globally recognized senior interventional cardiologist headquartered in Chennai and TVS group, which would be the largest stakeholder in the firm.

Jagannathan has recruited in previous Star Health Chief Executive Officer (CEO) Dr S Prakash as the CEO of Galaxy Health Insurance. TVS Motor Company, Sudarshan Venu, Managing Director will be the chairman of the new joint venture,.which will have a start-up fund of roughly Rs 200 crore.

Galaxy Health Insurance will have an all-India emphasis from the outset and several novel health insurance concepts for the clients, claimed an insurance source.
Previously the IRDAI had issued license to Narayana Health Insurance Limited formed up by Bangalore-based multispecialty hospital chain Narayana Hrudayalaya Ltd.

Other freestanding companies in the market are Care Health, Niva Bupa, Star Health,Aditya Birla Health and Manipal Cigna.

Post-Covid, the health insurance market has been witnessing a phenomenal increase, overtaking the formerly dominating motor insurance category. With a growth rate over 30 per cent, health insurance has emerged as the market with the greatest growth in the business.

It is predicted that overall health insurance premiums would reach Rs 1 lakh crore in the current financial year, a substantial rise from the Rs 90,667 crore reported previous year.

Health premium has now topped Rs 98,716 crore during April-February period of FY2023-24.

With the significant development experienced in the health insurance industry, numerous other firms including Apollo Hospital, which had already quit the company before, are examining the potential of establishing up health insurance businesses to benefit on this developing market.

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