Star Health & Allied Insurance Co. Ltd., a leading standalone health insurer, stated that customer trust and retention remained unaffected despite a recent data breach. While there are no financial impacts, it continues to investigate all potential areas of the breach, which occurred in September–October.

The breach reportedly occurred when the passwords of two external parties—a hospital and an agent—were compromised. While investigations are underway to determine whether this was a deliberate attack or a result of hacking, the company has already implemented several measures to prevent similar incidents in the future, Anand Roy, MD & CEO of Star Health told businessline during the launch of the company’s new ‘Super Star’ retail health insurance policy.

The breach raised industry-wide concerns about the growing risks of cyber attacks on insurance providers. Roy elaborated on the steps taken to enhance security, including tighter integration of security systems to reduce risks. Additionally, the company has updated its policies with new numbers, rendering compromised data obsolete. Other measures include strengthening firewalls, improving internal password protection, enhancing API-level security through rigorous testing, and carefully selecting and monitoring vendors.

The company spends about 1.5 per cent of its gross written premiums (GWP) annually on technology, including cyber security and associated areas, positioning itself as one of the highest tech spenders in the industry.

Despite the incident, the company reported no drop in customer retention. “There hasn’t been a single instance of a customer opting out due to the breach,” the official added. Call centre inquiries related to the breach were also minimal,” he said.

On the financial front, Star Health remains optimistic about growth prospects for the current fiscal. Having achieved a GWP of ₹15,250 crore in FY24, Star Health is forecasting an 18 per cent growth for FY25, with an expected GWP of close of ₹18,000 crore. As of November, the company is already on track, growing at 17 per cent, and anticipates reaching the 18 per cent target by the year-end.

Replying on pressures on the bottom lines during Q2 of this fiscal, he said a spike in claims was observed during the period. Health insurance companies typically see higher claims in the monsoon season, and this year’s extended monsoon period across India exacerbated the situation. While the increase in claims was notable, it was considered a normal occurrence for the industry, albeit more intense than usual.

Earlier, the Chennai-headquartered company introduced its new product, Super Star, following a successful test marketing phase conducted two months ago through its digital channels. This launch marks the beginning of its full market debut. “This is not an upgrade or variant of an existing product and is now available for the larger public,” he said.