TVS Group enters booming Rs 1 lk-cr health insurance market with Galaxy

Competition is hotting up in the growing health insurance business. After Narayana Hrudayalaya, Chennai-based TVS group owned by Venu Srinivasan has forayed into the Rs one lakh crore health insurance business.

Galaxy Health and Allied Insurance Company, a stand-alone health insurer, set up by TVS Group and V Jagannathan, who had earlier founded Star Health Company, has received the license at the shortest possible time from the Insurance Regulatory & Development Authority of India (IRDAI). The IRDAI, in its 125th board meeting held last week, has granted license to Galaxy Health and Allied Insurance to carry out business in India. This is the sixth new license granted by the IRDAI in around one year in life, non-life and health segment, according to IRDAI.

Galaxy Health and Allied Insurance is a joint venture between Jagannathan’s family including his wife and son Dr Sai Satish, an internationally renowned senior interventional cardiologist based in Chennai and TVS group, which will be the majority shareholder in the company. Jagannathan has also roped in former Star Health Chief Executive Officer (CEO) Dr S Prakash as the CEO of Galaxy Health Insurance. Sudarshan Venu, Managing Director, TVS Motor Company, will be the chairman of the new joint venture, which will have an initial capital of over Rs 200 crore.

Galaxy Health Insurance will have an all-India focus from the beginning and many innovative health insurance ideas for the customers, said an insurance source.

Earlier the IRDAI had given license to Narayana Health Insurance Limited (Narayana One Health), set up by Bangalore-based multispecialty hospital chain Narayana Hrudayalaya Ltd or Narayana Health promoted by well-known cardiologist Devi Shetty. Other standalone players in the sector include Care Health, Aditya Birla Health, Niva Bupa, Star Health and Manipal Cigna.

Post-Covid, the health insurance sector has been recording a remarkable growth, overtaking the previously dominant motor insurance segment. With a growth rate exceeding 30 per cent, health insurance has emerged as the fastest-growing segment in the industry. It is expected that total health insurance premiums will surpass Rs 1 lakh crore in the current financial year, a notable increase from the Rs 90,667 crore recorded last year.

Health premium has already touched Rs 98,716 crore during April-February period of FY2023-24. With the robust growth witnessed in the health insurance segment, several other players including Apollo Hospital, which had earlier exited the business earlier, are exploring the possibility of setting up health insurance companies to capitalise on this burgeoning market.

Source: The Indian Express