Star Health braces for mid-to-high single digit premium hikes in FY27 as medical inflation pressures the health insurance sector.

Star Health braces for mid-to-high single digit premium hikes in FY27 as medical inflation pressures the health insurance sector. The insurer's MD noted customers are increasingly willing to absorb annual increases given rising healthcare costs. The company is launching affordable health plans targeting Tier 2 and Tier 3 markets with restricted hospital networks and preferred pricing partnerships. Star Health's combined ratio improved to 95.7% in Q4FY26 from 98.4% year-over-year, while retail health premiums grew nearly 20%. The insurer is strategically shifting focus from high-fraud regions toward southern markets like Telangana and Andhra Pradesh, where growth has been strong. Technology investments are expected to reduce operating expenses and improve claim management through enhanced fraud controls and tighter hospital pricing arrangements.