Page 12 - The Insurance Times September 2025

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Cancer treatment costs driving Indian families to Star Health Q1 profit de-
ruin: Experts clines 17% to Rs. 262 crore

Rising cancer treatment costs are pushing Indian families into financial dis- amid regulatory penalty
tress, with annual out-of-pocket expenses averaging Rs. 3.3 lakh, experts Star Health and Allied Insurance re-
said at a Kolkata summit on cancer care affordability. Aside from high medical ported a 17% decline in its Q1FY26 net
bills for chemotherapy, surgery, and radiation, patients also bear heavy non-
profit at Rs. 262.5 crore, compared to
medical expenses-18.6% on accommodation, 17.9% on food, and 7.2% on
the previous year. The company's gross
travel.
written premium (GWP) rose 13%
India records 18.5 lakh new cancer cases annually with 9.1 lakh deaths. West year-on-year to Rs. 3,936 crore, with
Bengal alone sees 1 lakh new cases yearly. "Catastrophic health expendi- retail GWP showing a robust 18%
ture is a reality," said oncologist Dr. Soumen Das, who attributed the crisis growth, and new retail premiums up
to poor financing systems and skyrocketing drug prices. 25%.
Experts called for urgent policy interventions to improve affordability and
MD & CEO Anand Roy said the com-
reduce dropout rates. The high cost of treatment is causing many families pany has seen steady growth due to
to discontinue care midway, worsening outcomes and increasing mortality.
strategic underwriting and pricing im-
provements, along with enhanced
SBI General eyes Tier-III/IV He stressed the importance of right- claims service. However, the firm dis-
selling over mis-selling, especially in closed a cybersecurity incident in Au-
health insurance reach; the bancassurance channel, calling it a gust 2024 involving unauthorised ac-
mis-selling under focus "powerful" but often misused distribu- cess to certain data.

State Bank of India Chairman C.S. Setty tion method. Setty said SBI has While no legal proceedings have been
has called for stronger tie-ups between strengthened its internal ombudsman initiated, the insurer has since up-
health insurers and rural hospitals to system and investigates even look-up graded its information security sys-
expand access amid rising medical in- period complaints. tems. Additionally, Star Health has
flation. Meanwhile, SBI General MD & CEO made provisions for a Rs. 3.39 crore
Speaking at the launch of 30 SBI Gen- Naveen Chandra Jha said the dedi- penalty imposed by IRDAI in July 2025
eral Insurance health branches across cated health branches aim to build a for violations related to cyber and
Telangana and Andhra Pradesh, Setty more inclusive and customer-focused information security norms, as ac-
highlighted that outreach in Tier-III ecosystem. Setty also warned that knowledged in its quarterly financial
and Tier-IV towns will help realise without health insurance penetration, notes.
IRDAI's vision of "Insurance for All by India's demographic dividend risks turn-
2047." ing into a liability. ICMAI seeks cost audits

12 September 2025 The Insurance Times