According to the insurance statistics handbook of the Insurance Regulatory and Development Authority of India (Irdai), Star Health and Allied Insurance Co. Ltd’s claim ratio stood at 66.4% in 2023-24, meaning it paid out ₹66.5 towards claim settlements for every ₹100 premium collected. This is higher than that of other stand-alone health insurers, with a claim ratio of 63.6%, but lower than that of general and health insurers, whose ratio stood at 82.5%.

Despite its dominant position, Star Health stock has struggled since its listing in December 2021, falling 62% to ₹353. So, what’s impacting its performance? Let’s break it down.

Market leader

Star is the second-largest…