V Jagannathan, the founder of Star Health and Allied Insurance Company, has stepped down from the company’s board, following his earlier resignation as chairman. The resignation comes at a time when the health insurance industry is facing challenges, including rising claims costs and a slowdown in premium growth. Star Health is one of India’s largest private health insurers, and the company is expected to announce a new chairman in the near future.
Resignation of V Jagannathan:
V Jagannathan, the founder of Star Health, has tendered his resignation from the company’s board with immediate effect. He had previously resigned as the chairman of the company in May 2023. Jagannathan played a crucial role in establishing Star Health in 2006 and served as its chairman and managing director until 2015, after which he became the non-executive chairman.
Reasons for Resignation:
The company cited “personal reasons” as the cause for Jagannathan’s resignation but did not provide further details. His departure comes amid challenges faced by the health insurance industry, including rising costs of claims and a slowdown in premium growth.
Challenges in the Health Insurance Industry:
The health insurance industry in India is currently grappling with several challenges. Rising claims costs have put pressure on insurers, affecting their profitability. Additionally, the industry has witnessed a slowdown in premium growth, impacting the overall financial performance of insurers. These challenges have necessitated strategic adaptations and effective leadership to navigate through the evolving landscape.
Star Health’s Market Position:
Star Health and Allied Insurance Company holds a significant position in the private health insurance sector in India, boasting a market share of around 15%. The company has enjoyed profitability over the years and has been recognized for its comprehensive health insurance offerings.
Search for a New Chairman:
Following V Jagannathan’s resignation, Star Health is in the process of identifying a new chairman to lead the company. The selection of a new chairman will be critical for ensuring the company’s continued success and growth in the face of industry challenges. Star Health is expected to announce the appointment of the new chairman in due course.
V Jagannathan, the founder of Star Health Insurance, has resigned from the company’s board for personal reasons, after stepping down as chairman. This development comes at a time when the health insurance industry is confronting challenges. Star Health, as a major player in the private health insurance market, will need to navigate through these challenges with effective leadership. The search for a new chairman is underway, and an announcement is expected soon to ensure the company’s continued growth and success.