# Star Health Seeks Expense Cap Exemptions for Mandated Insurance Products Star Health urges regulator to exclude government-mandated schemes from management expense limit calculations. - **Source:** [mint - companies](https://www.livemint.com/rss/companies) - **Published:** 2026-10-28 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/58490041-4a06-422e-91bf-db24590b72c4 ## Regulatory Expense Cap Proposal Star Health is requesting that the insurance regulator, Irdai, exclude regulation-driven covers from the base used to calculate Expenses of Management. During a post-earnings call, management argued that including government-sponsored health schemes and motor third-party insurance distorts the true cost of selling retail policies, as these mandated products operate differently. ## Impact on Expense Ratios The proposed exclusion is particularly critical for multi-line general insurers who handle significant volumes of crop, motor, and government-mandated business. Star Health believes that without this carve-out, the expense ratios for these companies would be unfairly judged, as these low-cost, high-volume mandated covers do not reflect standard retail operational spending. ## Distribution Reform Support Despite concerns over expense caps, Star Health supports Irdai’s broader distribution reforms. CEO Anand Roy highlighted that linking commissions to renewals is a positive step to reduce churn between insurers. The company believes its current distribution footprint is well-aligned with proposed requirements, such as higher commissions for rural and smaller town business. ## Operational Resilience Strategy Star Health maintains a resilient business model, with over 90% of retail business generated through its own agents and direct-to-customer channels. In the first half of the year, the agency channel contributed 85.3% of gross premiums. The company added 39,000 agents, bringing its total network to 8.7 lakh active insurance representatives. ## Financial Performance Overview The company reported a strong September-quarter performance, with profits tripling to ₹265 crore from ₹80 crore the previous year. Underwriting profit reached ₹99 crore, a significant turnaround from the ₹40 crore loss recorded in the same period last year. Retail fresh premiums also rose by 36%, reaching ₹1,630 crore during the first half. ## Agent Productivity Focus Management is actively working to protect agent earnings by focusing on higher productivity under the proposed regulatory framework. Anand Roy noted that individual agents remain the most rewarded distributors. The company aims to maintain this momentum while navigating the potential shifts in commission structures and regulatory scrutiny regarding digital sales journeys. ## Market Growth Outlook Star Health anticipates a slowdown in headline growth during the second half of the year. This is attributed to the base effect from last year’s surge in demand following the GST exemption on retail health premiums. Despite this, the company maintains a long-term goal of growing fresh business by more than 20%. ## Industry Regulatory Context The consultation paper released by Irdai on September 23 has sparked industry-wide debate. While Star Health is openly supportive of many reforms, other players like ICICI Life have expressed concerns regarding significant commission cuts on credit life covers. Insurers are currently awaiting final regulations before making definitive changes to their premium pricing models. ## Sources covering this story - https://www.livemint.com/companies/news/star-health-wants-mandated-products-kept-out-of-irdai-s-expense-cap-11793178455919.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._