Chennai-based Galaxy Health Insurance has announced a strategic expansion into the travel insurance segment, marking a significant diversification for the standalone health insurer. The company's Managing Director and Chief Executive Officer, G. Srinivasan, revealed the plans to reporters in Chennai on Monday, stating that the firm is currently working on the operational details for this new venture.
Ambitious Growth Targets and New Product Launch
Alongside the expansion news, Srinivasan shared impressive financial aspirations. He stated that since its launch last year, the company has achieved a Gross Written Premium (GWP) of ₹85 crore. Looking ahead, Galaxy Health Insurance is targeting a substantial increase, aiming for a GWP of ₹400 crore by the financial year 2026-27 (FY27).
In a related development, the insurer also launched its twelfth product, named 'Galaxy Twin 360'. This new offering is designed as a comprehensive plan that integrates extensive inpatient coverage with high-value outpatient (OPD) benefits and access to wellness services, creating a more holistic health protection package for policyholders.
Navigating the GST Challenge
When questioned about the impact of the Goods and Services Tax (GST) on the insurance sector, Srinivasan provided a crucial insight. He emphasized that the impact of GST on standalone health insurance companies is significantly higher compared to general insurance companies.
Elaborating on the financial effect, he added, "The impact has been roughly assessed at 5%–6% of the premium on the bottom line." This statement highlights a key operational and profitability challenge faced by specialized health insurers in the current tax regime, which could influence pricing and product structures in the future.
The company's move into travel insurance represents a logical step to diversify its revenue streams and build a more robust portfolio. This expansion, coupled with its aggressive premium growth target and innovative product launch, positions Galaxy Health Insurance as a dynamic player aiming for a larger share of India's insurance market.
