It reads a bit ironic, yet, it sounds sweet. How else could one view this? Well, two former heads of public sector United India Insurance Company Ltd have now come on board to guide the Venu Srinivasan-led industrial group in Chennai (once a part of the erstwhile TVS group) into the health insurance space.
A travel down memory lane will put things in perspective. The TVS group was in the insurance space through Madras Motor & General Insurance and was forced out of the field when the insurance industry was nationalised. Post-nationalisation, Madras Motor was merged into United India Insurance.
In the post-liberalisation era, Sundaram Finance, initially promoted by Madras Motor, had launched Royal Sundaram Insurance, a general insurance company. And, now, V. Jagannathan and G. Srinivasan, who held top posts at the United India Insurance, are busy guiding the Venu Srinivasan-led industrial group into insurance. Galaxy Health Insurance Co Ltd, the new addition to the Indian health insurance space, is promoted by Venu Srinivasan and his family and Jagannathan, former CMD, United India Insurance Co, and the founder of Star Health & Allied Insurance, is the co-promoter. G. Srinivasan, another former head of United India Insurance, has been roped in as the MD & CEO of Galaxy Health Insurance.
Significantly enough, this standalone health insurance company, established by Venu Srinivasan’s family and Jagannathan, arrives on the scene a few months after the four families (forming part of the erstwhile TVS group) have formally gone their separate ways through a legal settlement. It is also an indication that the constituent-companies of the erstwhile TVS group are breaking out to explore the freedom of opportunity in the changed context post their legal separation.
In March this year, IRDAI, the insurance regulator, granted a licence to Galaxy Health Insurance Co Ltd (formerly known as Galaxy Health & Allied Insurance Co Ltd) to function as a standalone health insurer.
Getting the nod
Sai Satish, son of promoter Jagannathan and a renowned cardiologist (a pioneer in the field of non-surgical heart valve repair/replacement procedures), will be the non-executive chairman of the company. The board will also include Sudarshan Venu, son of Venu Srinivasan and managing director, TVS Motor Co. He is also the managing director of TVS Holdings Ltd, the holding company and chairman, TVS Credit Services, the non-banking finance arm of the group.
Former head of a public insurance company, Jagannathan took everybody by surprise when he founded a standalone health insurance company many summers ago. That he exited fully from Star Health Insurance, which he founded, however, a different story. Even as speculations were rife on his next move, Jagannathan joined hands with Venu Srinivasan family to float a new insurance company. The Jagannathan family, it is gleaned, is the majority shareholder in the new alliance. At the moment, two erstwhile TVS group families – Venu Srinivasan and Sundaram Finance group – are in insurance business. Besides them, one more well-known name from Chennai – the Shriram group – too in the insurance business, has both life and non-life insurance firms.
G. Srinivasan, managing director, Galaxy, has indicated that the first product launch from the company could happen any time soon. If one were to go by his words, Galaxy would go in for a holistic approach, with focus on the right product and service, to draw customers. Technology use will be a fulcrum around Galaxy’s bid to woo customers. The newly-formed venture will also leverage the brand equity of the Venu Srinivasan group to push its health insurance products, he says. Galaxy Health is set to offer comprehensive health, personal accident and travel insurance products tailored to meet the evolving needs of Indian customers, leveraging technology to a great extent.
The health insurance market in India stood at Rs1.17 lakh crore in 2023-24, and is growing at a CAGR of 20 per cent. “Galaxy Health aims to have a significant market share in the health Insurance industry and contribute to the regulator’s vision of health insurance for all by 2047,” the company said in a statement.
The health insurance space – a growing one, at that – is set for an exciting competition in the days to come.