Universal Sompo Health Portfolio Surges 8% Post GST Cut; Targets ₹6,000 Cr
Overview
Universal Sompo General Insurance's health portfolio jumped over 30% post GST rate cut, up from 22%. MD Sharad Mathur highlighted the positive impact on demand. The company aims for ₹6,000 crore premium income in FY26, emphasizing sustainable double-digit growth. Progress on the Bima Sugam insurance marketplace and customer-centric reforms were also discussed.
Universal Sompo General Insurance has reported its health portfolio now constitutes over 30% of its total business, a significant climb from approximately 22% following the recent reduction in Goods and Services Tax (GST) on health insurance premiums. Managing Director and Chief Executive Sharad Mathur stated the tax cut directly stimulated consumer demand for these products.
The insurer has set an ambitious target of ₹6,000 crore in premium income for the fiscal year 2026, representing an increase from the ₹5,000 crore earned in the prior fiscal year. Mathur emphasized a strategic focus on achieving sustainable, double-digit growth, prioritizing long-term stability over aggressive top-line expansion.
Bima Sugam Progress
Mathur also provided an update on Bima Sugam, the proposed comprehensive insurance marketplace envisioned as an 'Amazon for insurance.' He described its development as a phased approach, incorporating stringent measures for governance, cybersecurity, and data protection. The Insurance Regulatory and Development Authority of India (IRDAI) will initially oversee core insurance activities on the platform, with provisions for future integration of ecosystem services under their respective regulatory frameworks.
Growth and Sector Strategy
The company achieved approximately 11% growth by December and anticipates concluding the current fiscal year with around 15% growth. Universal Sompo aims to expand the overall insurance market in India, rather than solely competing for existing premiums, focusing on increasing penetration in underinsured vehicles and dwellings.
Cost Management and Vision
To mitigate the impact of losing input tax credit due to the GST cut, Universal Sompo is optimizing operational expenses. This includes rationalizing office costs and investing heavily in training internal talent sourced from top institutions. The company's long-term vision aligns with 'Insurance for All by 2047,' advocating for increased investment in digital insurance infrastructure, interoperable data systems, and nationwide insurance literacy campaigns, especially in rural areas.
