Star Health Suffers Profit Dip Amid Cybersecurity Challenges

Star Health and Allied Insurance faced a challenging June quarter, recording an 18% decline in net profit to Rs 263 crore, according to the latest financial reports disclosed on Tuesday. This downturn emerged despite an increase in total income, which rose from Rs 3,692 crore to Rs 4,116 crore year-on-year.

In parallel, the company saw a marginal growth in gross written premiums, reaching Rs 3,605 crore in the quarter under review compared to Rs 3,476 crore during the same period last year. These figures reveal a mixed financial landscape as the insurer grapples with external pressures.

Compounding its woes, the Insurance Regulatory and Development Authority of India recently penalized Star Health with a Rs 3.39 crore fine and issued a warning for failing to adhere to cybersecurity guidelines. This penalty follows a significant cyberattack last year, which compromised customer data, casting a spotlight on the company's cybersecurity measures.

(With inputs from agencies.)