MUMBAI: The country’s largest standalone health insurer, Star Health and Allied Insurance, called for further reduction in distribution costs, including commissions, to make health insurance more sustainable. The company’s CEO, Anand Roy, said that while the current cap on management expenses stands at 35%, it should be reduced gradually by a percentage point every year. “We are among the few companies operating within the expense of management (EOM) limits,” Roy said, adding that “bringing this cap down over time is essential to bring down the cost of insurance.” He also called for GST waivers on health premiums for senior citizens and vulnerable groups and urged for greater regulation in healthcare delivery, which remains largely unregulated compared to the insurance sector.On medical inflation, Roy said that while the headline figure of 14%, which is always talked about in the industry, may not apply uniformly, it reflects the broad trend in the insured population. “For us, it may be closer to 8-10% depending on the hospital,” he said. He attributed rising costs to growing consumer preference for advanced treatments and high-end implants. Roy said moderate and regular hikes in premiums are inevitable but suggested discounts for customers maintaining good health as a way to keep premiums affordable. “Ideally, 2-3% of a family’s income should go towards health insurance,” he said, recommending higher allocations for those covering parents or in-laws.