LIC mulls entering health insurance, explores acquisition opportunities
Life Insurance Corporation (LIC) is contemplating a foray into the health insurance sector and is currently assessing potential acquisition prospects, reported The Times of India quoting LIC chairman Siddhartha Mohanty. The move comes amid a proposal to allow composite insurance companies in the sector.
«There is an expectation that composite licences may be permitted by the new govt, and we have done some internal groundwork. While we lack expertise in general insurance, we are interested in health insurance and are also considering opportunities for inorganic growth,» said LIC chairman Siddhartha Mohanty.
In February 2024, a parliamentary committee recommended the implementation of composite insurance licenses to reduce expenses and regulatory burdens for insurance providers. At present, life insurance companies are restricted to offering extended health insurance benefits. Enabling life insurance companies to furnish hospitalization and indemnity coverage would necessitate an amendment to the Insurance Act.
LIC's health insurance foray expected to boost coverage.
India's insurance market remains significantly under-penetrated, with less than 2.3 crore health insurance policies issued by the end of 2022-23, covering approximately 55 crore individuals. Government-sponsored initiatives covered nearly 30 crore individuals, while group insurance accounted for nearly 20 crore. Both the government and regulators are advocating for increased issuance of health insurance policies, with the entry of LIC expected to
