LIC plans to buy a private health insurance company

livemint.com:

₹51 trillion and a market share of over 61.5% in life insurance, is keen to secure a composite licence—a licence planned to be introduced by the Insurance Regulatory and Development Authority of India (Irdai) that will allow an insurer to sell both life and non-life policies. “For LIC, this makes sense. The work is on internally.

The composite licence may take about 2–3 months and then, LIC may consider acquiring an established health insurance company and grow the business from thereon," one of the two executives cited above said on condition of anonymity. LIC submitted its health insurance plans to Irdai recently, but it does not involve any proposal for a merger with state-run general insurer, the people cited above said. “LIC is keener to acquire a standalone health insurance business.

There are multiple options being weighed on. One option before LIC is to take over one of the five standalone (health insurance) players, preferably one that has strong digital capabilities," said this executive. India's five standalone health insurers, all of them privately owned, are Niva Bupa Health Insurance Co.

Ltd, Aditya Birla Health Insurance Co Ltd, Care Health Insurance Ltd, ManipalCigna Health Insurance Co Ltd, and Star Health & Allied Insurance Co Ltd. Any standalone health insurer acquired by LIC will become the country's first state-owned standalone health insurer. The LIC executives said the state-run insurer plans to leverage its vast network and agency force of over 1.41 million to sell pure, traditional Mediclaim and health indemnity products after acquiring a readymade health insurance company.