LIC may enter health insurance segment

28 May 2024 , 12:11 PM

According to The Times of India, which cited LIC chairman Siddhartha Mohanty, the government-owned Life Insurance Corporation (LIC) is considering entering the health insurance market and is now evaluating possible acquisition opportunities. The action takes place in the midst of a plan to permit composite insurance providers on the market.

“We have completed some internal groundwork, and it is anticipated that the incoming government would approve composite licencing. LIC chairman Siddhartha Mohanty stated, “We are interested in health insurance and are also evaluating potential for inorganic expansion, notwithstanding our lack of experience in general insurance.

To cut costs and regulatory restrictions for insurance carriers, a legislative committee recommended in February 2024 that composite insurance licences be implemented. Currently, life insurance providers are limited to providing benefits related to extended health insurance. The Insurance Act would need to be changed in order for life insurance firms to provide hospitalisation and indemnity coverage.

The LIC’s move into health insurance should increase coverage.

Less than 2.3 crore health insurance plans covering roughly 55 crore individuals will have been granted by the end of 2022–2023 in India, indicating that the country’s insurance sector is still remarkably underdeveloped. Nearly 30 crore people were covered by government-sponsored programmes, and nearly 20 crore by group insurance.

Government and regulatory bodies are in favour of issuing more health insurance policies, and the arrival of LIC is anticipated to spur expansion in this industry. IRDAI data shows that during FY23, life insurers issued less than 2.9 lakh new policies, covering over 3 lakh lives.

For feedback and suggestions, write to us at [e-mail]

For opening a demat account click on: https://www.indiainfoline.com/

For doing stock trading & investments, go to: https://ttweb.indiainfoline.com/trade/Login.aspx

For loans, go to: https://www.iifl.com/