Life Insurance coverage Company of India (LIC) is evaluating alternatives to enterprise into the medical insurance sector, with potential acquisitions being assessed, reported The Occasions of India, citing LIC chairman Siddhartha Mohanty.
The information coincides with the proposal for composite insurance coverage licences within the business.
Mohanty mentioned: “There may be an expectation that composite licences could also be permitted by the brand new authorities, and we have now accomplished some inside groundwork.
“Whereas we lack experience on the whole insurance coverage, we’re all in favour of medical insurance and are additionally contemplating alternatives for inorganic development.”
In February 2024, a parliamentary committee beneficial permitting composite insurance coverage licences, simplifying operations and lowering regulatory burdens for insurers.
Life insurance coverage suppliers are at present restricted to providing prolonged well being advantages, however not hospitalisation or indemnity protection, which might require modifications to the Insurance coverage Act.
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LIC’s entry into the medical insurance market is anticipated to increase protection in India.
As of the top of the 2022-2023 fiscal yr, lower than 23 million medical insurance insurance policies had been issued, masking round 550 million people.
Authorities-sponsored schemes and group insurance coverage insurance policies have offered protection for almost 50 million folks mixed.
Each authorities and regulatory our bodies are pushing for a rise in medical insurance coverage issuance, with LIC’s participation anticipated to spur development within the sector.
In accordance with the Insurance coverage Regulatory and Growth Authority of India (IRDAI), life insurers issued below 290,000 new insurance policies throughout the 2022-2023 fiscal yr, masking almost 300,000 lives.
This information follows LIC’s latest monetary replace, the place the corporate reported a 2% rise in web revenue to Rs137.63bn ($1.65bn) for the quarter ending March 2024, up from Rs134.28bn in the identical quarter of the earlier yr.
“Over the last yr, we targeted on making directional modifications in our product combine and enhancing margins within the enterprise. We’ve got greater than doubled our share of non-par enterprise inside our particular person enterprise. Now, we intend to focus our strategic interventions to maximise our market share throughout classes,” Mohanty added.
In March 2024, Narayana Well being, a healthcare supplier, introduced its intention to launch a medical insurance service by the primary quarter of FY 2025.
The corporate secured IRDAI’s clearance in January 2024 to foray into the medical insurance area.
