India’s top government insurance firm, Life Insurance Corporation (LIC), is gearing up to offer health insurance. It’s eyeing acquisitions of smaller firms in the sector to make its mark.
This move comes as the government mulls allowing composite insurance firms in this arena. LIC admits it lacks expertise in general insurance but is keen on health insurance and exploring growth opportunities.
LIC acknowledges its limited experience in general insurance but expresses keen interest in venturing into health insurance. The company contemplates both organic and inorganic growth avenues to bolster its presence.
Composite License Proposal Gains Traction
A parliamentary panel in February 2024 proposed a composite license to streamline costs and compliance. Presently, life insurers can only provide long-term health benefits. Changes to the Insurance Act are needed for them to offer hospitalization and indemnity cover.
Government’s Push
Authorities aim to expand insurance coverage. LIC’s foray into health insurance is expected to significantly impact this drive.
In the financial year 2022-23 alone, life insurers issued 2.9 lakh new policies, extending coverage to roughly 3 lakh individuals, according to IRDA data.
India’s Insurance Landscape
India’s insurance scene is still nascent. By the end of 2022-23, only 2.3 crore health insurance policies were in force, covering 55 crore individuals. Most were government-backed or group schemes.
Boosting Coverage
Authorities aim to expand insurance reach. LIC’s foray could be a game-changer. In the financial year 2022-23, life insurers issued 2.9 lakh new policies, covering around 3 lakh people, per IRDA data.
Key Takeaway
LIC’s move into health insurance underscores the industry’s evolution, aiming to provide broader coverage and services to more citizens.
