New Delhi, Nov 15 (IANS) The Life Insurance Corporation of India (LIC) is expected to enter the health insurance industry in 2025 by acquiring a stake in a standalone health insurance entity, that could significantly boost the market share of country’s largest insurer, according to a report on Friday.
According to GlobalData, India’s health insurance industry is expected to grow at a compound annual growth rate (CAGR) of 12.5 per cent from 1.3 lakh crore in 2024 to Rs 2.1 lakh crore in 2028, in terms of gross written premiums (GWP).
By capitalising on its existing customer base, the company’s expansion into the health insurance domain could significantly boost its market share in the insurance sector in the country, said GlobalData, a leading data and analytics company.
By acquiring a stake in a private, independent health insurance firm, LIC seeks to establish a strong foothold in the nation’s burgeoning health insurance industry, said Manogna Vangari, insurance analyst at GlobalData.
This strategy is consistent with LIC’s objective of retaining strategic participation while minimizing the risks inherent in majority ownership, Vangari added.
Last week, LIC MD and CEO Siddhartha Mohanty said the state-owned company will take a call on buying a stake in a standalone health insurer in the current financial year and “the groundworks are done”.
The government, along with the Insurance Regulatory and Development Authority of India (IRDAI) is keen to broaden the scope of health insurance, targeting universal coverage by 2047.
The entry of LIC into the health insurance arena is anticipated to significantly contribute to this initiative, given the corporation’s robust brand recognition and its expansive sales force, which exceeds 1.3 million agents, the report said.
“This strategic acquisition move of LIC is expected to be particularly fortuitous over the next five years, thereby increasing its market share over its competitors,” Vangari said.
Currently, there are seven standalone health insurance companies operating in the Indian health insurance market.
LIC reported a standalone net profit of Rs 7,621 crore for the July-September quarter (Q2) of the current financial year, which is 4 per cent lower than the corresponding figure of Rs 7,925 crore for the same quarter last year, according to a regulatory filing by the company.
Net premium income during the second quarter went up by 11 per cent to Rs 1.19 lakh crore, from Rs 1.07 lakh crore in the same period of the previous year.
–IANS
na/
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
