Mumbai/IBNS: The Life Insurance Corporation of India (LIC) is planning to take the acquisition route to get into the health insurance business, the Times of India (TOI) reported, citing LIC’s MD and CEO Siddhartha Mohanty.
Siddhartha Mohanty said, during the announcement of LIC’s financial results for the first quarter, said that the company is looking at an acquisition during the current financial year.
“Rather than set up a vertical for insurance, we felt that we can acquire a company which will allow us to start selling health insurance across the country,” Mohanty was quoted as saying by TOI.
The Mumbai-headquartered Central Public Sector life insurance company has over 14.1 lakh agents, which is among the largest agency force among insurance companies worldwide, as per reports.
TOI reported quoting sources that most of the LIC’s agents are already distributing health insurance for other private companies as regulations permit an agent to work for life and non-life companies, and these agents are expected to switch to selling company’s products.
Health insurance is increasingly becoming a ‘pull’ product, with many young buyers actively seeking coverage, which presents an opportunity for agents to engage with potential customers, TOI reported citing its sources.
The availability of health insurance is expected to benefit the life insurance business as well, TOI reported.
There are five established standalone health insurance companies in India at present — Star Health & Allied Insurance, Niva Bupa, Aditya Birla Health Insurance, Care Health Insurance, and ManipalCigna Health Insurance, while the regulator has recently granted permission to two other health insurers — Galaxy Health and Narayana Health.
