Anil Ambani owned Reliance Capital has received the final approval from the insurance regulator IRDAI on Wednesday to float a stand alone health insurance company Reliance Health Insurnace.
“Reliance Health Insurance Limited, a Health Insurance Company, promoted by Reliance Capital Limited (100% wholly owned), has been registered as a Health Insurer for conducting Health Insurance business, under Section 3 of the Insurance Act, 1938 with the Authority. The Certificate of Registration (Form – IRDA/ R3) has been granted by the Authority on 03rd October, 2018. With this registration, the total number of Standalone Health Insurers registered with the Authority has gone up to seven,’’ said IRDAI.
With the addition of Reliance Health Insurance, there are now 34 general insurance comoanies in the country.
Earlier, Anmol Ambani, Executive Director, Reliance Capital had said “Traditionally, heath insurance was part of our general insurance set-up. But to create retail focus we are setting up a standalone health insurance company.” said Anmol is the eldest son of Reliance ADAG Chairman Anil Ambani.
He had alluded to three factors — changing demographics (a younger India with higher income, higher assets, and more financially aware), rising cost of healthcare, and an increase in lifestyle-related ailments, which indicate significant growth potential in retail health insurance.
The health insurance company will use technology to connect with customers and distributors to leapfrog competition, he added.
The domestic health insurance space, that has been witnessing a very high growth of over 40 per cent in recent years, is now expecting couple of more players including an insurer focussing on dental insurance, with funding from the private equities.
The company said health insurance in India has been amongst the fastest-growing insurance sectors, rising at 20 per cent annually and is expected to double to over Rs 1,00,000 crore by 2021.