Siddarth Mohanty, MD &CEO, LIC
Siddartha Mohanty, MD &CEO, LIC, said, “Yes , we are now actively searching for an Indian health insurer where we can pick up a large stake but less than 50 per cent. We will not run the company on day- to- day basis but will have a say in the management’’
Mumbai: Life Insurance behemoth Life Insurance Corporation(LIC) has intensified its search for a suitable Indian health insurer partner where it can pick up a controllable stake but less than 50 per cent.
Confirming the development, Siddartha Mohanty, MD & CEO, LIC, said, “Yes , we are now actively searching for an Indian health insurer where we can pick up a large stake but less than 50 per cent. We will not run the company on day- to- day basis but will have a say in the management.’’
“Any stake beyond 50 per cent in any company by the LIC will bring it under government regulations,’’ Mohanty added.
Industry analysts say, state owned LIC is looking for stake of more than 26 per cent in an Indian health insurance company.
Currently, there are six standalone health insurance companies – Star Health & Allied Insurance, Niva Bupa Health Insurance, Care Health Insurance, Aditya Birla Health Insurance, ManipalCigna Health Insurance, and Narayana Health Insurance. The regulator has also recently granted permission to Galaxy Health Insurance.
Mohanty has further clarified that LIC’s foray into health insurance has nothing to do with the proposed moves by the Indian government and insurance regulator IRDAI to allow composite license in the Indian insurance industry.
“We are not interested in floating a new health insurance company for which we have to apply for a separate license. LIC doesn’t need a composite license. Even if it is introduced, they will not opt for it,’’ he said.
“The health insurance sector has a lot of potential. Longevity is increasing, but diseases are also on the rise. Additionally, medical expenses are very high, so health insurance has significant potential. Less than 3 per cent of total healthcare expenses are currently covered by insurance,” the sources said.
On the government’s plans to further disinvest in LIC, Mohanty said, no such plans in this fiscal.
Earler, the corporation has modified its products in compliance with the provisions of IRDAI (Insurance Products) Regulations, 2024 and IRDAI Master Circular on Life Insurance Products.
The modified products/riders will be available for New Business from October 01, 2024.