Blitz Bureau
NEW DELHI: 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 November 15.
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.
