Life Insurance Corporation of India (LIC), a state-backed life insurer, is eyeing acquisitions to enter the health insurance market, reported the Times of India, citing LIC MD and CEO Siddhartha Mohanty.
During the company’s financial results announcement for the first quarter, Mohanty expressed the corporation’s intent to purchase an existing health insurance company within the current financial year.
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He said: “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.”
With more than 1.41 million agents, LIC has one of the largest agency forces globally.
Citing sources, the publication said that these agents, which are currently distributing health insurance products for other private companies, are expected to transition to selling LIC’s health insurance offerings, as regulations allow them to work for both life and non-life insurance companies.
The health insurance sector is increasingly seen as a ‘pull’ product, particularly among younger consumers actively seeking coverage.
This trend presents a significant opportunity for LIC’s agents to tap into the growing demand for health insurance, which is also anticipated to have a positive impact on the life insurance business.
Currently, the Indian market features five established stand-alone health insurance companies: Star Health & Allied Insurance, Niva Bupa, Aditya Birla Health Insurance, Care Health Insurance and ManipalCigna Health Insurance.
Additionally, the regulator has granted permission to two new health insurers, Galaxy Health and Narayana Health.
LIC reported 9.6% year-on-year growth in net profit for the June quarter (the first quarter of fiscal year 2025) with earnings reaching Rs104.61bn, up from Rs95.44bn in the corresponding period last year.
The total premium income for the quarter increased 15.7% to Rs1.13trn, compared with Rs983.63bn in the previous year’s quarter.
