State- run Life Insurance Corporation (LIC) is considering entering health insurance sector and is exploring acquisition opportunities. The move comes amid a proposal to allow composite insurance companies in the sector.
“There is an expectation that composite licenses may be permitted by the new government, and we have done some internal groundwork,” said LIC chairman Siddhartha Mohanty. He added that while they lack expertise in general insurance, they are interested in health insurance, and are planning for an inorganic growth.
Earlier in February, a parliamentary panel had suggested of introducing a composite insurance licenses, which would ultimately reduce costs and compliance burden for insurers.
Currently, life companies can only offer long-term benefit covers under health insurance. For life companies to provide hospitalisation and indemnity cover, an amendment to the Insurance Act would be required.
