Life Insurance Corporation of India (LIC) is poised to make a decision regarding its entry into the health insurance sector by the end of March, according to the company’s chief executive officer.
LIC plans to acquire a stake in an existing health insurance provider, with the goal of competing more effectively against the established private insurers currently dominating the market. The company has made it clear that it is not seeking a majority stake in any potential acquisition.
“I am very much hopeful that within this financial year, before 31st March, some decision can be taken,” said Siddhartha Mohanty, the chief executive officer of LIC, India’s largest insurer, on Tuesday.
Competition within India’s insurance market has intensified in recent years as private companies have expanded their offerings to meet the growing demand for health insurance.
LIC currently offers life insurance policies, pension plans, and investment-linked insurance products but does not provide health insurance. Its entry via acquisition would position the company to compete with major players such as Star Health Insurance, Aditya Birla Health Insurance, Niva Bupa Health Insurance, and Care Health Insurance.
In addition to the potential health insurance stake, LIC is also in discussions with the Reserve Bank of India (RBI) about the issuance of longer-term bonds. The company is looking at instruments with maturities of up to 50 or even 100 years.
CEO Mohanty stated that “Our people are discussing this from time to time with RBI, and they are also considering this.”
