“LIC could have some stake, which is not going to be a majority however will nonetheless give it a say in administration,” an trade supply stated, including that the company’s curiosity is in sustaining strategic involvement within the medical insurance firm.
India has seven standalone medical insurance firms, together with the listed Star Well being Insurance coverage.
LIC is seeking to get into the quickly rising medical insurance market, which it believes is poised to broaden additional as healthcare prices proceed to rise.
“Medical health insurance holds nice potential as longevity and demanding well being bills improve. Total healthcare prices lined by insurance coverage are solely 3%,” stated one other supply.
The medical insurance sector is now the fastest-growing section within the nation’s insurance coverage trade, pushed by rising healthcare prices and growing consciousness of the necessity for protection.Whereas a Parliamentary Committee has advisable issuing a composite license for an insurer to undertake life, basic or medical insurance underneath one entity, LIC is not going to require a composite license to purchase a stake in a medical insurance firm.