New Delhi, November 15 (IANS). 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. This will help the country’s largest government insurance company to increase its market share. This information was given in a report released on Friday.
According to GlobalData, India’s health insurance sector is expected to grow at a compound annual growth rate (CAGR) of 12.5 per cent in GWP (gross written premium), from Rs 1.3 lakh crore in 2024 to Rs 2.1 lakh crore in 2028. .
The leading data and analytics company said that by leveraging its existing customer base, LIC’s expansion into the health insurance industry can significantly increase its market share in the insurance sector.
By acquiring a stake in a private, independent health insurance firm, LIC is looking to establish a stronger foothold in the fast-growing health insurance industry in the country, said Manogna Wangari, insurance analyst at GlobalData.
Last week, LIC MD and CEO Siddharth Mohanty had said that the company will decide on buying stake in a standalone health insurance company in the current financial year and the groundwork for the same has been completed.
The report said that LIC’s entry into the health insurance industry could also increase its market share in the insurance sector as the government insurer has a strong brand image and its extensive sales force, which is more than 13 lakh agents.
Currently, there are seven standalone health insurance companies operating in the Indian health insurance market.
LIC reported a net profit of Rs 7,621 crore for the July-September quarter of the current financial year, down 4 per cent from the figure of Rs 7,925 crore in the same quarter last year.
–IANS
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