LIC: Life Insurance Corporation of India (LIC) is expected to enter the health insurance industry by acquiring a stake in a standalone health insurance entity in 2025. 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 percent 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 in the health insurance industry can significantly increase its market share in the insurance sector.

Health Insurance Industry

Manogna Wangari, insurance analyst at GlobalData, said, that by acquiring a stake in a private, independent health insurance firm, LIC wants to establish a strong foothold in the fast-growing health insurance industry in the country. Last week, LIC MD and CEO Siddhartha Mohanty had said that the company will decide on buying a stake in a standalone health insurance company in the current financial year and the groundwork for this has been completed.

LIC and the Health Insurance Industry

The report said that LIC's entry into the health insurance industry can also increase its market share in the insurance sector as the government insurance company has a strong brand image and a large sales force of more than 13 lakh agents. Currently, seven standalone health insurance companies are 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, which is 4 percent less than the figure of Rs 7,925 crore in the same quarter of last year.