LIC Eyes Health Insurance Foray Via Organic, Inorganic Routes | NDTV Profit Exclusive
The state-owned life insurance company is looking for a double-digit growth in the current fiscal.
Life Insurance Corp. aims to take advantage of the underpenetrated health insurance space and is prepared to explore both organic and inorganic routes for the segment, Chairperson Siddhartha Mohanty said on Tuesday.
There is a huge scope in the health insurance space as the coverage out of the total health expenditure is very less, Mohanty told NDTV Profit's Sajeet Manghat in an interview.
The company has some experience in health insurance products and the natural choice for everybody is that LIC should be in this health space. The country's largest insurer is internally working and is prepared for both organic and inorganic growth paths, according to Mohanty. "We are working internally on health insurance ahead of the composite licence being allowed."
After the listing of the insurance behemoth, there has been a directional change in its approach to marketing and product mix. "In March 2022, non-par share to annual premium equivalent was 7.12% and today, it stands at 18.32%. Going forward, our target is to take it to 20–25%," Mohanty said.
Every year, the insurance giant expects a 2–3% growth in a non-par segment, he said. "At the same time, our focus will be on the par segment because that is the major segment."
Siddhartha Mohanty, chairperson of LIC (Source: Pralhad Shinde/NDTV Profit)
The state-owned life insurance company is looking for a double-digit growth in the current financial year. The value of new business margins in the last fiscal was at 16.8% and it aims to be at par with private peers in terms of margin, according to the chairperson. "We are looking for a 2–3% growth in margin in FY25."
Mohanty exuded confidence that the life insurance company will be a significant player in the India growth story.
The company's profit increased rose 2.5% year-on-year to Rs 13,763 crore in the quarter ended March.
