Finshots Daily Will LIC change the health insurance market in India?
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Mar 21, 2025 The discussion delves into the implications of LIC potentially entering the health insurance market in India. It highlights the advantages of LIC's robust distribution network and innovative approaches. Concerns from existing providers about increased competition and profitability challenges are also addressed. The balance between positive changes and the hurdles facing the industry forms a key focus, making for a thought-provoking exploration of what this shift could mean for consumers and providers alike.
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LIC's Health Insurance Entry
- LIC's foray into health insurance involves acquiring a stake in an existing company, likely Manipal Cigna.
- They also might obtain a composite license to sell health policies directly, potentially limited to private sector insurers initially.
Health Insurance Complexity
- Health insurance requires specialized skills and infrastructure, unlike life insurance.
- LIC needs to invest in experts, illness calculation understanding, and relationships with healthcare providers.
Increased Penetration
- LIC's extensive distribution network, including agents, banks, and corporate agents, could boost health insurance penetration.
- This network could become a powerful channel for selling health insurance policies alongside life insurance.