The Life Insurance Corporation of India (LIC), the country’s largest insurer, is planning to enter the health insurance market in 2025. This will involve acquiring a stake in a standalone health insurance company, which could significantly boost LIC’s market share. This move comes as India’s health insurance sector is expected to experience strong growth in the coming years.
According to GlobalData, India’s health insurance industry is projected to grow at a compound annual growth rate (CAGR) of 12.5%, increasing from ₹1.3 lakh crore in 2024 to ₹2.1 lakh crore by 2028. This growth is measured in terms of gross written premiums (GWP), which represents the total premiums written by insurers in the sector.
LIC aims to leverage its existing customer base and brand recognition to enter this booming market. With its expansive sales force of over 1.3 million agents, LIC has a strong foundation to drive health insurance sales. The company plans to acquire a stake in a private health insurer rather than take full ownership, a strategy that allows it to have a presence in the market while minimizing risks associated with majority ownership.
This move is also aligned with broader government objectives to increase health insurance coverage in India, with the goal of universal coverage by 2047. LIC’s entry into this space is expected to play a significant role in expanding health insurance access in the country.
LIC’s decision comes at a time when it is performing well in the life insurance sector. In its latest financial report, LIC announced a net profit of ₹7,621 crore for the July-September quarter, though this was 4% lower than the previous year. However, the company saw an 11% increase in its net premium income, which suggests healthy growth in its traditional life insurance business.
Overall, LIC’s planned expansion into health insurance is a strategic move to tap into a rapidly growing market, strengthen its position in the insurance sector, and align with national healthcare goals.
