LIC Set to Enter Health Insurance Market – CEO Siddhartha Mohanty Confirms Expansion Plans

"LIC will not hold a 51% stake; we are exploring all possibilities," he said.

2 mins read

March 19, 2025

Aishwarya Kulkarni

Life Insurance Corporation of India (LIC) is gearing up to enter the health insurance sector, with acquisition talks in the final stages. CEO Siddhartha Mohanty confirmed on March 18, 2025 to a correspondent on CNBC -TV18,  that LIC is in advanced discussions to acquire a health insurer, marking a significant expansion into the healthcare segment. 

Speaking at the Global Conference of Actuaries, he emphasized that LIC’s entry into health insurance aligns with its strategy to diversify product offerings and expand its presence in the insurance sector, ensuring a stronger foothold in the rapidly growing healthcare protection market. This move is expected to solidify LIC’s presence in the insurance sector, leveraging its vast customer base and distribution network.  

 

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LIC is not seeking a majority stake in its planned health insurance acquisition, CEO Siddhartha Mohanty stated, without disclosing further details. "LIC will not hold a 51% stake; we are exploring all possibilities," he said. 

Currently, LIC offers life insurance, pension plans, and investment-linked insurance but lacks a health insurance portfolio. A potential stake purchase would position LIC against Star Health, Aditya Birla Health, Niva Bupa, and Care Health Insurance. 

Meanwhile, LIC is in discussions with RBI about issuing longer-term bonds, including 50-year and 100-year options. If LIC enters the health insurance space, policyholders could see some big benefits. With LIC’s trusted name, people might feel more secure choosing their plans. Competition could lower prices and improve coverage, making health insurance more affordable. LIC’s vast network ensures smoother claims, better service, and wider reach, especially in smaller towns. Their financial stability adds long-term reliability, pushing private insurers to enhance policies.

Essentially, LIC’s entry could make health insurance more competitive, trustworthy, and beneficial for citizens.

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