Life Insurance Corporation of India’s (LIC) entry into the health insurance sector has been delayed due to expected regulatory and policy changes, as well as slow growth in the segment, according to its newly appointed Managing Director, R. Doraiswamy. Despite the delay, LIC remains interested in health insurance and is keeping “all options” open, including the potential introduction of composite licences.
Doraiswamy noted that the industry is in a phase of transition, with further reforms anticipated—such as the Insurance Amendment Bill currently pending in Parliament. LIC is open to acquiring a composite licence, which would allow it to offer life, general, and health insurance products under one entity. Until such provisions are in place, the insurer may consider acquiring a strategic stake in an existing health insurance company.
LIC has yet to finalize a target firm and continues exploring viable options. The idea of a strategic investment, originally considered under former MD Siddharth Mohanty in FY25, is still under review. Doraiswamy emphasized that any such move would require regulatory approval, especially if the stake exceeds the limits set under the current insurance laws, which LIC is governed by.
