Indian life insurance companies are looking to branch out into the health space, according to local media reports.
Several firms have reportedly approached Indian regulator the Insurance Regulatory and Development Authority (IRDAI) for approval to sell indemnity-based health insurance products.
This comes months after International Adviser reported that India’s Life Insurance Council asked the IRDAI to reinstate its right to sell indemnity health cover.
Currently, the regulator allows only general insurers and health insurers to offer individual health products.
They must have a minimum tenure of one year and maximum of three years, provided the premium remains unchanged for the tenure.
Historical issues
In 2016, the IRDAI issued regulations barring life insurers from selling indemnity-based health insurance products, either as an individual or a group policy, and from offering single premium health insurance products under the unit-linked platform.
This means life insurers have to tie up with a general or health insurance company to provide such products.
But, according to the Indian newspaper Hindu Business Line, life insurers believe there is enough demand for more of these products as there are only a small number of health firms in the country.
Life insurance companies have requested that the IRDAI to review the ban.
IA has contacted the regulator to ask whether it has a comment on this issue or any future plans.
