Life insurers may soon sell health insurance

IRDAI is planning to allow life insurance companies to offer full-fledged health insurance policies, two people with direct knowledge of the plans said, in a move that will likely reduce premiums and increase access to affordable health cover.

An internal committee of IRDAI has been discussing the proposal and the regulator is likely to issue draft guidelines allowing life insurers to sell indemnity health insurance products.

“Life insurance companies inherently get more customers than health insurers in the retail space, which will help them get more people covered under medical insurance at more affordable premiums,” one of the two people cited above said.

“With captive customers, larger distribution networks and higher disposable cash, life insurers are well-positioned to offer health insurance products to a larger population at better rates,” said the second person.