London-based Prudential is looking to set up a health insurance venture in India. The company, which is in a partnership with ICICI Bank for its life insurance and asset management business, may need to look for another partner as the latter has a non-life venture — ICICI Lombard General Insurance.
There are five standalone health insurance companies in India — Aditya Birla, Care, Manipal Cigna, Niva Bupa, and Star Health. Health insurance is the fastest-growing segment in non-life, and its share has risen from 29.5% in FY231 to 35% in FY23. In a recent investor call, Anil Wadhwani, CEO of Prudential, said, “India is clearly an exciting market, with a large population… there is significant under-penetration.”
Besides the growth opportunity, a presence in health insurance supports the life business by providing information on health. It also ensures that a line of business is not impacted by market performance or interest rates.