The announcement positions Narayana Health Insurance Limited as India's sixth standalone health insurance company, contributing to the growing landscape of health insurers. Further, the company's stock price witnessed a boost, reaching INR 1217.75, a 3.07% increase.
Leading hospital chain Narayana Health has secured approval from the Insurance Regulatory and Development Authority of India (IRDAI) to set up its wholly-owned subsidiary, Narayana Health Insurance Limited.
This regulatory nod allows the healthcare provider to diversify its operations into the health insurance sector through the subsidiary, offering integrated healthcare solutions.
The licence, subject to annual renewal as per IRDAI regulations, marks a significant move for Narayana Health. The announcement positions Narayana Health Insurance Limited as India's sixth standalone health insurance company, contributing to the growing landscape of health insurers. Further, the company's stock price witnessed a boost, reaching INR 1217.75, a 3.07% increase.
IRDAI, in a press statement, said, "Insurance Regulatory & Development Authority of India (IRDAI), in its 124th meeting held on 28 Dec 2023, has granted Certificate of Registration to a new health insurer, namely, Narayana Health Insurance Limited to carry health insurance business in India after a hiatus of 5 years. With this, the number of insurers operating in the health insurance segment has gone up to 6."
The Chairman of IRDAI, Debasish Panda, highlighted the recent entry of multiple new players into the insurance market during an event organised by the National Insurance Academy. This development is significant, given the prolonged gap of 12 years in the life sector and five years in the general insurance sector for new entrants.
The IRDAI has set ambitious goals for achieving 'Insurance for All' by 2047, and the entry of Narayana Health Insurance Limited aligns with this objective. However, the overall insurance penetration in India remains at 4%, with a reduction from 4.2% in 2021-22 to 4% in 2022-23, according to the IRDAI annual report.
In December 2023, Standalone Health Insurance Companies (SAHIs) experienced a notable 26.24% year-on-year growth in premiums, reaching INR 2,915.37 Cr compared to INR 2,309.35 Cr in December 2022.
Narayana Health, founded by renowned cardiac surgeon Dr Devi Prasad Shetty, operates a comprehensive network of 21 hospitals, heart centres, and primary care facilities across India.
With a strong presence in Karnataka and eastern India, the healthcare group manages over 5,859 operational beds through a combination of greenfield projects and acquisitions. Additionally, Narayana Health operates an international hospital in the Cayman Islands, offering specialised services, including cardiology, cardiac surgery, cancer care, neurology, and neurosurgery.
The IRDAI approval positions Narayana Health Insurance Limited to contribute to the evolving landscape of health insurance in India, providing innovative and integrated healthcare solutions to a broader audience.
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