HYDERABAD: Reliance Capital has decided carve out a new health insurance business from its subsidiary Reliance General Insurance Company (RGIL) to tap the health insurance market.
Health insurance market, pegged to reach Rs 50,000 crore ($8 billion) by 2020, is the primary reason for more companies to take up such an initiative. “A separate health insurance company will help in focusing exclusively on the sector and will also provide flexibility to company to unlock value by bringing in global players in this space as strategic and equity partners,” said a Reliance Capital statement.
RGIL’s health insurance portfolio consists of gross premium of about Rs 570 crore ($87 million) as on March 31, 2016. “This shows that there is enough potential to tap into the market and space for even new players,” said Jyoti Punja, deputy CEO of Cigna TTK Health Insurance.