Reliance Health Insurance has received the final approval of the IRDAI for a licence to operate as a standalone health insurance business.
A wholly owned subsidiary of Reliance Capital, the new company will commence pan-Indian operations this quarter.
The company has on board nearly 3,500 hospitals as partners, and plans to extend the partnership with 5,000 hospitals in 100 cities by March.
In a statement, Mr Anmol Ambani, Executive Director, Reliance Capital said, ''The scope of health insurance in India is massive and, given the current low penetration, is expected to grow multi-fold over the next few years. Setting up a standalone health insurance company with an extremely experienced and capable leadership will allow us to put the right kind of focus this segment requires. We are making significant investments in our technology and digital platforms which will provide a magical experience for our customers.''
Health insurance in India has been amongst the fastest growing insurance sectors growing at 20% annually and is expected to double to over INR1trn ($13.5bn) by 2021.
Mr Ambani said that three factors—changing demographics (a young India with higher income, higher assets, and more financially aware), the rising cost of healthcare, and an increase in lifestyle-related ailments—indicate significant growth potential.
With the establishment of Reliance Health Insurance, the total number of standalone health insurers registered with the IRDAI is now seven.