The Life Insurance Corporation of India (LIC) is planning to expand into the health insurance and general insurance businesses in the overseas market. While nothing has been finalised, LIC is keeping in mind the anticipated developments and future potential of various markets, said P V Subramanian, executive director - marketing and international operations, who retired on Tuesday after his 36-years stint at LIC.
"LIC would like three different partners for life, general and health insurance businesses," said Subramanian. "When we look at joint ventures overseas, we keep in mind opportunities available," he added. As per the Indian law, LIC is not permitted to venture into non-life insurance. However, the top brass expects changes to take place in the future.
The proposed LIC joint ventures in the UK and US markets, however, will be confined to life insurance, said Subramanian.
LIC has shortlisted three UK-based life insurance companies for the proposed joint venture to expand its UK operations and get a foothold into the European market.
In an exclusive interview with Business Standard, Subramanian said: "We need to leverage on the presence of NRIs (non-resident Indians) who still have an attachment with LIC".
Even as LIC has not decided on the equity structure of the proposed joint venture in the UK, Subramanian said the partnership would be on equal terms to ensure that "we have a say in the decision-making process". LIC is in the process of establishing a joint venture with one of the three companies and is expected to finalise the same in the coming month.
"While we may not be a big player in the UK market at present, no one should take us for a ride," said Subramanian.
The state-owned life insurer had conducted a survey some time back across two key centres of Kerala covering 150 km.
Data revealed that over 1.2 lakh elderly couples residing in that belt and having children overseas, had been showered healthcare and life insurance covers of state-owned insurers. "Despite the children being well settled overseas, their ties with India are very strong. This is what we would like to further capture and would bring into the joint venture," said Subramanian. He further added that contrary to general perception that most of those taking insurance cover are residing in the Gulf countries, the survey showed that they were mostly from the UK, US, the Far East, Asia and South Africa.
LIC is thus expanding its foreign operations and proposed to tap these markets in a big way. Aside from enhancing foreign income operations, Subramanian said joint ventures overseas would help LIC better understand its competitors in the Indian market. "It will help us upgrade our skills, and become more outward looking," he added.
