A joint venture between MMI Holdings and an Indian financial services group has received final approval from the Insurance Regulatory and Development Authority of India to provide health insurance solutions on the subcontinent.
The partnership between MMI Holdings
and Aditya Birla Group
(ABFSG) will be known as Aditya Birla Health Insurance Co. Limited (ABHICL) and will leverage ABFSG’s strong heritage, brand stature and market presence in India, as well as MMI's established capabilities in health and wellness. The plan is to offer health insurance products that would not only enhance customer choice but also add a new dimension to the current market offering in India.
First to register under new law
Health insurance penetration in India is less than 5%, and according to the Insurance Regulatory and Development Authority of India, this is the first health insurance company to be issued a certificate of registration, since the amendment of the Insurance Act of 1938 which recognises health insurance as a separate class of business.
Nicolaas Kruger, group CEO of MMI Holdings says, “This is an important milestone for MMI and we look forward to extending our health insurance and incentivised wellness solutions to the Indian market. Our entrance into the Indian market also underscores MMI’s geographic diversification strategy and presents significant potential for growth in the long-term.”
Ajay Srinivasan, chief executive: financial services, Aditya Birla Group says, “We are excited by the health insurance opportunity in India and believe that health and wellness play a key role to help people live successful lives and achieve their dreams. Given the low penetration of this category, we are confident that our differentiated products and solutions will bring relevance to our target consumers”.
Aditya Birla Health Insurance is gearing up to begin operations in the last quarter of 2016.