US health insurance giant Cigna International is set to foray into India in the next three months, even as key issues such as the foreign direct investment limit, uncertainty over initial public offers and capital base continue to plague the insurance industry.
The standalone health insurance major is already serving the 13,000 global expatriates in India at present, and is in talks with several public sector banks for a possible joint venture.
“The growth opportunity in India is significant and attractive enough and there is a huge underserved market which we would like to tap,” David Cordani, president & CEO, CIGNA Corporation told HT.
Cordani said that though the FDI limit is still capped at 26% in India, it is not an impediment to entering the market. “The 26% cap on FDI in the insurance sector is not an impediment though we hope that it would be increased in the near future,” he said. In China, the FDI cap for insurance sector is 50%. Accessibility is a challenge in both markets, he said.
“Our product portfolio would help us in tapping the underserved markets (small towns) which comprise a huge chunk,” Cordani said.