The Insurance Regulatory and Development Authority of India (Irdai) has questioned the TTK group on its early exit from the joint venture agreement with Cigna in Cigna TTK health insurance as it plans to sell its 51 percent stake in the company to Manipal group.
The queries raised by Irdai are part of the regular due diligence process followed and Cigna TTK is complying with the same. Given that we are an insurance player, the regulator reaches out to us at regular intervals on different queries that they may have related to the business, said Sandeep Patel, CEO& MD, Cigna TTK Health Insurance. Cigna TTK is a stand-alone health insurance company with over 3,00,000 customers in India with a network of 15 branches and is present in 6000 locations through its point of sales network.
Cigna TTK had filed an application with the insurance regulator on September 1, 2017, for a change in the partnership from the TTK Group to the Manipal Group. Moreover, Cigna is in the process of raising its stake in the private health insurance company to 49 per cent from 26 per cent.
This proposed partner change, together with the recent increased investment from (26 % – 49 %) is a significant step for us and marks Cigna’s long-term commitment to the Indian health insurance sector. It will also help us in providing our customers with a more comprehensive suite of health care solutions and disrupt the market by integrating with the health care delivery ecosystem, added Patel.
The company has registered a 37.41 per cent growth in the gross direct premium underwritten from Rs 79.74 crore to Rs 109.20 crore up to the month of August, 2017. Currently, they are holding a market share of 0.20 per cent in the non-life insurance segment.
Source: Business-Standard