The Insurance Regulatory and Development Authority of India (Irdai) is planning to allow life insurance companies to offer health insurance policies and it is expected to issue draft guidelines soon, according to a media report. The move is likely to reduce premiums and increase access to affordable health cover.

“Life insurance companies inherently get more customers than health insurers in the retail space, which will help them get more people covered under medical insurance at more affordable premiums,” according to the livemint report quoting a source. The report added that the Irdai’s internal committee has been discussing the proposal over the past few weeks.

Life insurance companies posted an 84 per cent growth in their cumulative new business premium at Rs 17,940 crore in April 2022, primarily helped by LIC, Irdai data showed. All 24 life insurers had collected Rs 9,739 crore as new business premium during the same month a year ago.