Cigna Looks to Enter Health Insurance Market in India

Cigna, a health services company, and TTK Group, an Indian conglomerate, have signed a joint-venture agreement to sell a range of health, wellness and insurance products across India. Cigna says the agreement makes the insurer the first to apply for entry into India as part of a stand-alone, joint-venture health insurance company.

Cigna and TTK are seeking approval from India's Insurance Regulatory and Development Authority and plan to submit a comprehensive filing early next year, says Cigna. Full license to operate would not be expected until 2013, and financial terms of the agreement were not disclosed.

Cigna says health care is the fastest-growing sector of the Indian economy. With 1.2 billion people (one-sixth of the world's total population), India is experiencing an increase in chronic conditions and lifestyle diseases, such as diabetes and hypertension, mirroring worldwide trends. Health care spending is expected to grow significantly during the next decade, giving rise to interest in leveraging successful health management programs and systems.

According to Cigna, its own direct-to-consumer marketing capabilities, which include a combination of telemarketing, online and direct response television, combined with TTK's pan-India retail reach, means that products can be marketed across diverse geographies and customer segments, including those in rural areas.