Cigna, a global health service company and TTK Group, an Indian business conglomerate, announced their health insurance joint venture.
With only around 2.2% of the population covered under private health insurance, Indian markets hold tremendous potential for players that can cater to the growing needs of this large population.
The joint venture between the two companies is named Cigna TTK and it will be headquartered in Mumbai. Sandeep Patel, Managing Director of Cigna Health Solutions India Pvt. Ltd., a wholly owned Cigna subsidiary, will be the CEO of the joint venture.
Cigna TTK will focus on insurance and related services in the health sector and has applied for health insurance licence to the Insurance Regulatory and Development Authority (IRDA). Post getting an approval from the regulator, the company expects to start its operations in 2013 and will sell a range of health, insurance and wellness products.
TTK Group has 400 distribution stores of TTK Prestige, 1.6 lakh pharmacies of TTK Healthcare and 20,000 direct dealers. It has been known for its strong distribution and marketing network.
“We have a vast distribution strength consisting of franchisees, pharmacies, our own stores and will try and use all of them to sell health policies of Cigna TTK health insurance. Besides our own distribution, we will use agents, brokers and all other traditional channels to sell policies,” said TT Jagannathan, chairman of TTK Group.
David Cordani, CEO, Cigna said, “We recognize the value of TTK’s deep insights into the Indian consumer’s interests and needs as well as their ability to reach these consumers across the country.”
