India’s insurance regulator has granted a certificate of registration to Prudential HCL Health Insurance Ltd, allowing it to begin health insurance operations in India.
The approval, granted at the Insurance Regulatory and Development Authority of India’s (Irdai’s) 136th Authority meeting on 29 June, makes Prudential HCL Health Insurance the country’s eighth standalone health insurer, according to an Irdai press release issued on Tuesday. It is also the third insurance registration approved by the regulator this year.
Prudential HCL Health Insurance is a joint venture between the UK’s Prudential Group and HCL Group. Prudential holds a 70% stake in the venture through its subsidiary, while HCL Group’s Vama Sundari Investments owns the remaining 30%.
The approval marks another step in Prudential’s expansion in India. The company had said in May that the health insurance venture was awaiting regulatory clearance and expected to begin operations in 2026.
Even as it was awaiting regulatory approval to start operations, Prudential announced on 13 April it was strengthening the management of Prudential Health India by appointing Amit Dave as chief executive officer and managing director, and Abhishek Saraf as chief operating officer. Dave succeeded Amar Joshi.
The health insurance business is part of a broader overhaul of Prudential’s India strategy. In May, the insurer announced plans to acquire a 75% stake in Bharti AXA Life Insurance for ₹3,500 crore, with an additional payment of up to ₹700 crore linked to certain conditions. As part of the transaction, Prudential also said it would reduce its stake in ICICI Prudential Life Insurance to 10% from about 21.9% to comply with regulatory norms on ownership across life insurers.
100% FDI sparks interest
The Irdai’s approval comes months after the government raised the foreign direct investment (FDI) limit in the insurance sector from 74% to 100%, allowing foreign investors management and board control, subject to specified conditions.
The policy change has renewed interest among global insurers looking to expand in India, leading to an increase in deal activity of late. Allianz exited its insurance joint ventures with the Bajaj Group earlier this year before announcing a new 50:50 insurance partnership with Jio Financial Services. Other global insurers and investment firms, including Chubb, Old Mutual, Tiger Global and Bain Capital, have also explored opportunities in the Indian insurance market.
Prudential, listed in Hong Kong and London, operates insurance and asset management businesses across Asia and Africa and has previously identified India as one of its key growth markets.