US health insurance major Cigna Corporation plans to form JV with Indian co

NEW DELHI: American health insurance major Cigna Corporation plans to form a joint venture with an Indian company in the next three months to foray into the country's fast-growing health insurance sector, David M Cordani, president and CEO of the firm, told ET.

The firm has shortlisted three local players. "We are looking for a partner who has local knowledge of the market, vast distribution network and the right values," he said, but declined to name the potential partners.

If talks fructify, the JV firm will become the fifth standalone private health insurance entity in the country. A senior industry executive had earlier told ET that the Philadelphia-based health insurer is in discussions with a host of state-owned Indian banks to leverage their vast distribution channel.

The banks include Bank of India, Bank of Baroda, Punjab National Bank, Oriental Bank of Commerce and Canara Bank. But it is also in talks with firms from the non-banking sector, another industry executive said.

In the last few years, foreign firms such as German's DKV and British firm Bupa have launched their services in the country that has one-sixth of the world's population with a dismal health insurance penetration.

"We are here in India to review all the three entities. The penetration in India is extremely low and thus we see a lot of potential in the country," said Cordani.