Vidal Health Insurance TPA has acquired Vipul Medcorp Insurance TPA for an undisclosed amount. This is the first such deal in the third-party administrator (TPA) space.
Post-acquisition, Vidal Health Insurance TPA will be the second-largest player in the segment after Medi Assist.
TPA is an entity that processes insurance claims under medical insurance. Every insurance company appoints TPAs for health policy claims settlements. When a claim is filed under a health policy, the TPA manages the claim documentation and processing and passes this information to the insurer to settle the claim.
“Regulations were changed last year when IRDAI has allowed retail customers to choose their TPA. So we felt that there was an opportunity to expand further into the retail business. Vipul Medcorp has been a retail-focused player so this acquisition will help us on that front,” Girish Rao, Chairman & Managing Director, Vidal Health, said.
Rao said the acquisition will be completed over the next four to five months following which all Vipul customers will be serviced by Vidal Health.
Rajan Subramaniam, CEO of Vipul Medcorp, in a statement, said this merger will help deliver superior services to health insurance customers.
“Technology is playing a role in the industry. Players will need to have a good scale to make these necessary investments. Else, they would fall behind. Eventually, there may only be four to five players in this space,” Rao added.
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