Is vertical integration a good thing in Indian Insurance Industry

In management schools vertical integration is taught and there are positive and negative points in having the same.The greatest point is economies.At the same time
under corporate governance, privacy and ethics aspects we are supposed to behave differently.

TPA's are facing rough weather as covered in my various blogs in the past.As predicted by me the third-party administrator business in insurance is going through a churn, with conflict-of-interest issues hastening stake sales.

Bangalore-based TTK Healthcare Services, a third party administrator (TPA) is up for sale. Zurich based Swiss Reinsurance Company, the world’s second largest reinsurance company, owns 26 percent in TTK Healthcare, while the remaining 74 percent is owned by TTK Group and India Value Funds Advisors, a private equity fund.

Sources close to the development said this followed Swiss Re’s decision to go for a joint venture with Religare Enterprises to set up a health insurance company.

We will like to raise the question -Will the insurance companies stop dealing with insurance brokerge firm of Religare? Any health insurance quote given by the insurance company can be used/misused by Religare Swiss re Health co.We will welcome response from any insurance company in this regard

Should we expect the same thing to happen with some other TPA's?