LIC Seeks Long-Term Investment Avenues

Life Insurance Corporation of India (LIC) is actively exploring long term investment avenues to support its growing annuity business. LIC CEO and Managing Director R. Doraiswamy said the insurer is holding discussions with the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Insurance Regulatory and Development Authority of India (IRDAI) to identify suitable long term investment instruments.

Doraiswamy explained that LIC is required to make annuity payments for 30 to 40 years under certain annuity policies. As a result, the corporation needs access to more long term investment options that can match these long term liabilities. He noted that a large number of policyholders are currently opting for annuity products, leading to increased inflows into such schemes.

He also said that IRDAI is working to identify new investment instruments in line with evolving market conditions. In addition, LIC is actively evaluating the possibility of entering the financial technology (fintech) sector. The company is yet to decide whether to establish its own fintech firm or acquire a stake in an existing one. On further stake sales in LIC, Doraiswamy said the final decision rests with the government and added that LIC has been prepared for such a move since its IPO.