LIC in Talks With RBI, SEBI and IRDAI to Expand Long-Term Investment Instruments for Growing Annuity Liabilities

Life Insurance Corporation of India (LIC) is in discussions with financial regulators over the availability of long-term investment instruments as its annuity business expands, as per PTI reports.  

Managing Director and CEO R Doraiswamy said the insurer has shared its requirements 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). 

Need for Longer Investment Options 

An annuity plan converts a retirement corpus into a fixed stream of income for life after a lump-sum investment. As more policyholders choose these products, LIC's long-term obligations are also increasing.  

The corporation said liabilities linked to its annuity portfolio can extend for 30, 40 or even 50 years, making long-duration investment options important for matching these commitments. 

Regulations Evolving with Industry Needs 

According to Doraiswamy, insurance companies mobilise long-term savings that can be used for infrastructure financing and other long-term funding requirements. 

He said the regulatory framework is gradually evolving to support these needs and added that IRDAI has been taking steps to address changes in the insurance market. 

Other Areas Under Consideration 

LIC said it is also examining the possibility of creating a fintech subsidiary, either through strategic investment or by building one internally, to support digital operations and innovation.  

Separately, the corporation said it remains prepared for any future government stake sale whenever such a decision is taken. 

Read More: Nestle India Pays ₹1,024.5 Crore in Royalty Fees to Swiss Parent Company for FY26! 

Life Insurance Corporation of India (LIC) Share Price Performance  

As of June 8, 2026, 2:34 pm, Life Insurance Corporation of India (LIC) share price was trading at ₹396.25, down 0.91% from the previous closing price. 

Conclusion 

The government raised around ₹21,000 crore through LIC's Initial Public Offering (IPO) in 2022 by selling a 3.5% stake. While no timeline has been indicated for further dilution, the insurer said it will work with the government whenever a decision is made.  

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