Business
07 Jun, 2026
LIC in talks with regulators to facilitate long-term instruments to match growing liabilities: CEO
Business To Business, New Delhi, 7th June, 2026: Life Insurance Corporation of India is in discussions with major financial regulators to expand the availability of long-term investment instruments as demand for its annuity products continues to grow.
LIC's CEO and Managing Director, R Doraiswamy, said the insurer is engaging with:
- Reserve Bank of India (RBI)
- Securities and Exchange Board of India
- The insurance regulator
Why LIC Needs More Long-Term Investments
An annuity product converts a retirement corpus into a guaranteed stream of income that can last for the policyholder's lifetime. Because these obligations can extend for decades, insurers need assets with similarly long maturities.
As more customers choose annuity products:
- LIC's long-term payout commitments increase.
- The company needs more long-duration investment options to match these liabilities.
- Proper asset-liability matching helps ensure that future pension payments remain secure and predictable.
What LIC Is Seeking
LIC has communicated to regulators the need for:
- More long-term investment instruments.
- Investment avenues that align with the lengthy duration of annuity liabilities.
- Financial products that can provide stable returns over several decades.
Why This Matters
The growing popularity of annuities reflects increasing demand for retirement income security in India. However, insurers can sustainably offer such products only if suitable long-term assets are available for investment.
Key takeaway: LIC is urging regulators, including RBI and SEBI, to facilitate more long-term investment opportunities so that it can effectively support the rising demand for annuity products while maintaining strong asset-liability matching for lifelong pension commitments.