LIC Seeks More Long-Term Instruments as Annuity Inflows Surge

The Life Insurance Corporation of India, the country's largest insurer, is in talks with key financial regulators, including the Reserve Bank of India and the Securities and Exchange Board of India, to expand the availability of long-term investment instruments, its chief executive said. Managing Director R Doraiswamy said the push reflects steadily rising inflows into LIC's annuity products, which convert an accumulated retirement corpus into a guaranteed, lifelong stream of income for policyholders. As those flows grow, insurers need access to long-dated assets whose maturities better match the decades-long obligations that annuities create, reducing the risk that arises when long-term promises are backed by shorter-term investments. A deeper pool of long-duration bonds and similar instruments would help LIC and its peers manage that mismatch while supporting the development of India's long-term debt market. The move comes as India's insurance sector expands and as regulators pursue a broader agenda of widening coverage and product access. For savers, more robust annuity offerings could strengthen retirement-income options in a market where formal pension coverage remains limited and longevity risk is a growing concern.