Life Insurance Corporation of India (LIC) aims to build a broader financial-services presence and could revisit banking opportunities if regulations are amended, Moneycontrol reported, citing the insurer’s CEO.
Rules currently prevent insurers from promoting banks.
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LIC’s investment in IDBI Bank was permitted as an exception because the lender required sustainable capital, according to the CEO.
LIC managing director and CEO R Doraiswamy said: “LIC aspires to become a financial conglomerate, with interests across insurance, housing finance and other businesses. However, current regulations do not allow insurers to promote banks. LIC’s entry into IDBI Bank was an exception, driven by the bank’s need for sustainable capital.
“With that objective fulfilled, LIC is reducing its stake alongside the government’s divestment. If regulations change, we may revisit the opportunity. Meanwhile, LIC Housing Finance may technically be eligible to acquire a bank under the Banking Regulation Act, and we will examine its feasibility.”
The insurer is considering long-term investment opportunities in financial services, technology, fintech, insurtech, and infrastructure. Its investment approach prioritises security and sustained returns while seeking to improve yield.
He added: “Our investments are long-term and focused on enhancing yield while maintaining adequate security. Stability and long-term returns are the two main factors.”
LIC has expanded the application of AI across operations, including onboarding, customer engagement, fraud detection, analytics, and support.
A dedicated Centre of Excellence is overseeing adoption.
Existing AI applications include liveness checks, renewal reminders, and maturity-claim documentation. LIC could extend its use of the technology to underwriting and claims.
“We do not view AI as a tool for workforce reduction. In fact, I think it aims to equip existing employees with AI-enabled tools to improve customer service,” the CEO said.
The Indian government designated Fairfax as the “strategic buyer” for a 60.72% equity stake in IDBI Bank for approximately Rs528.78bn ($5.6bn).
Under the approved structure, the Government of India and LIC will divest 30.48% and 30.24% of their stakes, respectively.
