LIC expects limited impact from IRDAI's proposed commission caps and distribution reforms, as the insurer already operates within several of the proposed limits, CEO and Managing Director R Doraiswamy told ANI in an exclusive interview. According to reports from The Hindu BusinessLine, Doraiswamy indicated that insurers with higher distribution expenses could face greater pressure once the regulations are finalised, while LIC may need to modify or refile certain products to comply with the revised framework. He confirmed that LIC has submitted its feedback to the regulator and expressed confidence that the concerns of insurers and distribution partners would be considered before the regulations are finalised. Speaking to analysts, Doraiswamy emphasised that LIC's cost structure gives it an advantage over competitors, even if they reduce distribution costs, stating that "Anybody else reducing the cost of distribution alone will still have to do a lot of work to bring their overall expense ratio to be under that. So, we stand to be on a distinctly advantageous position."
LIC reported a 20.12% year-on-year rise in standalone net profit to ₹12,076.02 crore in Q2 FY2027, compared with ₹10,053.39 crore in the corresponding quarter last year, as reported by The Hindu BusinessLine. The insurer's net premium income rose 16.24% year-on-year to ₹1,47,018.18 crore in Q2 FY27, compared with ₹1,26,479.26 crore a year earlier. Value of new business (VNB) margin improved significantly to 22.3%, representing a substantial increase from 17.6% in the same period last year, with the value of new business rising 34% year-on-year to ₹68.46 billion as of September 30, 2026. Net investment income stood at ₹1,14,983.77 crore, compared with ₹1,12,147.16 crore in the year-ago quarter.
Speaking about LIC's financial performance, Doraiswamy attributed the expansion in its Value of New Business (VNB) margin to 22.3% to an improved product mix, higher ticket sizes in non-participating products and increased focus on protection and savings, according to The Hindu BusinessLine. He explained that the insurer has been making progress towards having an ideal product mix, which is around a one-third, two-thirds proportion in terms of non-par and par products. The company has also been increasing the ticket size in the non-par segment, with focus on non-par savings and protection in the last few quarters giving good results. As reported by Informist, LIC's management expects the VNB margin to continue rising going forward as the insurer focuses on non-par savings and term assurance business.
On the proposed IDBI Bank stake sale, Hemant Buch, executive director for marketing, bancassurance and alternate channels, said LIC does not expect a significant decline in business sourced through the lender. IDBI Bank's contribution has moderated from historical highs to around 20% of LIC's total bank-driven business and about 30% of its bancassurance volume, as reported by The Times of India. Buch emphasised that "While IDBI will continue to deliver value for us and remain a valued and esteemed partner, we do not foresee much depletion in terms of their contribution and overall impact on the volume of bancassurance-driven performance." LIC has taken steps to ring-fence the performance of bancassurance channels despite the impending sale, citing its low expense ratio, diversified distribution network and declining dependence on IDBI Bank as key advantages.
On LIC's growth priorities for FY2027, Doraiswamy said the insurer would focus on expanding individual term insurance, savings, annuity and unit-linked insurance products (ULIPs), alongside strengthening its health-related offerings, as reported by The Hindu BusinessLine. He highlighted the launch of LIC's Health Shield, New Cancer Cover and Jeevan Raksha, a pure term insurance product aimed at addressing the protection needs of the missing middle. On increasing competition from private life insurers, Doraiswamy said LIC would strengthen its distribution network, improve agent productivity and expand its product portfolio to maintain its market leadership. He said LIC aims to establish a Bima Sakhi presence in every panchayat across the country, with the initiative already covering approximately 66% of panchayats.
