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Informist, Tuesday, Mar. 18, 2025

--LIC Mohanty: Have requested RBI for 50-year and 100-year bonds 

--CONTEXT: LIC MD Mohanty speaking at Global Conference of Actuaries 

--LIC Mohanty: To complete stake buy in health insurance co by end of Mar 

--LIC Mohanty:Enrolled 150,000 women under Bima Sakhi, got INR 4 bln premium 

--Banking secy: Insurers must bring innovative pdts to increase penetration 

--CONTEXT: Banking Secy Nagaraju speaking at Global Conference of Actuaries 

MUMBAI – Life Insurance Corp of India has requested the Reserve Bank of India to come out with 50-year and 100-year bonds, Siddhartha Mohanty, the insurer's chief executive officer and managing director, said while speaking to the media at the Global Conference of Actuaries. "We were in discussions with RBI. Normally, there are 20-, 30-, and even 40-year bonds that they have given. I am also expecting 50 years and even 100 years of bonds because some policies are whole life policies," he said.

Mohanty said LIC was a long-term investor and had contractual obligations to pay back its cutomers, which would be difficult unless it adjusts its assets and liabilities. Akin to western countries, India needs long-term bonds of up to 100 years but does not have the apetite yet, Mohanty said.

Speaking about LIC's plans to acquire stake in a health insurance company, Mohanty said, "Discussions are in the final stage and it is a natural choice for LIC to be in health insurance. Regulatory approval takes time, but I am very hopeful that a decision will be taken this financial year (2024-25)." While he did not name the company, he said LIC would not acquire majority stake. 

Mohanty also gave details of the newly launched 'Bima Sakhi Yojana', saying about 150,000 women had enrolled under the scheme and it has garnered a total of INR 4.00 billion in premiums. 

Speaking at the same event, Financial Services Secretary M. Nagaraju said insurers need to come up with better products to increase the penetration of insurance in the country. Nagaraju also said actuaries could play a major role in using new technology to assess data and bring down premiums, which will make insurrance accessible to all.  End

Reported by Kabir Sharma and Sachi Pandey

Edited by Avishek Dutta

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