LIC says to ensure new IRDAI distribution norms don't impact growth
This story was originally published at 20:29 IST on 6 August 2026
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Informist, Thursday, Aug. 6, 2026
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--LIC: Will ensure new IRDAI distribution norms do not affect growth
--CONTEXT: Comments by LIC management at post-earnings press conference
--LIC: Will continue to focus on non-par protection plans going forward
--LIC: Will continue to improve on non-par savings plans
--LIC: Too early to predict effect of West Asia crisis on growth
--LIC: Growth in premium not as high as expected amid West Asia war
--LIC: We hope offer for sale will push up share price in near future
--LIC: See "My LIC" app crossing 10 mln customers very soon
--LIC: Bancassurance remains one of our main focus
--LIC: Quite comfortable with new risk-based capital norms
MUMBAI/NEW DELHI – Life Insurance Corp. of India Thusrday said it will ensure that the new distribution norms proposed by the Insurance Regulatory and Development Authority of India do not affect the company's growth. The state-owned insurer said it may make some changes to comply with the new norms, but does not expect it to be "very difficult" to adapt while sustaining growth, the company's management said during a post-earnings press conference.
"It is too early to comment. As and when the distribution sector reforms paper is put forth for discussion or implemented, we expect to be compliant and we expect to be adapting to it and ensuring that our growth does not get affected in a big way," the management said.
The insurance regulator has proposed rules mandating the tagging of authorised salespersons on every policy, replacing periodic licence renewals with perpetual annual registrations, and shifting distributor payouts toward staggered, persistency-linked commissions to curb mis-selling. The final guidelines are yet to be released.
"We expect that the overall interest of the industry and particularly the individual agents who are dependent on insurance sales is being taken care of while the regulator is going to come up with distribution sector reforms," the management said. "As an organisation, we expect that there'll be very low impact on LIC because, one, we have a sizeable contribution from the individual agents. Two, the expense towards commission is not high in comparison with the rest of the industry."
The life insurer's net profit rose nearly 23% on year to INR 134.92 billion in the June quarter, but fell nearly 42% sequentially. Net premium income rose nearly 7% on year to INR 1.27 trillion, though it declined nearly 23% from the previous quarter. Net income from investments increased by over 6% on year and remained broadly flat quarter on quarter at INR 1.09 trillion.
The management expects the contribution of non-participating protection products to continue increasing and said the company will further strengthen its non-participating savings products. "We will continue to improve on non-par savings as well as the other areas... Our focus will be on increasing (non-participating) protection (products) certainly in the next few quarters. We want some big improvement in the contribution that we receive from protection," the management said.
On the impact of the war in West Asia, the management said it was too early to assess the effect of the conflict on the company's growth. "Every day we are getting new information. One day it looks like we are past the crisis, the next day something else comes up. So, we will have to wait and watch," the management said.
However, premium growth in the June quarter was not as strong as expected because of the war in West Asia, the management said. "Though the numbers have improved, the numbers are good this quarter, but the growth in premium, it is not that high."
Earlier this week, the government said it would sell a 6.5% stake in the insurance behemoth through an offer for sale. The management expects the stake sale to support the company's share price. "We hope that the market recognises this and the share price goes up in the immediate future." Commenting on the "My LIC" application, the management said it expects the platform to cross 10 million users very soon. The life insurer will continue to focus on bancassurance and remains comfortable with new risk-based capital norms.
Thursday, Life Insurance Corp. of India shares ended at INR 387.55 on the National Stock Exchange, down 1.4% from the previous close. End
Reported by J. Navya Sruthi and Shweta
Edited by Saji George Titus
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