LIC remains critical to India’s financial stability; check major achievements, policies for consumers

The Secretary of the Department of Financial Services (DFS) on Sunday outlined the central role of the Life Insurance Corporation of India (LIC) in India’s financial system while addressing LIC’s Strategy Meet in Mumbai, highlighting why the institution remains vital to the country’s economic stability and financial inclusion.

The Secretary said LIC’s designation as a Domestic Systemically Important Insurer (D-SII) underscores its importance, as the corporation’s stability is closely linked to the stability of India’s financial system. He noted that LIC’s scale, trust, and long-term investment strength make it a cornerstone of the country’s insurance and financial landscape.

Highlighting LIC’s financial strength, the Secretary said the insurer manages a consolidated assets under management of ₹57.23 lakh crore, with a yield of 8.9 per cent on policyholders’ funds and a strong solvency ratio of 2.13. This robust financial position enables LIC to safeguard policyholders’ interests while supporting long-term national development.

The Secretary said LIC’s importance also lies in its ability to adapt and modernise while retaining public trust. The corporation has successfully transitioned from a traditional insurer to a technology-driven, digital-first financial institution, ensuring wider reach, efficiency, and accessibility.

On inclusion, the Secretary highlighted LIC’s unmatched distribution network, noting that its over 14.8 lakh-strong agency force allows insurance penetration even in remote and underserved areas. Initiatives such as Jeevan Samarth have strengthened youth participation, ensuring continuity and sustainability of the agency model.

The Bima Sakhis initiative was described as a transformative step in empowering women and expanding insurance coverage at the grassroots level. With over 2.9 lakh women agents securing more than 14 lakh policies and covering over 50 per cent of panchayats, LIC has played a key role in advancing financial inclusion.

The Secretary also highlighted LIC’s evolving product strategy, with a shift towards high-growth, non-participating products and innovative offerings such as ULIPs, Yuva Term, Digi Term, and Index Plus, making insurance more relevant for younger and working populations.

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Emphasising LIC’s future readiness, the Secretary pointed to Project DIVE as a critical digital initiative that will strengthen customer engagement, data-driven decision-making, and operational efficiency.

Concluding the address, the Secretary said LIC’s unique combination of scale, trust, financial strength, and nationwide reach makes it indispensable to India’s goal of achieving “Insurance for All” and sustaining long-term economic stability.