Life Insurance Corporation of India (LIC) is sharpening its focus on increasing ticket sizes while simultaneously expanding policy sales as the insurance giant works towards supporting the national vision of “Insurance for All by 2047,” according to Managing Director and Chief Executive Officer R Doraiswamy.
Speaking during the company’s earnings call, Doraiswamy said LIC expects higher ticket-size policies to improve persistency ratios over time, while maintaining strong growth momentum across business segments.
“The company’s focus has been to increase the ticket size. At the same time, we are also looking at increasing the overall number of sales because we are also focusing on contributing towards the vision of Insurance for All by 2047,” he said.
Persistency expected to improve
LIC increased the minimum sum assured in October 2024 in line with the new Master Circular guidelines. According to the management, the benefits of the revised structure will become visible gradually across policy cohorts.
Doraiswamy noted that product mix variations and policies sold during the COVID period had impacted the 61st month persistency levels. However, the insurer remains confident of improving persistency across cohorts in the coming years.
The company also said a balanced product strategy combining higher-ticket non-participating savings products and protection plans would help sustain margins while expanding coverage across customer segments.
Claims payout rises in FY26
LIC processed 2,49,56,342 claims during the financial year ended March 31, 2026, including 2,41,25,943 maturity and survival benefit claims.
On a value basis, total maturity claims stood at ₹2,79,951 crore during FY26 compared to ₹2,37,313 crore in FY25, marking a year-on-year increase of 17.97%.
Death claims during FY26 stood at ₹24,885 crore against ₹24,420 crore in the previous financial year, reflecting a growth of 1.91%.
Confident after four years of listing
Reflecting on LIC’s journey since its listing in May 2022, Doraiswamy said the insurer had exceeded several of the goals outlined to shareholders during the IPO period.
“When we now look back at our four-year journey post-listing, we feel happy that we have delivered more than what was told to the shareholders at the time of listing,” he said.
He added that LIC has already achieved significant directional changes in product mix, channel mix and margins, placing the company on a path of “superior growth with sharper focus on enhanced performance parameters.”
Cautious approach on payout ratio
LIC said future payout ratios would depend on upcoming regulatory developments, particularly around the proposed implementation of risk-based capital norms.
The management said the insurer intends to maintain comfortable solvency levels by building adequate reserves before committing to higher shareholder payouts.
The company highlighted that it had already rewarded shareholders through a bonus issue followed by an increased dividend, while aiming to sustain shareholder returns going forward.
ULIPs, annuity and protection business in focus
LIC said Unit Linked Insurance Plans (ULIPs) continue to witness strong traction during favourable market conditions. At the same time, the insurer plans to increase its contribution from guaranteed business segments including non-par savings, protection and annuity products.
The company also reiterated its commitment to serving the bottom-of-the-pyramid population through micro-insurance and low-ticket policies to expand insurance penetration across all sections of society.