# LIC Seeks Global Alignment for Irdai Expense Management Proposals India's largest insurer requests a gradual implementation path for new distribution cost caps. - **Source:** [mint - industry](https://www.livemint.com/rss/industry) - **Published:** 2026-11-05 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/15c12c2b-87ec-4119-b7ea-9435913e6661 ## Regulatory Feedback Submission Life Insurance Corporation of India has formally responded to the Insurance Regulatory and Development Authority of India regarding proposed expense caps. The insurer requested that the regulator align these limits with international industry standards. LIC emphasized the need for a more flexible implementation timeline to accommodate current operational conditions and market requirements. ## Operational Cost Concerns Managing director R. Doraiswamy stated that LIC requires additional expenditure for insurance awareness programs and technological upgrades. The insurer argued that the current proposals for capping distribution costs and agent commissions do not fully account for these necessary investments. They are seeking a glide path to ensure smooth compliance across all products. ## Product Line Impact While some of LIC's product lines currently operate within the proposed expense limits, others face significant pressure. The insurer has provided specific feedback on premium-paying terms and commission structures to mitigate these impacts. These suggestions were developed through extensive consultations with their vast network of agents across the entire country. ## Bancassurance Strategy Shift Regarding the proposed stake sale in IDBI Bank, LIC maintains that its bancassurance business remains secure. The company is actively diversifying its bank partnerships, recently adding RBL Bank and Yes Bank to its network. Management expects these new collaborations to generate significant business traction starting in the third quarter of this year. ## Strong Quarterly Performance LIC reported a 20.1% year-on-year rise in net profit for Q2 FY27, reaching 12,076 crore rupees. Net premium income grew by 16.2% to 1.47 trillion rupees during the same period. These results were supported by a significant 470 basis point improvement in value of new business margins, which reached 22.3%. ## Investment Portfolio Dynamics The insurer’s net investment income saw a modest 2.5% increase, totaling 1.2 trillion rupees, attributed to equity market volatility. LIC continues to follow a contrarian investment strategy. Notably, the company chose to increase its stake in the National Stock Exchange rather than selling shares during the recent initial public offering process. ## Unit-Linked Product Strategy Market volatility has impacted the performance of unit-linked insurance plans, leading to a decline in their share of the total portfolio to 34%. Consequently, LIC is focusing more on protection and savings products. The recent launch of a new pure term plan in September is expected to drive growth in the second half. ## Strategic Outlook Ahead The proposed strategic restructuring involving IDBI Bank remains a key focus for the government and LIC. As the insurer navigates regulatory changes and market shifts, management remains optimistic about future growth. They anticipate that ongoing improvements in distribution channel mix and product strategy will continue to bolster margins in coming quarters. ## Sources covering this story - https://www.livemint.com/industry/banking/lic-seeks-alignment-with-global-standards-eom-glide-path-in-feedback-to-irdai-s-distribution-proposals-11793890392546.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._