LIC chairman VK Sharma would like to see around 20% of Life Insurance Corporation’s (LIC) investments go towards building urban infrastructure and municipal bodies.
LIC used to invest in municipalities earlier for creating infrastructure, but it was one area where it wasn’t doing enough, he said. LIC had cumulatively invested around Rs 30,000-40,000 crore in this sector, but currently it was Rs 6,000 crore, he said. Other insurance firms too are not investing here, he pointed out.
LIC is investing in municipal bonds and in many cases they are the only buyers of these bonds, Sharma said, adding that while they want to invest, there was a need to create more sustainable models to invest in which would make the 20% investment target achievable. Sharma was speaking at the annual CD Deshmukh memorial seminar at the National Insurance Academy in Pune.
Meanwhile, MD Usha Sangwan said LIC has increased its market share this year. “LIC holds 70% market share. This year, the market share has gone up to 71% in an expanding pie,” she said.