India Business Journal - LIC mulls floating a fintech arm, eyes strategic investment in niche entities

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LIC mulls floating a fintech arm, eyes strategic investment in niche entities

IBJ Bureau
Jun 01, 2026

State-owned insurer Life Insurance Corporation of India (LIC) is exploring the possibility of setting up a fintech arm either through strategic investments or organically.

The fintech venture is a part of efforts to strengthen its digital capabilities and drive innovation, according to LIC CEO and MD R Doraiswamy.

Mr Doraiswamy adds that LIC is actively engaging with fintech and insurtech companies to modernise operations and develop innovative solutions.

As a large financial institution with investments across sectors, LIC is also evaluating strategic investments in specialised players to enhance returns on policyholders’ funds.

He notes that LIC has long been an early adopter of digital technologies and has built strong in-house software development capabilities.

Besides, the insurer continues to work closely with IT service providers for new infrastructure and platforms, combining internal expertise with external support.

According to Mr Doraiswamy, LIC is assessing multiple options, including partnerships with fintech firms, as it seeks to modernise applications and remain agile in an increasingly competitive market. The insurer is currently evaluating the value proposition of various alternatives.

On the government’s plans to dilute its stake further, he has added that LIC has been prepared since its 2022 IPO and will work closely with the Centre whenever a decision on the timing and size of the stake sale is taken.

The government had raised about Rs 21,000 crore by selling a 3.5 per cent stake in LIC through its IPO in 2022.