Comments
LIC Chairman VK Sharma highlighted the need for long-term investment opportunities for insurers.
“Investment by insurance companies is a key issue in the future as insurance is a long-term investment,” he said at an Assocham insurance conference, pointing out that since insurance is about managing long-term liabilities with long-term assets, there is a need to have longer-term bonds having a duration of over 10 to 15 years.
Sharma said that in developed economies, over 30 per cent of the investments by insurers are in long-term bonds, while developing economies like India have not been able to develop such bonds.
“This leads to volatility…whether the insurance company will be able to deliver the promised return,” he said.
.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.