Why LIC's present governance culture makes it a poor investment bet

IPO plans for the state-owned insurer will reveal weaknesses in its business model

India does not have a sovereign wealth fund but if it did, it could look like the Life Insurance Corporation (LIC). This did not happen by design, but the combination of a government-run life insurance business operating in a monopoly market until 2000 has made LIC a de facto one. The institution still does not fully report to the insurance sector regulator, being governed by a separate Act. It is also one of India’s largest employment generators, its total agency force being just shy of 1.2 million. It is also suspected of having destroyed wealth because successive governments have used