Insurance giant Life Insurance Corporation (LIC) is considering setting up a fintech unit. LIC has launched a comprehensive digital transformation project called DIVE (Digital Innovation and Value Enhancement) and has roped in a consultant to lead the initiative, LIC Chairman Siddhartha Mohanty said in an interview with PTI.
“Our goal is to get the best digital initiatives for all our stakeholders, customers, intermediaries, marketing people and everyone through the DIVE project,” he said.
He mentioned that the initial stage will witness a transformation in the customer acquisition process. The acquisition process involves three methods: through agents, bancassurance, and direct sales.
LIC primarily acquires the majority of its new clientele through its agents. Therefore, various domains are ready to change, with services such as claims, loans and other offers easily accessible with just a click.
“Customers do not need to come to the office. Sitting at home with his mobile phone, he can access our required services… we are also focusing on fintech and will use its potential to expand business,” he said.
LIC is also exploring the possibility of establishing its own fintech division as a possible business model, according to statements made. When pressed for more information about the fintech initiative, the response was that it was too early to discuss details at this point.
LIC has incorporated three fintech companies as corporate agents in the current year to facilitate the distribution of its products. The insurer has a strategic plan to introduce 3-4 new products during the ongoing financial year, aiming to propel double-digit growth in new business premiums.
Anticipating significant market interest, LIC is all set to unveil a new product in the first week of December. According to Mohanty, this product will ensure returns, with policyholders getting 10% of the sum assured for life after maturity.
Mohanty expressed confidence that the upcoming product will disrupt the market by addressing consumers’ curiosity about their payments and expected returns over extended periods. He highlighted additional features such as loan facility and premature withdrawal, emphasizing the product’s appeal to both policymakers and shareholders due to its guaranteed return aspect.
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Updated: 26 Nov 2023, 15:15 IST