Insurance behemoth Life Insurance Corporation (LIC) is considering the establishment of a fintech unit. LIC has launched a comprehensive digital transformation project named DIVE (Digital Innovation and Value Enhancement) and has enlisted a consultant to lead the initiative, LIC Chairman Siddhartha Mohanty said in an interview with PTI.
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“Our objective is to get best in class digital initiatives for all our stakeholders, customers, intermediaries, marketing people and everybody through the project DIVE,” 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. Consequently, various domains are poised for change, with services such as claims settlement, loans, and other offerings set to be easily accessible with just a click.
“Customers need not come to the office. Sitting at home through his mobile he can access our required services…we are focussing on fintech as well and will harness its potential in expanding business,” he said.
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LIC is also exploring the possibility of establishing its own fintech division as a potential business model, according to statements made. When pressed for additional information on the fintech initiative, the response was that it is 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 set to unveil a new product in the first week of December. According to Mohanty, this product will assure returns, with policyholders receiving 10% of the sum assured lifelong after maturity.
Mohanty expressed confidence that the forthcoming product will disrupt the market by addressing consumers’ curiosity about their payments and anticipated returns over extended periods. He highlighted additional features such as a loan facility and premature withdrawal, emphasizing the product’s appeal to both policyholders and shareholders due to its guaranteed return aspect.
