LIC Explores Fintech Venture Amid Digital Transformation Drive, Chairman Siddhartha Mohanty Reveals

LIC's Digital Transformation Drive

LIC, a titan in the insurance domain, is navigating the digital sphere by contemplating the establishment of a fintech unit, a move aligned with its digital transformation initiative. Siddhartha Mohanty, Chairman of LIC, shared insights into this strategic shift, emphasizing the comprehensive digital transformation project named DIVE (Digital Innovation and Value Enhancement).

Objective of DIVE Project

Mohanty articulated the primary objective of the DIVE project: to deliver top-notch digital solutions benefiting all stakeholders—customers, intermediaries, marketing personnel, and beyond.

"In our pursuit of excellence, we aim to revolutionize the customer acquisition phase initially," Mohanty stated. Highlighting the pivotal role of agents, bancassurance, and direct sales in customer acquisition, he affirmed plans to revolutionize these channels.

Enhanced Customer Experience

The imminent transformation aims to facilitate hassle-free access to services, including claims settlement and loan procedures, via a seamless digital interface. Mohanty emphasized a customer-centric approach, envisioning a scenario where customers can avail themselves of services from the comfort of their homes, leveraging mobile platforms.

Focus on Fintech Potential

Expressing keen interest in harnessing the potential of fintech, Mohanty revealed LIC's exploration of establishing its own fintech arm. However, detailed specifics about this endeavor remain premature for disclosure.

Fintech Integration and New Product Launches

Mohanty emphasized LIC's strategic collaboration with three fintech companies as corporate agents, underscoring the insurer's proactive approach in product distribution. Furthermore, the company has slated 3-4 new product launches within the current fiscal year, aiming for substantial growth in new business premium.

Upcoming Product Launches

Mohanty offered a sneak peek into LIC's forthcoming product launch scheduled for the first week of December. He highlighted its unique feature of assured returns, ensuring policyholders receive 10% of the sum assured lifelong after maturity. The product also encompasses loan facilities and premature withdrawal options, designed to cater to policyholders' interests and foster shareholder value.

Anticipating Market Impact

Confident in the disruptive potential of the upcoming product, Mohanty expressed anticipation for its impact on the market. He emphasized customers' eagerness to comprehend their investments' returns over extended periods, aligning with the product's focus on transparency and long-term benefits.

LIC's strides in embracing technology, coupled with its customer-centric approach and innovative product launches, signal a transformative phase in the insurance landscape.

Key Highlights

• LIC is exploring the possibility of setting up a fintech arm to expand its business and harness the potential of financial technology.

• The company is in the first phase of its digital transformation project, which is focused on transforming customer acquisition.

• LIC plans to make services like claims settlement, loans, and other services available at the click of a button.

• The company is also planning to launch a new product in the first week of December that will provide assured returns and a 10% lifetime payout.

Benefits of Setting Up a Fintech Arm

• Expanded reach: A fintech arm would allow LIC to reach a wider audience and offer its products and services to a more diverse customer base.

• Increased efficiency: Fintech can help LIC to automate many of its processes, making them more efficient and less costly.

• Improved customer experience: Fintech can help LIC to provide its customers with a better experience, such as by making it easier to apply for policies and file claims.

LIC's Digital Transformation Journey

LIC is committed to using technology to improve its business and provide its customers with the best possible experience. The company is investing heavily in digital transformation initiatives, and the exploration of a fintech arm is just one example of this commitment.