As part of its digital transformation initiative, insurance giant Life Insurance Corporation (LIC) is exploring the establishment of a fintech unit. To oversee this project, named DIVE (Digital Innovation and Value Enhancement), LIC has appointed a consultant and initiated a comprehensive digital transformation exercise.
“Our goal through Project DIVE is to provide best-in-class digital initiatives for all our stakeholders, including customers, intermediaries, marketing personnel, and everyone else,” LIC Chairman Siddhartha Mohanty stated in an interview.
The initial phase of project DIVE will focus on transforming customer acquisition. Currently, customer acquisition is achieved through three channels: agents, bancassurance, and direct sales.
“Customers no longer need to visit our offices. They can access our services from the comfort of their homes using their mobile phones,” Mohanty explained. “We are also placing a strong emphasis on fintech and will leverage its potential to expand our business.”
Mohanty disclosed that LIC is exploring the possibility of establishing its own fintech arm as a business model. However, he declined to provide further details, stating that it is premature to discuss specifics at this stage.
In the current financial year, LIC has already partnered with three fintech companies as corporate agents for product distribution. Additionally, the insurer plans to launch 3-4 new products during the current financial year to accelerate new business premium growth into the double digits.
Mohanty expressed optimism about the upcoming product launch in the first week of December, anticipating that it will gain significant traction in the market. He revealed some features of the new product, including assured returns and a lifetime income of 10% of the sum assured upon maturity.
“We are confident that this new product will disrupt the market, as everyone wants to know exactly how much they are paying and what returns they can expect after 20-25 years,” Mohanty stated.
The new product will also offer loan facilities and premature withdrawal options. According to Mohanty, guaranteed return products are beneficial to both policyholders and shareholders.
