Siddhartha Mohanty, Chairperson, LIC, administering the Pledge of Preamble to the employees of the corporation on the occasion of Constitution Day on Sunday
”Our objective is to get best in class digital initiatives for all our stakeholders, customers, intermediaries, marketing people and everybody through the project Digital Innovation and Value Enhancement (DIVE),” LIC Chairman Siddhartha Mohanty said
Mumbai:
As part of its digital transformation exercise, insurance behemoth Life Insurance Corporation (LIC) is exploring the possibility of setting up a fintech unit.
LIC has initiated a total digital transformation project DIVE (Digital Innovation and Value Enhancement) and appointed a consultant to steer the project, said LIC Chairman Siddhartha Mohanty.
”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.
Sources said Boston Consulting Group(BCG) has been appointed as the consultant to plan and execute Dive.
In the first phase, the customer acquisition part is going to be transformed, he said. Customer acquisition is done through three modes–agent, bancassurance and direct sale.
LIC gets most of its new customers through its agents. Subsequently, other areas would see transformation, he said, adding, services like claims settlement, loan and other services will be made available at the click of a button.
”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.
LIC is also exploring options of having its own fintech arm that can be developed as a business model, he said. Asked to share further details on fintech, he said, it is premature to talk about it.
It is to be noted that LIC has added three fintech companies as corporate agents so far in the current year for product distribution. The insurer has lined up 3-4 new product launches during the current financial year to accelerate new business premium growth in the double digit.
LIC is going to launch one product in the first week of December, he said, hoping that it will attract a lot of traction in the market. Sharing some features of the new product, Mohanty said it will provide assured returns and after maturity, the policyholder will get 10 per cent of the sum assured life long.
He exuded confidence that the new product will create disruption in the market as everybody wants to know how much he or she is paying and the returns one would get after 20-25 years.
In addition, he said, loan facility and premature withdrawal would also be a feature of the new product. Guaranteed return products are in the interest of policyholders and shareholders, he said.
Meanwhile, LIC celebrated Constitution Day-Samvidhan Divas on Sunday .
In the spirit of celebration, Mohanty administered the pledge of Preamble to all employees of the Corporation through virtual mode.