FinTech: Indian Mega-Insurer LIC Mulling FinTech Arm

November 27, 2023 | FinTech, News

“Customers need not come to the office. Sitting at home through their mobile they can access our required services.” – LIC Chairman Siddhartha Mohanty

Life Insurance Corporation (LIC) (NSE: LICI) is embarking on a digital transformation journey with the establishment of a fintech unit. Under the project DIVE (Digital Innovation and Value Enhancement), LIC aims to implement cutting-edge digital initiatives for various stakeholders, including customers, intermediaries, and marketing personnel. The first phase of this transformation focuses on customer acquisition, involving agents, bancassurance, and direct sales.

LIC Chairman Siddhartha Mohanty emphasized the shift towards a seamless digital experience, where customers can access services such as claims settlement and loans effortlessly through their mobile devices. The vision is to eliminate the necessity for customers to visit physical offices, promoting convenience and accessibility. (Hindustan Times)

In a strategic move, LIC is therefore contemplating the creation of its own fintech arm, exploring the potential for business expansion. While details about this initiative remain undisclosed, Mohanty highlighted the company’s commitment to harnessing fintech’s capabilities to enhance its operations and broaden its market reach.

During the current year, LIC has enlisted three fintech companies as corporate agents to facilitate product distribution. The insurer plans to launch 3-4 new products in the fiscal year, aiming for double-digit growth in new business premiums. One such product, set to launch in December, promises assured returns with a unique feature: policyholders receive 10% of the sum assured life-long after maturity.

Mohanty anticipates that this innovative product will disrupt the market by providing transparency on costs and expected returns over an extended period. Additionally, the new product will offer features like loan facilities and premature withdrawal, aligning with LIC’s commitment to serving the interests of both policyholders and shareholders.

Related Story: Flourish Ventures Raises $350M To Build Financial Inclusion Across The Globe

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