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, LIC Chairman Siddhartha Mohanty said in an interview.
“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.
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, that services like claims settlement, loans 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, Mr. Mohanty said it will provide assured returns and after maturity, the policyholder will get 10% 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 facilities 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.
