Insurance giant Life Insurance Corporation of India (LIC) is exploring the possibility of setting up its own fintech arm as part of a potential business model, although specific details about the initiative are yet to be finalised.
The state-run insurer has appointed a consultant to steer the project and is in discussions with potential partners. The fintech arm would help LIC to reach new customers, improve its operational efficiency, and develop new products and services.
LIC Chairman Siddhartha Mohanty told PTI in an interview that, “Our objective is to get best-in-class digital initiatives for all our stakeholders, customers, intermediaries, marketing people and everybody through the project DIVE.”
LIC utilises three primary modes for customer acquisition: agent, bancassurance, and direct sale, with the majority of new customers garnered via agents. The organisation is set to digitise claims settlement, loans and other services, creating greater efficiency and convenience for customers.
“Customers need not come to the office. Sitting at home on 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.
In line with this digital thrust, LIC is also considering creating its own fintech branch to further bolster its business model.
The firm has already partnered with three fintech companies this year to aid in product distribution and plans to launch 3-4 additional products within the current financial year, he revealed.
LIC is gearing up to bring a new product to the market in the first week of December, promising guaranteed returns, said Mohanty. He hopes that it will generate significant traction in the market. He further revealed that the feature-loaded product will provide assured returns and a lifelong pension of 10 per cent of the sum assured post-maturity.
The transparency of the policy, providing clear information about the premium payments and returns over a span of 20 to 25 years, is expected to be a game changer.
An added advantage of this product will be the provision for loan facilities and a premature withdrawal option. The chairman strongly believes that this guaranteed return product will be a major benefit to both policyholders and shareholders.
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