Life Insurance Corporation of India (LIC) is implementing Digital Transformation and adjusting its product mix to enhance returns for stakeholders, according to chairperson Siddhartha Mohanty. The company has strategically shifted its focus from participating products to non-participating products, as these offer better margins for shareholders. This change has resulted in a marked increase in non-par premiums and a shift in the overall premium portfolio.
LIC is also actively working to expand its channel mix, with a particular focus on growing the Bancassurance and direct marketing/digital marketing channels. The Bancassurance channel has shown strong growth in recent years, and LIC aims to increase its share in the total premium portfolio to over 10%. Similarly, the company plans to grow its direct marketing/digital marketing channel, leveraging Digital technologies and introducing new products such as Jeevan Kiran.
In terms of technology, LIC is developing a customer onboarding project that will be conducted entirely through digital means. Currently, the company’s Ananda mobile app allows for the issuance of policies in a paperless and contactless manner, with over 160,000 agents actively using the app. LIC is also undertaking a total digital transformation project, aiming to conduct over 95% of its operations digitally.
While LIC has transitioned from a customer-centric approach to prioritizing the interests of retail shareholders since listing, the company believes that protecting the interests of policyholders ultimately benefits shareholders. LIC’s investment strategy adheres to regulatory guidelines and involves a balance of investments in government securities and equity markets. The company takes advantage of market movements to create value for policyholders and shareholders.
Addressing concerns about investments in Adani Group entities, LIC states that its investments are regulated and overseen by multiple committees to ensure compliance with regulations and protect investors’ interests.
Since its listing, LIC has achieved its commitments to shareholders and other stakeholders, demonstrating growth in premium income and implementing strategic changes. The company expects to continue creating value, generating profits, and fulfilling its commitments in the future.
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