LIC Chairman explores establishment of fintech division

Life Insurance Corporation (LIC), in its digital evolution known as Project DIVE (Digital Innovation and Value Enhancement), is considering establishing a fintech unit. According to LIC Chairman Siddhartha Mohanty, their primary goal is to implement top-tier digital initiatives across all stakeholders, emphasizing the transformation of customer acquisition as the initial phase.

While most new customers come through agents, LIC plans to extend this transformation to other areas, envisioning services like claims settlement and loans being easily accessible at the touch of a button, enabling customers to access services from the comfort of their homes via mobile devices.

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Mohanty highlighted LIC's focus on harnessing fintech's potential for business expansion, even contemplating the creation of an in-house fintech division. Notably, LIC has already onboarded three fintech companies as corporate agents this year, aiming to launch 3-4 new products this fiscal year to bolster double-digit growth in new business premiums.

Scheduled for launch in early December, LIC anticipates significant market interest in a new product offering assured returns. Mohanty elaborated that this policy ensures lifelong returns of 10% of the sum assured after maturity, providing clarity on payments and returns over extended periods.

He emphasized that this innovative product, equipped with features like loan facilities and premature withdrawal options, aligns with the interests of policyholders and shareholders alike.