LIC plans digital platform to take on private peers

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Life Insurance Corp

MUMBAI : Life Insurance Corp. of India (LIC) plans to create a separate digital vertical to regain shrinking market share by reducing its dependence on an army of agents, capitalize on the digitalization trend and woo investors post its initial public offering.

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“We want to have an entire vertical which will be digital. This will be apart from our plan to review and refurbish our existing online channel,” Life Insurance Corp chairman M.R. Kumar told a pre-IPO meeting on Monday.

This is primarily due to Life Insurance Corp’s dependence on agents, who found it difficult to approach prospective customers amid lockdowns following the outbreak of the pandemic in 2020.

Life Insurance Corp’s new business premium income in April-December fell by 3.07% from a year ago to ₹1.26 trillion, while private insurers grew their new business income by 29.8% to ₹79,216.84 crore, according to data released by the insurance regulator.

LIC’s 1.36 million agents generate over 90% of premium income, while bancassurance and other channels contribute the rest.

“The (proposed) digital vertical will take into consideration everything that a customer wants or expects from online. If the customer wants to be assisted online, he can get it from the coming digital vertical. If the customer wants to buy a protection product completely online, he can avail it from the proposed digital vertical. We are hoping to launch it soon,” Kumar said.

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