LIC's Pioneering Role in 'Insurance For All by 2047' Vision: Chairman's Strategic Plans

Life Insurance Corporation of India (LIC), the country's insurance behemoth, is stepping up to play a pivotal role in Prime Minister Narendra Modi's ambitious vision of achieving "Insurance For All by 2047."

With innovative product designs, a dedicated rural distribution network, and a comprehensive digital transformation plan, LIC aims to bridge the insurance gap and empower every Indian citizen.

Reaching the Underserved: Rural Focus with "Bima Vahaks" and Custom Products

Recognizing the low insurance penetration in rural areas, LIC is prioritizing outreach. "The focus would be how to cover maximum rural masses who actually need insurance," emphasized Siddhartha Mohanty, LIC Chairperson.

He announced the launch of a tailored insurance product specifically designed for rural needs. In line with this focus, LIC will leverage the "Bima Vistar" framework proposed by the Insurance Regulatory and Development Authority of India (IRDAI). This composite product offering life, health, and property insurance under one umbrella aims to simplify access for rural customers.

Empowering Women, Empowering Rural Communities: "Bima Vahak" Distribution Model

Taking another progressive step, LIC plans to utilize "Bima Vahak" as a women-centric distribution channel. This initiative empowers women at the grassroots level by appointing them as Bima Vahaks or insurance agents at the Gram Panchayat level.

By leveraging their local understanding and trusted relationships within the community, Bima Vahaks can bridge the gap between formal insurance and rural populations.

Embracing the Digital Age: "DIVE" Propels Customer-Centric Services

LIC isn't just focusing on product and distribution channels; it's also undergoing a significant digital transformation. The "Digital Innovation and Value Enhancement (DIVE)" project aims to provide best-in-class digital services across the board, from customer acquisition to claims settlement and beyond.

Transforming Customer Acquisition: Convenience at Your Fingertips

In the first phase of DIVE, LIC will streamline customer acquisition. Traditionally reliant on agents, LIC is now focusing on direct online sales and bancassurance partnerships. With this shift, customers can access insurance products and services conveniently from the comfort of their homes, eliminating the need for physical visits to offices.

Fintech on the Horizon: Expanding Business Scope and Reaching New Heights

Recognizing the potential of fintech, LIC is exploring the possibility of establishing its own fintech arm. This venture could further enhance business growth and allow LIC to tailor its offerings to diverse customer needs in the rapidly evolving digital landscape.

a Vahak', a distribution channel focused on women empowerment, to effectively sell these products and reach rural areas.

Empowerment through Distribution:

IRDAI's draft guidelines advocate Corporate and Individual 'Bima Vahaks' as dedicated distribution channels at the Gram Panchayat level, further expanding insurance outreach.

LIC's Digital Transformation - Project DIVE:

Digital Evolution Initiative:

LIC's ambitious digital transformation project 'DIVE' (Digital Innovation and Value Enhancement) aims to deliver top-notch digital solutions for stakeholders, optimizing customer acquisition as a priority in the initial phase.

Future Transformation Goals:

The comprehensive digital transformation seeks to streamline services beyond customer acquisition, focusing on hassle-free claims settlement, loans, and various other services, ensuring convenience at customers' fingertips.

Fintech Integration and Innovations:

Harnessing Fintech Potential:

Acknowledging the power of fintech, LIC plans to harness its capabilities for business expansion, intending to offer services accessible through mobile devices.