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LIC (Photo: Shutterstock)
State-owned Life Insurance Corporation of India (LIC) has committed Rs 600 crore towards its digital transformation journey, said Sunder Krishnan, chief risk officer (CRO), LIC, on Wednesday. Additionally, the insurance giant is aiming to become completely “paperless” in two years’ time, he said.
Speaking at an event organised by the Bengal Chamber of Commerce in Mumbai, Krishnan said, “We have already hired a large system integrator for more than Rs 400 crore; we have hired a consultant for digital transformation for Rs 100 crore; and Rs 100 crore for agency transformation. So, in total, Rs 600 crore is being spent on digital transformation.”
Earlier this week, the life insurer announced that it had roped in tech giant Infosys to develop its next-generation digital platform, which will lay the foundation for building high-value business applications, including customer and sales super apps, portals, and digital branches for the corporation. This is part of the life insurer’s digital transformation programme – Digital Innovation and Value Enhancement (DIVE). The programme is aimed at strengthening the insurance company’s digital platform to provide a superior experience for its customers, field forces, partners, and employees.
Separately, LIC has appointed Boston Consulting Group (BCG) as a consultant.
In its 2023-24 annual report, LIC highlighted that DIVE is already in progress, and it is expected to transform the company’s operations across the value chain—from customer onboarding to claims settlement—and provide a “best-in-class” experience for both sales and customer service.
According to experts, LIC’s digital transformation initiative will enhance the customer experience.
“LIC is actually losing out on a lot of younger generation customers to newer insurance companies that offer a seamless experience and convenience. So, the user experience matters, given the demographic dividend of the country. A lot of the young population in the country want a better user experience and they believe that even other insurance organisations can be trusted, as trust is no longer the differentiating factor,” said Vivek Iyer, partner, Grant Thornton Bharat.
Meanwhile, a senior official from the corporation said that tech spending by LIC accounted for nearly 10–15 per cent of its total expenses.
“LIC’s digital upgradation has been slower, and the technology spending of the company is not reflected on its website. There is a gap between the technological initiatives of LIC due to its large size and its private sector peers. Programmes like DIVE will help reduce this gap,” said an insurance sector analyst.
LIC has also launched an agency transformation project, ‘Jeevan Samarth,’ to meet the evolving needs of customers and strengthen the bond between customers and agents. A T Kearney has been appointed as a consultant for the project.
First Published: Sep 18 2024 | 7:04 PM IST
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