LIC (Photo: Shutterstock)
State-run Life Insurance Corporation of India (LIC) has committed Rs 600 crore for its digital transformation process, Sunder Krishnan, chief risk officer at LIC, said on Wednesday. Moreover, the insurance giant aims to become a completely “paperless” company in two years, 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 over 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 has hired tech giant Infosys to develop its next-generation digital platform, which will lay the foundation for building high-value business applications, including super apps for customers and sales, portals, and digital branches for the corporation. This is part of the life insurer’s digital transformation program – Digital Innovation and Value Enhancement (DIVE). The program aims to strengthen the insurance company’s digital platform to deliver a superior experience to its customers, field staff, partners, and employees.
LIC has also appointed Boston Consulting Group (BCG) as consultant.
In its 2023-24 annual report, LIC highlighted that DIVE is already up and running and is expected to transform the company’s operations across the entire value chain (from customer onboarding to claims settlement) and deliver a “world-class” experience for both sales and customer service.
According to experts, LIC’s digital transformation initiative will improve customer experience.
“LIC is actually losing a lot of younger generation customers to newer insurance companies that offer a seamless and convenient experience. So, user experience is important, given the demographic dividend in the country. A large part of the country’s young population wants a better user experience and believes 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 corporation official said LIC’s technology spending accounted for nearly 10-15 per cent of its total expenditure.
“LIC’s digital upgradation has been slower and the company’s technology spending is not reflected on its website. There is a gap between LIC’s technology initiatives due to its large size and those of its private sector peers. Programmes like DIVE will help bridge this gap,” said an insurance sector analyst.
LIC has also launched an agency transformation project, ‘Jeevan Samarth’, to meet the changing needs of clients and strengthen the bond between clients and agents. AT Kearney has been appointed as a consultant for the project.
First published: September 18, 2024 | 19:04 IS
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