LIC begins digital transformation, plans to launch new products for rural India

In a bid to achieve ‘Insurance For All by 2047’, LIC will play a significant role and to meet that objective it is planning to launch a product especially designed for rural areas.

“The focus would be how to cover maximum rural masses who actually need insurance. In coming days, rural share will also go up to our total business kitty,” LIC chairman Siddhartha Mohanty said.

He said to achieve the objective of ‘Insurance For All by 2047’, LIC will play a very significant role.

“I must thank the regulator. The regulator Irdai has already proposed ‘Bima Vista’, a composite product. The product will consist of life, health and property insurance,” he

New Delhi, Dec. 17:

said.

To sell those products Bima Vahak would be engaged, he said, adding, it will be a women-centric distribution channel model. As of now, India is the fifth largest economy in the world but insurance penetration is low compared to the global average.

In June this year, Insurance Regulatory and Development Authority of India (Irdai) came out with draft guidelines for ‘Bima Vahaks’, which seeks to establish a dedicated distribution channel at the level of Gram Panchayats.

The guidelines proposed corporate and individual Bima Vahaks for the distribution channel. Corporate Bima Vahak would be legal persons registered in accordance with the respective laws and engaged by an insurer.

Individual Bima Vahak could be any individual appointed by an insurer or appointed by a Corporate Bima Vahak.

Meanwhile, LIC has initiated a total digital transformation project Digital Innovation and Value Enhancement (DIVE) and appointed a consultant to steer the project. The insurer is also exploring options of having its own fintech arm.