LIC Plans Rural-Focused Insurance Product to Achieve ‘Insurance For All by 2047’
- ByStartupStory | December 18, 2023
In a strategic move towards achieving the ambitious goal of ‘Insurance For All by 2047,’ LIC (Life Insurance Corporation of India) is gearing up to launch a specially designed product catering to rural areas. Emphasizing the importance of extending insurance coverage to rural masses, LIC Chairman Siddhartha Mohanty stated, “The focus would be how to cover maximum rural masses who actually need insurance. In the coming days, rural share will also go up to our total business kitty.”
Acknowledging the significant role LIC plays in achieving the ‘Insurance For All by 2047’ objective, Mohanty expressed gratitude to the regulator, stating, “I must thank the regulator. The regulator IRDAI has already proposed ‘Bima Vistar,’ a composite product. The product will consist of life, health, and property insurance.” He revealed that to distribute these products, LIC plans to engage ‘Bima Vahak,’ a women-centric distribution channel model.
Prime Minister Narendra Modi’s vision to make India a developed nation by 2047 aligns with LIC’s mission. Currently, India stands as the fifth-largest economy globally, but insurance penetration lags behind the global average. To address this, the Insurance Regulatory and Development Authority of India (IRDAI) proposed ‘Bima Vahaks’ as a dedicated distribution channel, targeting Gram Panchayats.
The proposed guidelines distinguish between Corporate Bima Vahaks and Individual Bima Vahaks, where the former refers to legal entities engaged by an insurer and the latter could be any individual appointed by an insurer or a Corporate Bima Vahak.
Simultaneously, LIC has initiated a comprehensive digital transformation project known as DIVE (Digital Innovation and Value Enhancement). Mohanty highlighted the project’s objective to bring best-in-class digital initiatives for stakeholders, customers, intermediaries, and marketing personnel. The first phase will focus on transforming customer acquisition, including agent, bancassurance, and direct sale modes.
Mohanty affirmed, “Customers need not come to the office. Sitting at home on his mobile, he can access our required services…We are focusing on fintech as well and will harness its potential in expanding business.” LIC is also exploring the possibility of having its own fintech arm to further enhance its business model.
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