LIC boasts Rs 600 crore for digital shift, soon to be paperless in 2 years

State-run Life Insurance Corporation of India (LIC) has committed Rs 600 crore for its digital transformation journey, as per Sunder Krishnan, CRO.

The insurance company also aims to go completely "paperless" within two years. Experts believe that LIC's digital transformation initiative will improve the customer experience.

This is part of the life insurer’s digital transformation program – Digital Innovation and Value Enhancement (DIVE). The program is aimed at strengthening the insurance company’s digital platform to provide a superior experience to customers, field forces, partners, and employees.

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"As demographics shift and a younger population enters the economy, LIC is losing customers to newer insurance companies that offer seamless experiences and convenience. Today, user experience is paramount, driven by the country's demographic dividend,” said Vivek Iyer, partner, at Grant Thornton Bharat.

“The younger generation prioritizes ease and convenience, and no longer view trust as a differentiating factor; they believe other insurance organizations can be trusted equally. Despite maintaining the largest market share, LIC recognizes it is losing ground to newer entrants," Iyer added.

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“LIC’s digital upgrade has been slower and the technology spending of the company does not reflect 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 between the two,” an insurance sector analyst said.

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