In the endeavor to realize ‘Insurance For All by 2047,’ LIC is set to play a substantial role, strategizing the introduction of a product tailored for rural landscapes. Chairman Siddhartha Mohanty, in conversation with PTI, emphasized the emphasis on extending coverage to rural masses genuinely in need of insurance. He anticipates an increased rural share contributing to the overall business portfolio in the days ahead.

Chairman Mohanty commended the regulatory body, IRDAI, for proposing ‘Bima Vistar,’ an integrated product comprising life, health, and property insurance. The forthcoming product distribution will involve the engagement of ‘Bima Vahak,’ following a women-centric model.

Prime Minister Narendra Modi’s vision for India to attain developed nation status by 2047, marking 100 years of independence, aligns with LIC’s objective. Despite being the world’s fifth-largest economy, India’s insurance penetration lags behind the global average.

In June, the Insurance Regulatory and Development Authority of India (IRDAI) introduced draft guidelines for ‘Bima Vahaks,’ aiming to establish dedicated distribution channels at the Gram Panchayat level.

The guidelines propose both Corporate Bima Vahaks and Individual Bima Vahaks. The former includes legal entities registered as per relevant laws and engaged by insurers. The latter comprises individuals appointed either by an insurer directly or by a Corporate Bima Vahak.

Simultaneously, LIC has embarked on a comprehensive digital transformation initiative, DIVE (Digital Innovation and Value Enhancement), led by a designated consultant. The primary focus of DIVE’s initial phase is the overhaul of customer acquisition processes.

Customer acquisition, traditionally executed through agents, bancassurance, and direct sales, will undergo a transformative shift. The subsequent phases will extend this transformation to other areas, ensuring seamless accessibility to services such as claims settlement and loans at the click of a button.

Chairman Mohanty envisions a future where customers can avail themselves of necessary services from the comfort of their homes, leveraging fintech capabilities. LIC is actively exploring the possibility of establishing its fintech arm as a viable business model.

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