LIC Must Accelerate Digital Efforts to Reach Insurance for All Target
Financial Services Secretary M Nagaraju has issued a clear directive to the Life Insurance Corporation of India. He wants LIC to maintain strong momentum in digital marketing. The secretary also emphasized adopting a mobile-first approach. These steps are crucial for achieving the national objective of insurance for all.
Digital Outreach Key to Expanding Coverage
Nagaraju spoke at LIC's strategy meeting in Mumbai. He stated that expanding digital outreach is vital for widening insurance coverage. Improved customer engagement, especially among first-time buyers and small-ticket policyholders, depends on this digital push. The secretary highlighted the need for persistent follow-up efforts. This will help improve persistency ratios, particularly for lower-value policies.
LIC's Systemic Importance and Financial Strength
The secretary flagged LIC's systemic importance to India's financial system. The insurance regulator IRDAI designates LIC as a Domestic Systemically Important Insurer. This D-SII status brings heightened responsibility. LIC's stability is closely tied to the nation's overall financial stability.
LIC demonstrates remarkable financial strength. The insurer manages consolidated assets worth Rs 57.23 lakh crore. Policyholders' funds yield 8.9 percent, and the solvency ratio remains strong. This substantial corpus could potentially support startup growth and alternative investment funds.
Product Portfolio Transformation and Digital Support
Nagaraju pointed to LIC's ongoing transformation of its product portfolio. The strategic shift focuses on higher-growth, non-participating products. Continued adoption of digital tools and mobile platforms will be key. These technologies will support this transition while expanding insurance penetration nationwide.
