LIC is mulling an entry in India's fintech space
What's the story
Life Insurance Corporation of India (LIC) is looking to enter the fintech space. The company's CEO and MD, R Doraiswamy, said that they are considering setting up a fintech arm either through strategic investment or organically. This move is part of LIC's efforts to meet its growing digital needs and modernize its operations.
Strategic partnerships
Engaging with fintech and insurtech players for innovation
Doraiswamy revealed that LIC is actively engaging with both fintech and insurtech players to bring innovation into its operations. He said, "Naturally, to meet the modernisation requirement and particularly to bring innovation, we are engaging both fintech and insurtech players, and we are getting a lot of new things being developed by such players." This strategy has already led to several new developments from such companies.
Investment strategy
Strategic investments in specialized players
As a major financial institution, LIC is also looking at strategic investments in specialized players. Doraiswamy said these investments could help improve returns on policyholders' funds. This dual approach of engaging with fintech and insurtech players while also making strategic investments shows LIC's commitment to modernizing its operations and improving its financial performance.
Digital transformation
Digital transformation journey
Doraiswamy also spoke about LIC's digital transformation journey. He said the company was one of the early adopters of digital technologies and has built its own core competence in developing business applications. "We have sizable number of people working in our IT department creating the IT solutions for us but that does not mean that we can be totally self-dependent," he added.
Stake dilution
Prepared for further stake dilution by the Centre
When asked about further stake dilution by the Centre, Doraiswamy said, "We have been prepared right from day one." He added that LIC was ready for such actions when it prepared for its IPO. The government had raised some ₹21,000 crore by diluting a 3.5% stake in LIC through an IPO.