During this fiscal year up to October, Life Insurance Corporation (LIC) reported a 128 percent year-on-year growth in online sales of insurance products, and settled maturity claims and survival benefits worth more than 57,000 crores, said Managing Director Raj Kumar.
During COVID-19, the insurer was resilient, reaching out to individuals, he said. During the pandemic, alternative payment platforms such as Google Pay and PhonePe experienced ‘a massive reaction’ with over 42 percent of the premium being raised via the digital path, he said.
In all, 72 percent of the luxury collections took place in offices outside the conventional cash counters. Therefore, he said the digital route had gained prominence during the pandemic.
The company posted an investment income of more than ~ 1.49 lakh crore until November, recording a 20 percent growth rate. Mr. Kumar said in a statement that it had booked ~25,000 crores in profit through stock trading.
How LIC Agents Will Sell Life Insurance Policies Digitally
Life Insurance Corporation of India, the largest insurer in India, has taken the digital path to sell policies for the first time in its 64-year history. Although the intermediary will still remain with brokers, the sales process itself has moved online.
Company’s latest digital application called ‘ANANDA’, an acronym for Atma Nirbhar Agents New-Business Digital Application, would assist agents in selling policies via a paperless mode.
This is a big step, given that the company has a market share of 70%. Indeed, although private insurers have launched tablet-based purchases, this is the first time that public-sector insurers have digitized traditional-channel policy sales.
The company said the whole process would be done digitally without any physical interface, from the registration of the proposal to the completion of the proposal. This is in stark contrast to the conventional selling process, where agents hold physical forms and use calculators and mortality tables to illustrate the premium based on the customer’s age and risk profile.
This comes at a time when life insurers have steadily begun to see signs of market revival in the aftermath of the Coronavirus outbreak and subsequent state-wide lockdowns.
Data from the Indian Insurance Regulatory and Development Authority (IRDAI) showed that in October 2020, life insurers had a rise of 31.9 percent year-on-year (YoY) in new premiums at Rs 22,776 crore. Hereby reporting YoY growth of 36.1 percent at Rs 15,548 crore in October, Life Insurance Corporation beat the industry. On the other hand, private insurers reported a YoY growth of 23.6 percent at Rs 7,228 crore.