Indian Economy News

Technology plays a significant role to reach more customers in life insurance sector: Managing Director (MD) of Life Insurance Corporation (LIC)

  • IBEF
  • November 1, 2023

According to Mr. R. Doraiswamy, Managing Director (MD) of Life Insurance Corporation (LIC), technology plays a significant role in creating awareness about life insurance. He also mentioned that the creation of awareness is important, especially in lower-middle-income groups. There are various microinsurance schemes and group covers to achieve the same and gain more customers.

Further, it was mentioned by him that technology has been playing a significant role in reaching more customers. Various companies are focusing on digital boarding, which will eventually help to improve persistence in this sector.

Mr. R. Doraiswamy also stated that people are not willing to write off the insurance premium. As the company is allowed to sell health insurance policies, it’s been a long time in the health market and hence it’s evident, if the company wants to reach the ‘insurance for all’ policy, it’s important to look for purpose before profit.

According to Mr. Naveen Tahilyani, Managing Director (MD) and Chief Executive Officer (CEO) of Tata AIA Life Insurance, the investment in capital is necessary to create awareness among people. It’s important to build awareness to make people realise the importance of life insurance. He further quoted that it’s important to spread awareness in order to create demand. However, a lot of people postpone buying life insurance due to the cumbersome process that exists now.

As there are around 11,000 branches across India as an industry. However, one bank has over 11,000 branches. Hence, it shows that investment is essential in terms of creating more centres across the country. It’s even more important to invest to reach in rural India by focusing on expanding reach, generating reach, and deploying technology.

Mr. Mahesh Balasubramanian, Managing Director of Kotak Mahindra Life Insurance Company stated that the insurance industry bore the brunt of the COVID-19 pandemic. There has been settlement of over Rs. 72,000 crore (US$ 8.64 billion) claims in a pandemic year. Though the business faced some issues, everything was done digitally.

Mr. Anup Bagchi, Managing Director and Chief Executive Officer of ICICI Prudential Life Insurance, stated that the insurance industry meets a couple of societal needs. One of the plans involves life protection, while the second talks about credit protection. There’s reinvestment risk and retirement planning, as there’s no other industry that meets societal needs.

There will be coverage of more and more people through bundled products says, Ms. Vibha Padalkar, Managing Director and Chief Executive of HDFC Life Insurance.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.