LIC Must Narrow Tech Gap with Private Insurers, DFS Secretary Says

DFS Secretary Urges LIC to Accelerate Digital Transformation

The Department of Financial Services (DFS) secretary, M. Nagaraju, emphasized the need for the Life Insurance Corporation of India (LIC) to accelerate its digital transformation, despite being an early adopter of technology. Speaking at the launch of LIC's two new mobile applications, Nagaraju expressed his concern about the insurer's recent lag in technology adoption.

LIC, being the dominant player in the insurance sector, must set benchmarks for the industry, Nagaraju stated. The company carries the responsibility of contributing to India's goal of building a modern, inclusive, and secure future. The insurer has launched MyLIC, a customer-facing app, and Super Sales Saathi, designed for intermediaries, both of which aim to offer a seamless, secure, and fully integrated digital insurance ecosystem.

The new apps feature instant premium payments, policy tracking, paperless loans, e-KYC, and AI-driven sales tools for agents. While welcoming the move, Nagaraju urged LIC to match the pace of private players and startups that are reshaping customers' expectations. He emphasized that insurers must become digitally agile and powerful, warning that without a digitally responsive architecture, they risk losing relevance among younger consumers.

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A key gap in LIC's digital transformation is the underutilization of data, Nagaraju stated. The insurer has massive data that has not been effectively leveraged, and Nagaraju called on LIC to leverage the available data more effectively. India's low insurance penetration remains another concern, and Nagaraju stressed the need for awareness and youth-focused products to address this.

To expand reach, Nagaraju advocated for multilingual access, stating that everything should be done in multiple languages so that even high school-educated adults can understand. While LIC's apps promise improved customer experience and agent productivity, Nagaraju emphasized that trust and simplicity must remain central.

| Comparison of LIC's Current Status and Expectations | | --- | --- | | Current Status | Expectations | | Lags behind in recent years in technology adoption | Match the pace of private players and startups | | Underutilizes data | Leverages available data effectively | | Limited multilingual access | Expands reach through multilingual access |

Nagaraju also stressed the importance of leadership depth for LIC's future, saying that a CEO's legacy is measured by the HR they leave behind. He concluded by emphasizing that LIC stands for trust and must build on this foundation while modernizing to support India's long-term financial needs.

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