LIC Plans to Deploy “Bionic Agents” to Boost Digital Selling Capabilities
life insurance company of india(LIC) plans to deploy “bionic agents” to support its agency staff and build digital selling capabilities.
“A strategy of deploying ‘bionic’ agents by extending technical support in the form of agency-strength digital tools and analytics would certainly go a long way in building core digital sales capabilities and exploring a win-win model where there is a convergence of digital along with the best human qualities of advice and engagement,” said Mr. Kumar, Chairman, in LIC’s FY22 Annual Report.
Focus on the agency channel
LIC has a network of 1.3 million agents, a large portion of whom work in rural areas to ensure pan-India presence across all socio-economic segments.
“The increased focus on IT enablers for field strength would contribute to higher persistence levels and increased customer satisfaction,” Kumar said, adding that in FY22, LIC saw an increase 70% of the number of digital transactions.
According to the report, more than 95% of LIC’s individual business, in terms of premiums, comes from the agency force and less than 3% from the bancassurance channel.
LIC plans to diversify the channel mix while ensuring its agents remain the “main pillars of distribution.”
The range of products
LIC has positioned itself as the insurer of choice and this is the reason why it has been able to maintain its leading position with around 65% market share despite fierce competition, Kumar said.
LIC had a market share of 63.25% of first-year composite premium income in FY22. The insurer offers 17 individual participating products, 17 individual non-participating products, 11 group products, including one credit insurance and an annuity product, and 7 additional guarantees.
The share of participating business in all individual business, in terms of APE (annualized premium equivalent) reached a high of 93% in FY22.
Since a dominant business mix comes from the participating business, LIC said it will also seek to increase its market share in the non-participating business.
September 03, 2022