The IPO-bound Life Insurance Corporation of India (LIC), which recently called for EoI (Expression of Interest) from bidders to provide consultancy services for its digital transformation, is likely to expect the consultant to chart out an inorganic as well as organic technology plan in line with its business strategy and also to address the “pain points”.
According to sources, the consultant would be expected to do gap analysis and the strategy would include procurement plans of recommended technology partners, solutions and infrastructure.
Strategy roadmap
It is to be noted that LIC had called for EOI from eligible management and strategy consultants who can evaluate its current IT setup, map it with current trends and best practices in BFSI and insurance sector in the country and globally, and articulate a strategy roadmap for business led digital transformation.
The consultant would be required to suggest best tools and processes for digital transformation, draw last mile adoption strategy as well as ensure that roadmap drawn is implemented as per the definite timelines through their continued consultancy at each point of time and milestone.
The drawn strategy should be in line with LIC’s business strategy with the aim of organisational growth, sustainable competitive advantage, increased productivity of intermediaries and creating unique as well as best value for its customers, according to the EoI document. The last date for submission of bids is January 17, 2022.
Omni-channel strategy
“With accelerated digital adoption and technological advancements, LIC in the next few years will focus on improving productivity and efficiency by focusing on using an omni-channel strategy and leveraging both digital and physical sales methods,” said a source close to the development.
The consultant would also be required to build effective practices in data governance, data management and data architecture and devise an integrated roadmap that brings together the various technology, digital, data and analytics capabilities.
The transformation would call for making a holistic assessment of the current organization and benchmark against Indian and global peers.
Benefits to insurer
LIC’s focus on harnessing technology capabilities to support customer connect and to drive operating efficiencies has augured well for the insurer. In FY-21, LIC collected 43 percent of premiums online (out of total collections) from around 26 percent in FY-19. During the period FY-19 to till date, LIC is estimated to have spent close to Rs 565 crore on information technology and adopting artificial intelligence.
The insurer has e-channels through which its intermediaries can register new proposals for insurance and issue new policies. The ANANDA app is a complete paperless digital platform for lakhs of individual agents while the PRAGATI app helps development officers to monitor the performance of its agents. This apart, there is LIC’s own website, which can be used by customers to purchase or redeem policies.
Increase productivity
LIC, sources said, plans to continue to implement various technological and digital initiatives to increase productivity, train its agents and employees, improve cost efficiencies, provide better customer experiences, provide a seamless customer on-boarding process and enhance its digital channels for payments.
The company is also in the process of implementing a new unique customer identification and de-duplication system, which will allow for more efficient cross-selling of products, simplify the customer experience, allow for customization of services, increase the efficiency of claims management as well as provide for better customer profiling and retention.
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