LIC's digital transformation; sells over 1 million policies through Ananda App

The Life Insurance Corporation of India (LIC), the country's largest insurer, achieved a significant milestone with its Agent Assister Ananda App - a digital route to sell policies, selling over 1 million policies during FY24.

"It is a matter of extreme pride that we have comfortably crossed the 1 million policies mark through the Ananda App. I would like to recall that during FY21-22, and FY22-23, we had sold 2,74,000, and 8,11,000 policies, respectively, through Ananda App," said the company during an investors' meet.

In FY24, LIC completed 1,158,805 policies through the Ananda App, marking a 42.84 per cent growth compared to FY23 when 811,278 policies were sold via the app.

"We have completed 11,58,805 policies through this app during the year ended March 31st, 2024, as compared to 8,11,278 policies for the comparable period ending March 31st, 2023, thereby, registering a growth of 42.84 per cent on year-on-year," said LIC.

LIC introduced Ananda (Atma Nirbhar agent's new business applications) in 2020, where an agent can seamlessly call the customer, enter the customer's details in the app and then send a link to them to pay the premium.
During the investors' meeting, LIC also revealed plans to enter the health insurance sector, in alignment with the central government's plans to introduce composite licensing by amending the IRDAI (Insurance Regulatory and Development Authority of India) Act.

"We are selling health insurance products. Though these are not indemnity products, six benefit products, we are quite experienced. But looking at the scenario, this composite license for insurers can be a game-changer. So we have done, we are doing some internal work ourselves to occupy some space in the health insurance segment," the company said.

A parliamentary panel has suggested introducing a composite licence for insurance companies which will enable them to offer life and general insurance products, including health, under one entity.
A composite licence will reduce the costs of insurance companies and reduce their compliance hassles as they can run different insurance lines under one roof. Insurance companies can innovate their product line, especially in life and health insurance, as they will be able to integrate and analyse data from people's life and health records.

Current regulations prohibit insurance providers from offering both general and life insurance policies through a single entity. To facilitate composite licensing, amendments to the Insurance Act of 1938, and the Insurance Regulatory and Development Authority Act, 1999, are required.

The company also mentioned it is considering inorganic growth strategies, such as acquiring stakes in other companies, to address the health insurance needs of society. However, these plans are still in the very preliminary stages.
"So far as this regulation is concerned, we as insurance companies, have placed before the regulator our views," the company added.
LIC's digital transition with the Ananda App highlights its commitment to leveraging technology for growth and efficiency. The company's strategic focus on health insurance indicates its readiness to diversify and expand its product.