Life Insurance Corporation of India(LIC) is considering deploying ‘bionic agents’ to support its agency workforce and boost digital sales capabilities.
“A strategy of deploying ‘bionic’ agents by extending tech support in the form of digital tools and analytics to the agency force would surely go a long way in building the 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,” MR Kumar, Chairman, said in LIC’s annual report for FY22 .
Focus on agency channel
LIC has a network of 1.3 million agents, a large section of which work in rural areas to ensure a pan India presence across socio-economic segments.
“The increased focus on IT enablers for the field force would aid higher persistency levels and enhanced customer satisfaction,” Kumar said, adding that in FY22 LIC saw a 70 per cent rise in the number of digital transactions.
Over 95 per cent of LIC’s individual business, in terms of premium, is sourced through the agency force and less than 3 per cent through the bancassurance channel, per the report.
LIC plans to diversify the channel mix while ensuring that its agents continue to be the “main distribution pillars”.
LIC has positioned itself as the insurer of choice and that is the reason it has been able to maintain its leadership position of around 65 per cent market share despite fierce competition, Kumar said.
LIC held a market share of 63.25 per cent in composite first year premium income in FY22. The insurer has 17 individual participating products, 17 individual non-participating products, 11 group products--including one credit life and one annuity product, and 7 rider benefits.
The share of participating business within the overall Individual business, in terms of APE (Annualised Premium Equivalent) was at a high 93 per cent in FY22.
Given that a dominant business mix comes from the participating business, LIC said that it will also look to increase its market share in the non-participating business.