Insurance behemoth LIC is mulling to set up a fintech arm, either through strategic investments or by building one organically, as it looks to accelerate its digital transformation efforts.
In an interview to PTI, LIC CEO and MD R Doraiswamy said the insurer is actively engaging with fintech and insurtech startups to drive innovation and modernise its technology stack.
“Naturally, to meet the modernisation requirement and particularly to bring innovation, we are engaging both fintech and insurtech players,” Doraiswamy said, adding that LIC is also evaluating strategic investments in specialised players to enhance returns on policyholders’ funds.
The development comes as LIC ramps up efforts to modernise its IT infrastructure and business applications amid intensifying competition in the insurance sector.
Doraiswamy said the insurer has built significant in-house software development capabilities but continues to work with external technology providers for new platforms and infrastructure.
According to him, LIC is assessing multiple options, including potential strategic partnerships with fintech firms, though no final decision has been taken yet.
“Our first aim is to modernise our IT applications and become as agile and nimble-footed as possible to remain relevant in the competition,” he said.
Doraiswamy added that LIC is also exploring strategic investments in specialised technology players. “We are a big financial institution investing in multiple organisations and we also look at strategic investments in any specialised player as a way of improving the returns on the policyholders’ funds,” he said.
According to Doraiswamy, LIC’s technology strategy combines internal development with external collaborations.
“So, both go hand in hand… we are engaging the fintech players but whether it can be a strategic partner, we are looking at various options available and we may be coming up with something,” he said.
He said LIC’s immediate focus is on modernising its IT applications and enhancing organisational agility to remain competitive in the evolving insurance landscape.
This comes as India’s broader fintech sector continues to expand rapidly, with startups leveraging technology to simplify investing and insurance purchases. With the sector projected to reach $2.1 Tn by 2030, investor interest in emerging fintech startups remains strong.
India currently has 26 fintech unicorns, while the likes of Paytm, Pine Labs, MobiKwik are listed on the stock exchanges.
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