In a bid to enhance shareholder value and boost its market share, the Life Insurance Corporation of India (LIC) is concentrating on five pivotal areas: digital transformation, human resource management, real estate divestments, product mix and investments.

Tuhin Kanta Pandey, secretary of the department of investment and public asset management (DIPAM), stated at a capital markets event, “These are some areas where LIC needs to constantly work on and it is doing that. LIC will keep gradually updating about these initiatives such as DIVE, etc.”

LIC, India’s largest insurance company, has faced volatile stock performance since its mega IPO listing and has lost significant market share to private players. To address these challenges, LIC is undergoing several strategic changes for “value enhancement”. Pandey emphasised that LIC cannot remain the LIC of the past; it has to evolve into the LIC of the future.

Pandey highlighted that the primary focus is on digital transformation through the Digital Innovation and Value Enhancement (DIVE) project, launched last year. This initiative aims to transform LIC’s customer acquisition processes through agents, bancassurance, and direct sales channels.

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Another key initiative is the ‘Jeevan Samarth’ agency transformation project. In collaboration with AT Kearney, LIC is conducting an end-to-end review of its existing agency framework to equip its workforce to meet the evolving needs of customers.

Beyond digital and agency transformations, the state-owned insurance company is also assessing its human resources (HR), real estate divestments, and investment portfolio, Pandey said.

LIC is diversifying its product offerings by increasingly adding non-participating products, which offer better margins for shareholders compared to participating products that pay dividends to policyholders.

Pandey also mentioned that the government expects to receive financial bids for IDBI Bank by the end of this financial year. Additionally, he indicated that the initial public offering of NTPC Green will likely hit the market this year. NTPC Green’s over Rs 8,000 crore IPO will be the biggest initial share sale by a public sector company since LIC’s Rs 21,000 crore IPO in May 2022.