LIC working on a new mobile app, ropes in BCG as consultant, says chairperson

Earlier, in an exclusive interaction with Moneycontrol, Mohanty said that the insurer will implement customer onboarding through its application.

The Life Corporation of India is working on a new mobile application for its digital services, said Siddhartha Mohanty, Chairperson on November 10. The country’s largest insurer has roped in Boston Consulting Group (BCG) for the application, he added.

“We are working on a mobile application and we have Boston Consulting Group (BCG) as our consultant,” Mohanty said at the post results press conference.

Additionally, the chairperson highlighted that the company has worked on a total transformation of its digital services. “Total transformation of our digital services has been done to cater our digital services to the customers,” Mohanty said.

Also read: LIC in talks with banks to ramp up partnerships, says MD Jagannath

Earlier, in an exclusive interaction with Moneycontrol, Mohanty said that the insurer will implement customer onboarding through its application.

“In the current year, we will see a digital transformation. Customer onboarding through digital means will also be implemented in the current year. So, you will find a lot of change in our operations in digital mode,” said Mohanty.

LIC Q2

The insurer on November 10 reported a 50 percent fall in net profit at Rs 7925 crore for the quarter ended September 30, 2023. The insurance behemoth had reported a net profit of Rs 15,952 crore in the year-ago period.

The insurer, in a press release said that it had changed its accounting policy in September 2022 regarding transfer of amount (Net of Tax) due to which YoY profit figures cannot be compared.

The drop in profit was largely due to the fall in the net premium income. For Q2FY24, net premium income stood at Rs 1.07 lakh crore, falling by 19 percent from Rs 1.32 lakh crore in the year-ago period.

Also read: LIC Q2 Results: Net profit at Rs 7925 cr, net premium income falls to Rs 1.07 lakh crore

The insurer's gross non-performing assets (GNPAs) stood at 2.43 percent as against 5.60 percent in the previous year. Its net NPA remained unchanged from the year-ago period.

The value of new business (VNB) for the six-month period ended September 30, 2023, was Rs 3,304 crore as compared to Rs 3,677 crore for the six month ended September 30,2022. The net VNB margin for the same period remained flat at 14.6 percent.

The insurer, in the first six months of FY24, sold 80.60 lakh policies versus 83.59 lakh policies in corresponding period last year.