LIC Accelerates Digital Push, Aims for Full Online Operations Soon
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LIC is in the middle of its most aggressive digital overhaul ever, with the government’s finance secretary stating that the insurer plans to move to fully digital operations in the next couple of months, building on its multi‑year Project DIVE transformation. The strategy aims to retain LIC’s vast agency network but wrap it in a “phygital” model—mobile‑first, paperless, app‑driven—so that everything from policy purchase to claim settlement can be done online or via assisted digital channels.
The Big Vision: Fully Digital LIC
DFS Secretary M. Nagaraju recently said that LIC is preparing to transition to a “fully digital platform” within about two months, likening the effort to the technology‑led transformation seen at SBI. This does not mean shutting physical branches or agents, but ensuring that every core process—onboarding, policy servicing, renewals, loans, and claims—can be executed digitally end‑to‑end.
This vision sits on top of Project DIVE (Digital Innovation and Value Enhancement), LIC’s enterprise‑wide programme to modernise its technology stack, data systems, and customer experience so that it operates as a digital‑first insurer while still leveraging its legacy scale. Management messaging around DIVE repeatedly frames LIC’s goal as becoming a “global digital champion” while remaining India’s dominant life insurer.
Project DIVE and Tech Partnerships
Under Project DIVE, LIC has committed around ₹600 crore specifically to its digital transformation, aiming to go fully paperless within roughly two years. The programme spans the entire value chain—customer acquisition, underwriting, policy servicing, collections, and claims—rather than being limited to front‑end apps.
LIC has engaged Infosys to build a next‑generation digital platform that will power customer and agent “super‑apps”, omnichannel portals, and digital branches, giving the insurer a modern backbone similar to private peers. Consulting support from Boston Consulting Group helps on operating‑model redesign, while partners like Avaamo underpin what is billed as one of the world’s largest intelligent virtual assistants, able to handle queries for hundreds of millions of policyholders.
New Digital Capabilities on the Ground
On the customer side, LIC has launched online‑exclusive products such as LIC Digi Term and LIC Digi Credit Life that can be bought entirely through its website, targeting tech‑savvy, do‑it‑yourself buyers who prefer digital over agents. There is also a direct‑to‑customer (D2C) channel push with self‑service portals, WhatsApp‑based premium reminders and payments, and LIC Digital apps that consolidate policy details, servicing, and grievance redressal in one place.
For distribution, LIC’s “One Man Office” initiative extends its ANANDA platform (the digital new‑business tool) into a full mobile office for agents, allowing them to complete most sales and post‑sale servicing—address changes, loans, revival requests—on a tablet or smartphone at the customer’s doorstep. The MarTech platform launched in February 2025 adds data‑driven, hyper‑personalised campaigns across email, SMS, app and web, improving lead conversion and cross‑sell opportunities.
Why LIC Is Pushing So Hard on Digital
Several pressures are driving this acceleration:
Competitive threat: Private life insurers and new‑age fintech platforms already offer fully digital journeys, forcing LIC to match them on speed and user experience to defend market share, especially in urban and younger segments.
Scale and efficiency: With nearly 29–30 crore policies in force, manual and paper‑based processes are costly and error‑prone; digital workflows promise faster turnaround, lower operating cost ratios, and better compliance.
Customer expectations: Policyholders now expect real‑time updates, self‑service and 24x7 access; chatbots, IVAs and super‑apps are LIC’s answer to these expectations.
Regulators have also nudged insurers towards better disclosures, online access and standardised digital processes, which LIC is using as an opportunity to leapfrog rather than patch existing systems.
Impact on Agents, Employees and Customers
LIC is clear that its agency force will remain central, but increasingly empowered by digital tools instead of paper proposal forms and branch‑heavy workflows. Agents get faster issuance, easier KYC and servicing, and data‑rich dashboards from the MarTech and DIVE platforms, which can raise productivity and income potential.
For employees and back‑office staff, the shift towards paperless operations and digital branches demands reskilling but also promises less repetitive clerical work and more analytics‑ and relationship‑oriented roles. Customers, in turn, benefit from quicker policy issuance, simplified service requests, omni‑channel support (branch, agent, app, IVA) and eventually a single unified view of all LIC products and interactions.
Key Pillars of LIC’s Digital Push
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