LIC plans foray in fintech space, strategic investment also on table: CEO Doraiswamy

LIC is weighing a fintech foray to modernize its digital operations, either through a strategic investment or an organic build, according to CEO and MD R Doraiswamy. In New Delhi, he told PTI that the insurer is engaging fintech and insurtech players to spur innovation and improve returns on policyholder funds. LIC has long built its own IT core, including a software development centre, while acknowledging it still relies on external IT service providers for new platforms. Doraiswamy stressed that internal development and external partnerships must go hand in hand as the company seeks greater agility to stay competitive.

With options under review, the executive indicated LIC could pursue strategic partnerships, though exact terms have not been disclosed. Asked about further dilution of government stake, Doraiswamy said LIC has been prepared since the IPO, and the government will decide timing and quantum. LIC’s 2022 listing raised about Rs 21,000 crore by diluting 3.5% of its stake, transforming the insurer from a wholly government-owned entity into a listed corporation. Listing requirements call for a public float of 10% to 15% at different schedules, but market volatility has prompted the government to postpone the timing of the next offering.