Group 2

PROJECT
PROPOSAL
LIFE INSURANCE CORPORATION OF INDIA
CONSULTING COMPANY-EY
 Background and Context

The Life Insurance Corporation of India (LIC) is a centrally run government organisation (Estd. 1956) with its
headquarters in Mumbai, Maharashtra, India.
The Government of India's Ministry of Finance is the owner.
The company offer insurance and investment products to its customers.
The company has over 28 crore policyholders.
The company was completely government owned until 2022 when the government came out with an LIC IPO.
The IPO was oversubscribed by nearly three times.
 Background and Context

The company’s strategy key focus areas are-

To diversify the product mix and focus on non-participating products.
Launch new products based on customer and channel needs
Create optimum mix of distribution channels which focusing on agency network.
Enhance yields on investment portfolio

It also wants to increase digital processes all across to drive higher efficiency. The company intends to evaluate
its current IT setup and benchmark it to find the best practices in the industry. It is therefore, seeking help from
consultancy firms to enable digital transformation across the organization.

Relevant Questions

1. What processes does the client want to digitize or is the client looking for complete digital transformation?
2. The pace of digital transformation expected by the client.
3. The time available for digital transformation with the client.
4. The amount of money and resources available with the client to enable digital transformation.
 Customer Journey Map
Identify the product - research - select supplier - mode of purchase - make payment -
add options - customer service - renew policy - feedback - cancel policy

Commoditized Solution
 Solution Development Options

1. Artificial Intelligence and 3. ICR/OCR Technology

Machine Learning
Massive amount of Automate end-to-end
Client data processing claim processing
Development of Reducing the
2. Customer Relationship
customised products for Turnaround Time (TAT)
Management
customers Scalable solution for
Interactive chatbots
Reinvent the customer data management
for monotonous
experience journey
activities
Personalized customer
services
Increase in revenues
and profits
 Approach and Tools
Bottom Up Approach

Issue Tree

KPIs and business drivers

80/20 rule

RACEE matrix

Why-Why Analysis

How-How analysis
Liceria & Co.

Competitor
Analysis
Presentations are typically introduction, or speech
meant to inform, persuade, inspire, motivate, or
present a new idea/product.

67% 76%

Description 01
Presentations are typically
introduction, or speech
meant to inform.
Description 02
About The
Presentations are typically
introduction, or speech Analysis
meant to inform.
Current Scenario Dependency

Operating Expenditure

Operating Expense 90% of revenue through Agents

40,000

Market Share
30,000
75%

20,000
50%

10,000

25%

0
2019 2020 2021 2022
0%
2020 2021 2022
Recommendations

Reform its digital presence by either refurbishing its existing online portals and

application or by bringing in a completely new Digital vertical

Adoption of the Cloud and AI and using CRMs to make the process more seamless

and user-friendly for customers, while reducing the operation Cost.

Mould itself with current market and customer demands by setting a course for

Digital strategy through transformation and promoting innovation across the

entire value chain.

LIC needs to promote its product on the currently available digital platforms in

order to compete with the growing competition.

Putting more emphasis on Bancassurance which currently doesn't account for a

comparable premium generation source.

 Impact Effort Matrix

Reducing the dependency and

Implementing Digital

the huge commission LIC pay

transformation across the

to its army of
Agents and

entire value chain for a far

making it more efficient for

more efficient and productive

the rest to operate. process.

Impact
Promoting its product on every
Focusing the attention on

legit platform to make the

Bankassurance


to generate

products and services more

more revenue
accessible

Efforts
SWOT Analysis

Brand Image Organizational Cyber Threats Competition

Asset Base Culture Online services Changes in
Agent Network Poor advertising Shift to Governments
International strategies Prevention Upcoming
Subsidiary Overwork Social Media Technology
Various services Slow to respond Low cost Newcomers
PESTEL Analysis

POLITICAL ECONOMIC
Political Stability Business Cycle Stage

Changing Policies Inflation/Exchange rates

Bureaucracy and corruption Labor Market conditions

SOCIAL TECHNOLOGICAL
Demographic trends Social Media Marketing

Equality and Power distance Technological innovation

Social and Class distribution Research and Development

ENVIRONMENTAL LEGAL
Recycling and

Waste Employee protection

law
Management Consumer protection law
Renewable laws Intellectual property law
THANK YOU