Page 80 - Life Insurance Today July - December 2020

of policies or premium amount re- Policy in the comfort of their homes/ Indian Embedded Value (IEV) report-
tained with an insurer across different offices without having to meet the ing framework and calculate IEV of LIC
time periods), LIC has been focusing on Agent / Intermediary in person, for the necessary disclosures for the
digital payment modes and ensuring thereby throwing a new level of oppor- proposed IPO of LIC," said the RFP
constant contact with its customers. tunity in the purchase of Life Insurance issued by the Department of
Additionally, its special revival cam- policy. Investment and Public Asset
paign has also helped bring in business Management (DIPAM).
back to the books. The event was marked with the re-
lease of an e-training video for the It has, accordingly, sought bids from
Interestingly, total surrenders Agents, depicting the salient features firms to work with the life insurer to
amounted to Rs. 7,352 crore between of the application and the process develop IEV, in line with the require-
April and August this year, down from from introduction to completion of a ments of the relevant Acts and regu-
Rs. 9,133 crore last year. "The de- Life Insurance policy. lations and to provide support during
crease in surrender is heartening as it the IPO process.
could imply that people are increas- The launch had generated tremendous
ingly appreciative of the importance of enthusiasm among the Marketing Of- "The Global Actuarial Firm would be
a life risk cover," adds Kumar. ficials and Intermediaries of LIC of In- required to work with the appointed
dia. The first Life Insurance policy un- Actuaries and Management of LICI to
der the Paperless Digital application mutually agree on an appropriate
LIC launches Atma Nirbhar was issued by the Chairman which was methodology to be used in the calcu-
Agents New Business Digi- followed by issue of New policies across lations of IEV and determine IEV that

tal Application the Zones of the Corporation. complies with the requirements of Ac-
tuarial Practice Standards and Guid-
Life Insurance Corporation of India ance Notes," the RFP said.
Chairman of LIC of India said that
launched its first Digital Application, ANANDA will mark a new chapter in
“ANANDA”, an acronym for Atma realising the Dreams of its Marketing According to the document, the Cen-
Nirbhar Agents New Business Digital Intermediaries to use Digital Applica- tre is looking to sell a minority stake
Application, recently. in LIC. The end date for submitting bids
tions as a Marketing instrument.
is December 8, and a pre-bid meeting
The Digital application is a tool for the The launch was done by M R Kumar, will be held on November 26.
on boarding process to get the Life Chairman, LIC of India through Video
Insurance policy through a Paperless Conferencing, in the presence of the The selected actuarial firm may also
module with the help of the Agent / Managing Directors, T C Suseel Kumar, be required to interact with different
Intermediary. It is built on paperless Mukesh Kumar Gupta, Raj Kumar and advisors and stakeholders as well as
KYC process using Aadhaar based e- other Senior Officials of the Corpora- regulators, including IRDAI and SEBI,
authentication of the Life Proposed. tion. specify the 'scope' of the data audit to
be performed by the auditor, review
ANANDA is a first of its kind in the In- Ministry floats request for iterations of the final results, and also
dian Life Insurance industry with LIC of provide inputs and review relevant
India pioneering the process through proposal to appoint actu- sections of the IPO offer.
its in-house IT enabled systems. This arial firm for LIC's IPO
tool has been brought out at the right Central government has floated a re- Finance Minister Nirmala Sitharaman
time, to enable and empower the quest for proposal to appoint an actu- had outlined plans to list LIC in the
Marketing force of LIC to face the cur- arial firm to calculate the embedded Union Budget 2020-21, along with a
rent challenges and propel insurance value of the life insurance behemoth. target of Rs. 2.1 lakh crore for pro-
selling to a higher level. With social ceeds from disinvestment. The
distancing being the new normal, pro- "In view of the recent announcement timeline for the listing is still unclear.
spective customers can avail the facil- by the Government of India in the Bud- The government has appointed
ity of taking a New Life Insurance get 2020-21, LIC needs to develop an transactions advisors for the IPO. R

"Your age doesn't earn you respect, your behavior does."

80 July - December 2020 Life Insurance Today