The Life Insurance Corporation (LIC) of India has announced a tie up with insurance aggregator Policybazaar.com. The announcement comes ahead of the much-anticipated LIC IPO, which is part of the divestment plan of the government.
The insurance giant LIC and Policybazaar.com announced the tie up on Febtuary 3, Thursday in a press release. “LIC, the country’s pioneer in life insurance and Policybazaar.com have joined hands to offer a wide range of term and investment products to consumers. LIC brings along a legacy and a unique product niche for decades. The two companies formally initiated the Business on February 3, 2022,” Policybazaar said.
The online insurance aggregator further clarified that the move aims at facilitating seamless digital distribution of life insurance products. “This landmark affiliation aims at facilitating seamless digital distribution of life insurance products across the nation. The occasion was graced by the presence of top management from both companies, including Shri Dinesh Bhagat, Zonal Head, LIC – North Zone and Shri Sarbvir Singh, CEO, Policybazaar.com,” the release stated.
“LIC has been the pioneer and a dominant player in the life insurance segment ensuring financial protection for India’s masses. Policybazaar’s digital distribution channels will further help in accelerating insurance awareness and penetration across the length and breadth of India,” the statement noted.
Commenting on the agreement Policybazaar CEO Sarbvir Singh said, “With this alliance, our strategic objective is to expand our reach, especially in the smaller cities to ensure financial inclusion and social security. LIC has spearheaded the life insurance segment in the country and so this alliance will provide an amplified reach to people.”
“We are delighted to partner with them and look forward to providing protection to people across age groups, demographics and locations,” he added.
The LIC has for the first time tied up with any private aggregator to expand its footprint with this alliance. The state-owned insurer has so far relied on its vast network of agents to sell its policies.
The LIC IPO is expected shortly, the government has indicated time and again. In an interaction with News18 managing director Rahul Joshi after the Budget 2022 presentation, finance minister Nirmala Sitharaman said that the processes are in track.
“LIC IPO plans are going fine. It should happen this year itself. Money from the LIC IPO will come this year itself,” she said in an exclusive interaction.
The LIC stock launch will be the biggest initial public offering in India with the country pushing for a valuation of Rs 15 lakh crore, according to reports. Talking about the valuation, the finance minister said, “We will announce it at the time.”
Sitharaman on Tuesday announced in her Budget speech that the LIC mega public offer is “expected shortly”. She had, days before the Budget 2022 presentation, reviewed the progress of the IPO of LIC in a meeting with top officials of the ministry.