LIC to Strengthen Term Insurance Business, Expand AI Use Across Operations!

Life Insurance Corporation of India (LIC) plans to give greater attention to term insurance and increase the use of artificial intelligence (AI) across its operations over the next five years.  

The company is also looking at changes to its product portfolio as customer preferences shift towards guaranteed returns, market-linked insurance and retirement products. 

In an interview with Moneycontrol, Managing Director and Chief Executive R Doraiswamy said LIC wanted to make its operations more agile and improve its digital capacity. 

Greater Focus on Protection Insurance 

Term insurance is among the business segments LIC wants to expand. Doraiswamy said protection products had not received as much attention as savings and pension plans, despite the company offering pure term and return-of-premium policies. 

LIC has recently introduced a term plan for middle-income customers. It has also brought back cancer cover and health shield products, which provide fixed payouts for hospitalisation, cancer diagnosis and specified surgical procedures. 

The exemption of individual life insurance policies from GST has also supported term insurance sales. Doraiswamy said protection would account for a larger share of the company's business in the coming years. 

Guaranteed Products and ULIPs 

LIC currently offers savings plans, annuities, protection policies and unit-linked insurance plans (ULIPs). The company plans to review its offerings as customer requirements change. 

Doraiswamy noted that some younger customers were opting for guaranteed products because they offer clarity on the amount and timing of future payouts. ULIPs have also seen increased demand from customers looking to combine insurance with investment. LIC increased its focus on this segment around two years ago. 

Its distribution network covers 92% of India's districts, giving the insurer access to customers across different markets. The company plans to use feedback from its agents and data analytics to identify demand for new products. 

AI and Employee Requirements 

LIC is already using AI for customer onboarding, annuitant life certificates, renewal premium reminders and maturity claim documentation. It is also examining applications in underwriting, fraud detection and claims processing. 

The company has established a centre of excellence for AI. Doraiswamy said LIC was not considering workforce reductions due to automation and would instead provide employees with technology to improve productivity. 

Pension Business 

Doraiswamy expects annuity and pension products to become more important as individuals make their own arrangements for retirement.  

Limited social security coverage means a large section of the population will need to plan for its financial needs in old age. 

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Life Insurance Corporation of India (LIC) Share Price Performance  

As of November 9, 2026, 3:30 pm, LIC share price closed at ₹397.20, a 0.09% increase from the previous closing price. 

Conclusion 

LIC plans to increase its focus on protection insurance and expand the use of AI over the next five years. The company will also continue reviewing its savings, ULIP and pension offerings. 

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