Infosys-Oracle Blog

LIC – Life Insurance Corporation of India is the largest life insurer of India with an asset base of USD 160 billion and insuring 220 million lives over past 50 years.

It has recently come out with innovative schemes to revive insurance policies of individuals who defaulted on premiums during the global recession of 2009. As per a leading source, it was estimated that around 7 million policies were closed in 2009 alone. The schemes include:

a)    Revival of policies with all riders by paying premium along with interest at one go

b)    Payment of premium in easy instalments but revive the policies with immediate effect

Such schemes are turning out to be a win win situation for both LIC and the Individuals since the corporation would maintain a healthy bottom line by retaining customers and the individuals would gain by revival of their policies

Taking a cue from LIC, software companies should also start taking measures especially for their Banking and Financial industry clients who were hit hard by recession. For E.g. Software Companies acting in ERP space can identify:

a)    Client programs which were called off during 2009 – Review these programs and present how effectively they can be carried forward by remediation or relooking at value proposition

b)    Clients would now like to analyze trends like Return on Investment and Pay Back period for investments made in IT, one needs to include such metrics in their proposals and project delivery

c)    Advice client to spend in the right place – Post recession clients have become risk averse hence one should suggest projects which would provide value for money in short to medium term  with long term vision still intact

d)    Device innovative billing methods like “Pay as you deliver” or “Milestone based payment”

e)    Identify new opportunities created post recession due to Mergers and Acquisitions

Like LIC, some of the above measures would definitely strike right chord with client and would go long way in redefining the existing relationships and also creating new value based relationships, thereby creating a win win situation by having a shared vision for Client IT strategy