Ensuring Protection and Prosperity

Empowering NRI’s diversify their investment portfolio with LIC International – A trusted partner in the GCC for more than three decades

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Pradeep Mishra, General Manager, LIC International UAE.
Pradeep Mishra, General Manager, LIC International UAE.

Published: Fri 26 Jan 2024, 10:42 AM

Since 1989, the life insurance provider is helping NRIs achieve financial goals with unique insurance and saving plans. Pradeep Mishra, General Manager at LIC International, UAE, highlights its important role and future growth plan of the company.

Could you provide information on the operations of LIC International in the UAE and details about its global presence?

The GCC operations commenced in 1989 with headquarters in Bahrain. In 2005, the company inaugurated a fully registered Branch office in Dubai, operating under UAE Federal Law Number 6 of 2007. Subsequently, in 2016, a fully-fledged branch was established in Abu Dhabi. LIC International, a subsidiary of LIC of India, is predominantly owned by LIC of India with a 99.7 per cent stake. Despite being headquartered in Bahrain, the branches in the UAE contribute significantly to the majority of life insurance sales within the GCC. The 34-year journey of LIC International stands as a remarkable narrative, embodying the commitment to realising the dreams of prosperity for numerous NRIs in the UAE.

What are the commonly preferred financial products and services from your company, accessible to NRIs residing in the UAE?

Our extensive experience in the region has afforded us a profound comprehension of the market dynamics, and LIC, as a reputable brand in the life insurance sector, commands a substantial market share. The company has successfully fostered a robust brand connection with the Indian diaspora, attributing this accomplishment to the meticulous design of products that align with the financial ethos prevalent in India.

Leveraging our competitive edge, we offer a comprehensive range of plans tailored to every stage of life's cycle. From Protection and Critical Illness cover to Savings, Child Education, Annuity, Retirement, and Market-linked investment plans, we provide solutions that meet diverse needs.

In what ways does LIC International assist NRIs in diversifying their financial portfolios?

When it comes to investing, the first question that comes to mind is — ‘Invest in what?’ Every investor has his or her own appetite for risk and untimely decision can prove to be costly. In the aftermath of the COVID-19 pandemic, there has been a noticeable shift in customer priorities, with a heightened emphasis on Life Insurance and Health Insurance.

As an insurer, our primary focus is on customer education and facilitating a seamless financial planning journey. Considering that over half of the UAE population falls under the age of 40 (millennial group), signifying a demographic with abundant growth potential, the industry is poised for significant expansion. This particular group of investors is not only well-informed but also digitally savvy. Hence, a crucial aspect of our mission is to empower these NRIs, organically promoting insurance as a community service in alignment with their needs and preferences.

When discussing Market-Linked Investment products, could you please provide more details about this product and explain how it can be beneficial for young clients?

A Market-Linked Investment product is a type of investment instrument whose returns are directly linked to the performance of Global financial markets, such as global equity or debt markets. These products offer the potential for higher returns compared to traditional savings or fixed-income instruments, but they also come with a higher level of risk. LIC has recently introduced the ‘Systematic Wealth Creation Plan’, an investment plan based on a Global Equity Market-linked fund. This plan provides NRIs the opportunity to benefit from the performance of the global market, aiming for higher yields on their investments.

What sets LIC's products apart for NRIs is the distinct advantage of diversifying their investments into India Focused Equity Funds in US Dollar. This feature aligns their investments with the dollar-pegged UAE dirham, presenting a fundamental and increasingly attractive proposition.

Could you share insights into your company’s future growth strategies and plans in the UAE?

In the forthcoming years, our primary emphasis is on expanding and diversifying our portfolio to gain a competitive edge in the UAE market. At the company level, we have various initiatives in the pipeline, including product innovation and restructuring, along with the comprehensive digitisation of the entire customer relationship process. We also plan to forge strategic partnerships with new distribution channels and aim to broaden our reach by expanding our target customer base. In the long term, our strategic vision involves a heightened focus on enhancing the overall customer experience.

How has LIC utilised its digital portfolio, and how do you see social media contributing to serving and engaging potential policyholders?

Being the most trusted and largest insurer in UAE, LIC International firmly acknowledges that Life Insurance is a matter of solicitation, and the post-pandemic landscape has witnessed a transformation towards a digital 'new norm' in the working ecosystem. Our focus has been on establishing a robust digital infrastructure that facilitates seamless interaction among employees and engages customers virtually, aligning with market demands and providing us with a competitive advantage. Understanding the significance of social media in the insurance industry, we view it as a potent strategy for educating both our existing and prospective clients, thereby contributing to the growth and prosperity of the company. Recognising the booming nature of this sector, we are actively adopting various measures to effectively reach our target audience.

Could you provide a concluding statement or summary regarding LIC International's presence and operations in the UAE?

LIC International was started as more of a service to the NRI community than just as a Life Insurance company in GCC.

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