A STUDY OF IMPACT OF DIGITALIZATION ON GROWTH OF LIFE INSURANCE CORPORATION OF INDIA (LIC) AND SBI LIFE INSURANCE CO. – ANALYSIS OF MANAGEMENT SOUNDNESS

Digitalization in the Insurance sector has constantly played a very imperative role in the operations of
every insurance company. The swift innovation in the area of information and communication technology
has stood with serious challenges for the insurance industry in India. Digitalization has facilitate insurance
companies to collect premium easily and reduce operating cost. Sound management is crucial for the
financial stability of insurers. It is very difficult; however, to find any direct quantitative measure of
management soundness, the indicator of operational efficiency is likely to be correlated with general
management soundness. Unsound efficiency indicators could flag potential problems in key areas,
including the management of technical and investment risks. The efficient management shall reflect in
operating expenses, and gross premium, affecting overall operating efficiency of the insurance concerns,
reflecting management soundness. Thus, the research paper is an attempt to examine impact of
digitalization on growth of Life Insurance Corporation of India (LIC) and SBI Life Insurance Co. Ltd by
analyzing management soundness of both the companies.