India, June 1 -- Insurance behemoth LIC is mulling to set up a fintech arm, either through strategic investments or by building one organically, as it looks to accelerate its digital transformation efforts.

In an interview to PTI, LIC CEO and MD R Doraiswamy said the insurer is actively engaging with fintech and insurtech startups to drive innovation and modernise its technology stack.

"Naturally, to meet the modernisation requirement and particularly to bring innovation, we are engaging both fintech and insurtech players," Doraiswamy said, adding that LIC is also evaluating strategic investments in specialised players to enhance returns on policyholders' funds.

The development comes as LIC ramps up efforts to modernise its IT infrastr...