Digital Transformation in Indian Insurance: Revolutionizing Customer Experience and Driving Financial Inclusion
CXOToday has engaged in an exclusive interview with Sriram Naganathan, President & CTO, HDFC ERGO General Insurance
- How amalgamation of insurance and technology is reshaping customer experience and driving financial inclusion in India?
The insurance industry, traditionally reliant on interpersonal interactions, has transitioned into a ‘phygital’ hybrid model with digitalisation, aligning closely with IRDAI’s initiatives on Awareness, Affordability, and Accessibility. Standard insurance processes like policy issuance, claim settlement, and pre-medical check-ups are undergoing digital integration, transforming customer experiences and streamlining operations. This not only enhances user satisfaction but also promotes financial inclusion by leveraging technology to reach remote areas, contributing to an Insurance-Inclusive India and contributing to IRDAI’s vision of ‘Insurance For All By 2047.’
Technologies such as machine learning, artificial intelligence, automation, and data analytics are digitising insurance processes. At HDFC ERGO, we have introduced multilingual support on digital platforms- (a) self-help chatbot ‘DIA’, which is available in both English and Hindi (b) AI-enabled WhatsApp bot ‘MyRA’ which offers assistance to customers in 12 languages. Similarly, we have also developed AI-powered insurance-led ecosystem ‘here’ app, which helps users get solutions to their health and motor related queries.
The governing and regulatory bodies are also actively aligning with the digital revolution to make insurance products accessible nationwide. Initiatives like ABHA and Bima Sugam leverage technology to extend insurance and automate processes across stakeholders, including insurers, policyholders, intermediaries, etc.
Further collaboration with IIB (Insurance Information Bureau), a data repository and analytics body, can help in addressing issues like under-penetration, NCB leakages, and fraudulent claims.
Apart from this, the rise of insurtech is playing a transformative role, facilitating a seamless connection between insurers and today’s digitally savvy customers. By bringing expertise in areas like AI, data analytics block chain, etc.; tech companies are reshaping the insurance landscape by introducing cutting edge solutions, enhancing customer engagement and fostering a more personalised and efficient experience.
- Tell us about ways to leverage big data and advanced analytics to enhance risk assessment and pricing strategies
Utilising big data and advanced analytics in insurance involves tapping into extensive datasets and sophisticated analytical tools to enhance risk assessment and pricing strategies. By analysing both historical and real-time data, insurers can discern patterns, trends, and correlations, leading to more precise risk evaluation. This, in turn, allows for the development of dynamic and personalised pricing strategies based on individual risk profiles.
Through the application of predictive modelling and machine learning algorithms, insurers can take data-driven decisions, elevating underwriting precision and overall risk management effectiveness. This approach enables insurance companies to revolutionise their risk assessment and pricing strategies by aggregating and scrutinising vast datasets, including historical claims, customer behaviours, and external variables like weather patterns. The result is the acquisition of valuable insights, allowing for the provision of hyper-personalised pricing to customers.
Moreover, predictive modelling and data analytics also play a crucial role in fraud detection, claim prediction, and loss mitigation. While many existing analytical models rely on structured datasets, there is immense potential to expand and incorporate unstructured data, enhancing the output of these models. The evolution of cloud technology, with seemingly unlimited computing power and advanced data platforms, presents a significant opportunity to drive business value through improved pricing models and proactive risk management.
As a ‘Customer First’ organisation, at HDFC ERGO we leverage advanced technologies like Artificial Intelligence, Machine Learning and Data Mining techniques to deliver seamless experience to our customers.
- How can insurance companies strike a balance between fostering innovation and maintaining crucial elements of trust and reliability in their services?
To strike a balance between fostering innovation and maintaining trust in insurance services, transparency is crucial. Clearly communicating how customer data is collected, used, and protected builds trust, and implementing strong cybersecurity measures reinforces the commitment to security and reliability. Various insurers are embracing technology to offer Do-It-Yourself models to facilitate seamless experience while fostering innovation. Additionally, the introduction of fraud control unit by insurers showcases a proactive stance in safeguarding against risks, maintaining a sense of security among policyholders.
Simultaneously, compliance with the Digital Personal Data Protection Act guarantees robust data protection measures and ensures security for customers. Implementing stringent development security and operational practices further fortifies the security of sensitive information, bolstering the overall reliability of the services.
In a nutshell, by combining transparency, agility and innovative DIY models, insurance companies can effectively navigate while maintaining unwavering trust and reliability in the dynamic digital landscape.
- How does HDFC ERGO adapt to the emerging risk and evolving customer needs in the current digitally driven world?
As a digital first organisation, we at HDFC ERGO adapt to emerging risks and evolving customer needs in the digitally driven world by embracing digital technologies and data analytics. Our shift towards a comprehensive digital approach, including chatbots and mobile apps, demonstrates our commitment to innovation. Further our strategic partnerships with institutions like IIT Bombay and collaborations with tech leaders like Google Cloud and Meta reflect our proactive approach to staying ahead in the digital landscape.
By leveraging data analytics, we gain insights into customer behaviours and emerging risks, allowing for agile adjustments to our product offerings and risk management strategies. Our proactive approach enables us to stay responsive to the dynamic landscape of the insurance industry, meeting evolving customer expectations and effectively managing emerging risks in the digital era.
