A CTO Should Not Just Foresee the Future, But Also Architect It: Sriram Naganathan, President & CTO, HDFC ERGO General Insurance

In an era where technology is redefining customer experiences and operational efficiencies, HDFC ERGO General Insurance has been at the forefront of integrating cutting-edge solutions into its business fabric. In an exclusive interview with Express Computer, Sriram Naganathan, President & Chief Technology Officer, HDFC ERGO General Insurance shares how the company is strategically leveraging AI, generative AI, and fintech partnerships to accelerate digital transformation, unlock profitability, and create superior, hyper-personalised experiences for customers and partners. From launching AI-powered ecosystems to championing innovation through InsurTech collaborations, Naganathan offers deep insights into the evolving insurance landscape and the expanding role of the CTO in shaping the future of the industry.

How do you plan to strategically integrate AI into the organisation’s IT roadmap, and what challenges do you foresee in this implementation?

The insurance industry over the last decade has embraced a ‘phygital’ model, offering technological experiences to customers with human touch. Technologies like artificial intelligence, machine learning have accelerated complete digitisation of traditional processes like policy issuance and claim settlements, enhancing user experiences and hyper-charge operational efficiency. The superior buying and claims experience fuelled by digital technologies is now helping deliver services to every nook and corner of the country in alignment with IRDAI’s vision of ‘Insurance For All By 2047’.

Driven by our digital first approach, at HDFC ERGO, we have also harnessed the power of technology to introduce multilingual chatbots like ‘DIA’ and ‘MyRA,’ to ease worries of customers and partners. The extent of usage has also diversified to rural areas where we provide crop insurance through our ‘PiHU’ bot which is voice enabled and multi lingual. We also offer bulk of our services on consumer social platforms like WhatsApp through AI powered bots. Our contact centre too is powered largely by AI powered voice bots. There are also niche use cases like fully automated inspection of break-in insurance and claims assessment of motor policies which are driven by AI models. All the customers need to do is to capture a few images of their vehicle guided by prompts from an advanced AI engine and the assessment output is given in few seconds.

We have launched two ecosystems – Here. for our customers and 1Up for our partners which are fully powered by AI models running on top of a data lake on the cloud. We have democratised our wealth of anonymised data to deliver immense value in the form of nudges and prompts to end customers through numerous use cases which are available on these ecosystems. We have adopted the Google Cloud Platform for modern application builds powered by an AI enabled data lake, as we have successfully transitioned into a cloud-native, data-driven ecosystem on Google Cloud. We are now using GenAI to power our customer / partner facing Super Apps with tailored personalised guidance, nudges and ensuring hassle-free journeys. GenAI is also being actively used within the tech organisation for driving efficiency on build and testing of various digital assets. We have also extended co-pilot access as a productivity enhancer to several power user cohorts and have found good productivity improvements on their day to day tasks. Furthermore, partnership with Insurtech companies is also playing a crucial role, enabling hassle-free connection between insurers and tech-savvy customers. By blending technologies like AI, deep data analytics, into the insurance landscape, these tech companies are driving personalised and superior experiences. We run a ‘shark tank’ style event called TechPreneur for InsurTech’s to present and partner with us on their innovative offerings. The theme for this year was GenAI where we had over 150 registrations out of which 3 winners were announced with whom we are at advanced stages of completing pilots.

 If we talk about challenges, I would like to see them as opportunities for innovation. If a company is transparent about data collection and use, implements strong cyber security measures, and commits to the Digital Personal Data Protection Act, it becomes easy to strike a balance between technology and customers’ trust.

 What are your insights on unlocking profitability through payment innovations and optimisation?

Investment returns are a critical part of running a sustainable insurance business in India given the pressures on underwriting profits. Hence it becomes imperative to realise premium at the earliest so the investment function can maximise returns. Fintechs continue to come up with innovative solutions in this space. In recent times frauds in the payments space have increased considerably in sophistication as well as frequency. AI helps in a big way to derisk from such payment frauds. To unlock profits from payments, it is imperative to optimise transaction processes, reduce costs, and maximise revenue opportunities. Here AI and data analytics can play a big role by detecting frauds and offering personalised payment experience. Innovative payment methods like mobile wallets and contactless payments can garner customer attention in embedded journeys and help drive revenue growth.

 Further, partnerships with fintech companies enable insurers to leverage latest technologies and reach the last mile. As a digital insurer of scale, we at HDFC ERGO make use of technology to reach out to our customers for all of their sales and servicing needs. We have also partnered with various digital payment providers to help our customers transact at their choice of platform.

How do you perceive the traction for GenAI in the industry?

GenAI is gaining traction because of its unique capability to handle large volumes of data sets with fast response times to decode output in the form of text, images, audio and video. Whether it is retail, entertainment, finance or health, GenAI is making a paradigm shift in every sector and propelling the demand for personalised and intuitive experiences. Additionally, GenAI is encouraging companies to innovate and accelerate the adoption of AI powered solutions in the industry. The most remarkable impact I would say is AI is helping companies to form a holistic relation with their customers which is not just sales driven and goes beyond products and services.

 It has now been established that GenAI can help drive significant improvements in operational efficiency through automation and we have started deploying GenAI models in several servicing use cases. This gives us significant benefits in redeploying scarce resources to handle complex use cases which need supervision and intervention.  

At HDFC ERGO General Insurance, we have launched Here. app, one-of its kind insurance led ecosystem that takes care of customers’ anxiety related to health, motor, pets and cyber and helps us deliver value way beyond insurance journeys. We now use GenAI in Here. to power custom personalised experiences according to demographics. Beyond increased operational efficiencies, GenAI has the potential to drive deepening customer ties and opening new avenues of innovations. By analysing huge volumes of data near real-time, GenAI can help in creating personalised insurance plans. It can also analyse patterns near real-time and help in detecting frauds and enhancing underwriting processes. GenAI powered voice bots, chatbots and virtual assistants can extend automation in customers’ interactions, offering instant service 24×7.

In your view, how has the role of the CTO evolved, and what multi-dimensional responsibilities does it encompass today?

There is a common notion that a good leader should foresee the future but I would like to say that according to me if you want to survive and thrive in today’s fast paced technology driven world, a good leader or specifically a CTO should not just foresee the future but also architect it. Gone are the days when a CTO was associated only with technical operations. Today, a CTO also spearheads innovation, cyber security, sustainability efforts, thus playing a 360-degree role in alignment with the company’s overarching growth and profitability goals. With the upgrade in technology, the role of a CTO will become more dynamic thus making him / her the torchbearer of the company’s success. The day is not far when the CTO acts as a copilot to the CEO in steering all aspects related to driving profitable growth.