Bajaj Allianz Life Insurance: Making Life Coverage Hassle-Free with Tech

The life insurance industry has traditionally relied on sales channels that involve a single salesperson leading the charge. However, Bajaj Allianz Life Insurance Company (BALIC), a private life insurer, has disrupted that model by using technology to engage customers through an intuitive, easy-to-use online platform called Digi Banca. The platform is a comprehensive solution that engages not only salespeople and distributors but also customers. Instead of waiting for a sales manager or distributor to initiate the process, customers can take the first step themselves.

With over 200 microservices on the cloud, BALIC’s core insurance platform is more agile and flexible, allowing the company to launch new products and make changes to the system within days rather than weeks. Goutam Datta, Chief Information & Digital Officer, Bajaj Allianz Life Insurance  in an interview shares several new tech and digital initiatives which have completely changed the traditional methods of onboarding and claim process for its customers. He also shares how BALIC is evaluating the usage of Generative AI and Blockchain for taking the customers’ experiences to a new level.

Over 200 Micro services on cloud
The insurance industry is unique in terms of managing a variety of products and processes. There are more than 20 life insurance providers in the industry, and almost all of them are using a core policy administration system to manage their business. However, due to the legacy systems in place, it often takes a while for the industry to adopt new business models or launch new products. BALIC Life, on the other hand, is the only life insurance company in India, and possibly the world, that runs its core insurance platform through a combination of around 200 microservices on the cloud, making it more agile and flexible.

“It only takes us a few days to launch a new product or make changes to the system, whereas it can take the industry weeks to make similar changes due to their monolithic systems. For example, we can easily expose certain parts of our system to a partner within a few hours, while others would take weeks. We are constantly working on such improvements, and in the next few quarters, we will be able to take full advantage of these benefits,” he shares.

Simplifying customer onboarding

The platform creates maximum opportunities to engage with customers early in the sales process and ensure they receive the information they need to make informed decisions. Beyond simple personalization, Digi Banca offers a fully personalised experience according to each customer’s background and needs. This approach increases the likelihood that customers will take action on branded communications.

“Our platform has been a hit with sales teams and marketing professionals, with a significant growth in usage over the past year. In addition to onboarding new customers, Digi Banca makes it easy for anyone to create a pre-field page where they can input identifying information. This makes goal-setting and choosing policies much more intuitive and less intimidating,” he informs.

While insurance can be a complicated field, Digi Banca has streamlined the process to provide a clear, concise solution to a challenging problem. As the customer journey continues to evolve, it is clear that platforms like these will play a significant role in shaping the industry’s future.

One of the standout services that the company provides is its WhatsApp bot engagement, which has won international recognition as the industry’s best. The company offers over a dozen small services that customers often need, and they can access them through the company’s systems, including the Whatsapp bot, portal, app, and open distribution systems. Customers will not have to queue or wait to get their problems solved as they can do it themselves by scanning a QR code.

“At the backend, too, we have been working hard to simplify things for the front-end users. The company aims to make its distributors’ lives easier and to make its customers’ journey effortless and efficient. All of this has been possible because of the company’s unique approach to innovation, which makes it stand out in the insurance industry.”

Claim process: A Moment of truth

According to Datta, Claims for any insurance company are the ‘moment of truth’.It’s the moment that we, as insurers, have to prove our worth and deliver on the promises we’ve made to our customers. After all, people buy insurance policies to take care of eventualities, and when those eventualities occur, we must be there for them.

“At BALIC, our claim ratio is 99.04%. This is no small feat, considering that each policy and claim is a unique event. Often, customers may have multiple policies with us, and it’s possible they may not have all the necessary details when they reach out to us to file a claim. However, our system is equipped to handle such situations, scanning through all our databases and tagging all the policies a customer has with us, and processing their claims accordingly,” Datta puts in.

The company understands that the claims process can be complex, involving various banking and regulatory aspects. Therefore, it takes extra care to ensure that each claim is legitimate and paid to the right person. In case of any anomalies competent people can investigate the matter and ensure that any issues are resolved promptly.

Impact of Generative AI in Insurance

The impact of generative AI is going to be huge and will touch every industry, especially, BFSI. Generative AI can mimic human behaviour, and therefore, it will play a significant role in addressing these concerns. There are many cases where generative AI can come in handy for insurance companies, such as addressing the nuances and angularities of different products. Generative AI can engage meaningfully with customers, even resolving their requirements, and we can also use it to capture system requirements.

Datta explains, “Almost all of us are using conversational bots today, but with generative AI, we will be able to have mature conversations with our customers, employees, and partners, increasing the depth of topic coverage manifold. It will soon be able to configure visuals based on our conversations, leading to more customised outcomes. We are sure there will be many more innovative uses of generative AI soon.”

Role of Blockchain in Insurance

While discussing various tech stacks and their importance, Datta also shared a glimpse on Blockchain. Blockchain technology is a game-changer, particularly in situations where multiple parties are involved.

“We recognise the need for collaboration to implement a blockchain to make quick decisions. It cannot make things happen on its own, so it partners with multiple entities to arrive at actionable solutions,” he adds.

Despite being an essential tool, the Indian insurance industry is still in the early stages of adopting blockchain technology, mainly due to confidence in alternative systems. However, in the next one to two years, the industry is expected to make significant strides in implementing blockchain technology. The only requirement is for the industry to place their trust in the technology and be willing to adopt smart contracts to leverage the benefits that blockchain provides.

“By adopting blockchain technology, the Indian insurance industry can address any delays or confusion caused by intermediaries and streamline their operations, providing efficient and quick services to customers,” Datta concludes.

Stay tunned for an insightful video interview with Goutam Datta, Chief Information & Digital Officer, Bajaj Allianz Life Insurance