AI has enabled risk assessment and forecasting based on consumption of many variables at remarkable speed, shared KV Dipu, Senior President- Head Operations & Customer Service, Bajaj Allianz General Insurance in an exclusive interaction with Srajan Agarwal of Elets News Network (ENN)
In recent years, Bajaj Allianz GIC has actively pursued digital transformation strategies to streamline business processes and improve customer experience. Can you elaborate on the key elements of this digital transformation journey, how it has reshaped the core operations and the major challenges that you had to overcome in this process?
Bajaj Allianz General Insurance has actively pursued digital transformation even from pre-Covid days. The challenges one typically faces in this journey include mindset shift, legacy system modernisation and customer acceptance. The elements of our strategy include a “customer first, technology next” approach, moving away from a one-size-fits-all approach, bringing in multi-lingual capabilities, shift to the cloud and a holistic data management approach. The outcomes include a plethora of awards at various global, continental & domestic forums for our path breaking initiatives, excellent customer feedback in terms of the highest NPS scores conducted via third party research and a huge leap in terms of our digital servicing penetration.
Could you share your insights on the pivotal role of emerging technologies shaping the insurance sector and how Bajaj Allianz is harnessing these technologies to drive innovation and growth?
Bajaj Allianz General Insurance has always focussed on emerging technologies in terms of the difference we can make to our customers, intermediaries, partners and employees. Towards this end, the ability to join the dots and cherry pick the right set from the surfeit of technologies / tools available in the marketplace has been key. For instance, since the claim is the moment of truth in insurance, the move to leverage a combination of AI & photogrammetry to reduce motor claim processing time from days to 20 minutes (up to certain amounts) has been a pioneering move. Likewise, the integration of our AI-driven chatbot with voice platforms such as Alexa & Google Assistant to enable customers to avail of our services via sheer voice commands has been innovative.
From your perspective, can you discuss the specific ways in which AI has revolutionised the insurance landscape, particularly in terms of underwriting, claims management, and customer service?
AI has impacted the insurance landscape across many areas. In terms of claims, the example shared above is a case in point. For the customer, the impact is dramatic. Rather than wait for a surveyor and then go through the rigmarole of the entire process at the insurer’s end, the customer can now get the claim approved in just 2 clicks and 20 minutes up to certain amounts. In terms of customer service, AI-driven chatbots have helped firms navigate the sudden change in circumstances when call centres were shut down virtually overnight during the lockdown, and as customers became more familiar with bots, the surge in servicing by bots continues even to this day. As regards underwriting, AI has enabled risk assessment and forecasting based on consumption of many variables at remarkable speed.
As digital transformation accelerates, data privacy and security have become a significant concern. How is Bajaj Allianz GIC addressing these concerns, ensuring data integrity, and building trust among customers while embracing new technologies and digital solutions?
Data management comes with its own set of challenges in terms of privacy, security etc. We handle security via a combination of the best tools and extensive training of personnel. The former prevents attacks and the latter ensures that inadvertent acts do not blow up into big failures. As regards privacy, explicit consent and communication around benefits (standard product for standard information & customised product for more information) can help create the right level of trust.
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The rapid rise of insurtechs is disrupting the traditional insurance industry, offering innovative solutions and creating a more competitive landscape. How is Bajaj Allianz GIC responding to this dynamic environment, and can you elaborate on your company’s strategy for partnering with, competing against, or learning from these insurtech companies to continue driving digital transformation in the insurance sector?
The new kids on the block (read insurtechs) can either compete with established players or enter into symbiotic relationships for parts of the value chain. As regards competition, we had embarked on the digital transformation path even before Covid-19 and continue to focus on customer-focussed innovation and transformation. In terms of symbiotic relationships, based on mutual needs, partnerships can create value for customers at various points throughout the customer lifecycle.
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