Digital technologies are changing the Bancassurance business model, requiring partners to enhance customer engagement through digital channels. New high-tech, low-touch business models more effectively convert bank customers using InsureTech solutions, shared Varun Gupta, President & Chief Distribution Officer – Bancassurance, IndiaFirst Life Insurance Co Ltd in an exclusive interaction with Srajan Agarwal of Elets News Network (ENN).
With an evolving ecosystem of distributors, what strategies are you deploying to deepen relationships with your bancassurance partners while attracting innovative third-party distributors?
It is essential to understand the customer life cycle in Bancassurance. Customers are typically onboarded through a banking product, and at a later stage life insurance cross-selling is conducted to convert them into mutual customers. As a life insurance company, we remain committed to acting responsibly, keeping this reality in mind and prioritising a #CustomerFirst approach in all our actions. Key strategies to strengthen our partnerships with existing partners include offering customised products and integrating processes with banks to ensure a seamless customer experience.
At IndiaFirst Life, our partnership philosophy is “Accha Karte Hain, Saccha Karte Hain… Hamesha.” It is a commitment that defines our very purpose – creating lasting, positive impact in every life we touch. This reflects our #CustomerFirst ideology and the actions we
have taken over the last 15 years to build a company that secures lives and creates value for all its stakeholders.
Also, we continue to develop tailored solutions for modern distribution models. IndiaFirst Life was the first insurer to collaborate with Ola Mobility Solutions, offering innovative propositions for Ola customers, and providing micro life insurance products to many customers.
With the rise of Insurtech and digital-first consumers, how do you see the role of human touch evolving in the distribution process?
IndiaFirst Life was born digital. From day one (back in 2009), we have considered technology as an enabler in our journey of being #CustomerFirst. Our investment in technology has not just allowed us to be highly competitive in the market, it has also enabled us to constantly innovate and simplify the customer journey end-to-end.
Several behaviours are associated with the life insurance purchase journey, especially need creation and decision-making on product propositions. The need for life insurance may arise from life-stage triggers or interactions with intermediaries. With digital-first customers, decision-making has shifted, influenced by InsureTech companies and web aggregators using hyper-personalisation and DIY options.
While non-life insurance can be fully digitised, life insurance still depends on human interaction to generate need. Leveraging technology, such as transaction analysis in Bancassurance, can enhance sales by identifying triggers and approaching customers at optimal times. The future will involve a collaborative model where technology handles routine tasks, while human interaction builds trust and loyalty.
In an increasingly unpredictable market environment, how do you balance traditional and emerging distribution channels to ensure both risk mitigation and sustained growth opportunities?
IndiaFirst Life continues to deepen its distribution reach by leveraging relationships with its partner banks. Furthermore, we will widen our distribution network and increase contributions from reputed brokers, the Variable Agency model, and Credit Life partnerships to mitigate concentration risk.
Life insurance meets consumer needs like savings, growth, protection, and retirement planning. These needs vary across life stages and demographics, allowing traditional and emerging models to not only co-exist but also thrive.
Digital technologies are changing the Bancassurance business model, requiring partners to enhance customer engagement through digital channels. New high-tech, low-touch business models more effectively convert bank customers using InsureTech solutions. Co-investment in end-to-end direct-to-customer capabilities is essential for growth. This strategic investment mitigates the risk of losing customers who prefer digital experiences over in- person branch interactions.
Banks and insurers now leverage data analytics to better understand clients’ needs and offer personalised engagements. This paradigm shift disrupts traditional models and offers opportunities to transform Bancassurance partnerships by making customer interactions more efficient and targeted.
In a rapidly changing digital and regulatory landscape, what initiatives are you taking to upskill your distribution workforce and ensure they stay ahead of industry trends?
Until a few years ago, insurance sales primarily relied on the relationships established by intermediaries such as insurance agents, or their prospecting skills. However, with increased digital access and evolving customer behaviours, the overall proposition has become just as important as the customer relationship. The distribution workforce must now possess a comprehensive understanding of all aspects of the proposition that are crucial for customer decision-making. This includes not only a deeper knowledge of competitive products but also areas such as underwriting expertise and the claims process.
IndiaFirst Life has launched upskilling programs for distribution personnel to adapt to the evolving digital and regulatory landscape. These include industry trend training, access to digital tools, and ongoing sessions. “Ask to Win” enhances need-based selling skills, while the “Compliance Awareness Program” boosts regulatory compliance. “FinPro” and “FinPro 2” improve financial planning proficiency, and “Saturday Paathshala” ensures continuous education for the sales team. We promote adaptability and learning to prepare our team for future challenges and opportunities.
Also Read | Role of Bancassurance in the insurance industry
How do you see technology transforming IndiaFirst Life Insurance’s distribution strategy over the next five years? Are there specific tools or platforms you are betting on to enhance efficiency and customer outreach?
IndiaFirst Life aims to revolutionise distribution with technology, making it accessible, personalised, efficient, and customer-focused. Over the next few years, we will use AI tools and invest in innovative partnerships to offer faster and more customised experiences. As part of this vision, we have already implemented a top-tier platform for new business workflows and CRM. Along with enhancing and fine-tuning the existing platforms, we will be taking up the digital transformation of sales channels, widening usage of AI & ML, and adopting automation solutions.
As regulations grow more complex, we will automate compliance reporting to minimise non- compliance risks.
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