“Insurance for All by 2047” is not just an aspirational vision but a pressing necessity to align with India’s socio-economic goals. To make this a tangible reality, the industry and its stakeholders must work in unison to drive awareness, accessibility, and affordability across all customer segments, shared Amit Mehta, Principal Officer – Insurance Business, Tata Motors Finance, in an exclusive interaction with Srajan Agarwal of Elets News Network (ENN). Edited excerpts
Q. With your extensive experience in the field of insurance business, what key trends do you see shaping the insurance industry in India over the next decade?
Digitisation is revolutionising insurance, making it more accessible and shifting customer perception from discretionary expense to necessity – a shield that secures families, assets, and livelihoods.
In an environment where growing credit awareness and social uncertainty coincide, insurance has emerged as a key pillar in the lending ecosystem, providing stability for both lenders and borrowers. For NBFCs, integrating insurance through cross-selling enhances customer experience while protecting portfolios and assets.
For me, the future of ‘Insurtech’ looks promising. The next decade of insurance and lending ecosystems will hinge on adopting innovative, tech-driven approaches that prioritise inclusivity and accessibility. This focus will ensure that fiscal resilience reaches even the most marginalised communities.
I foresee AI, ML, big data processing, and IoT inputs playing a pivotal role in reshaping the sector. Technology is set to movethe industry from generic offerings to highly tailored, targeted solutions.
By leveraging these advancements, insurers can provide “specific” cost-effective products that are essential for price-sensitive economies like India’s, driving deeper insurance penetration, especially in tier- 2, tier-3, and tier-4 cities.
This evolution ensures that every individual has access to the safety net they need to sustain in an increasingly dynamic and uncertain world.
Q. At Tata Motors Finance, you have been implementing customer-centric strategies. Could you share some specific innovations or approaches that have significantly impacted customer satisfaction in the insurance domain?
In the commercial vehicle industry, vehicles are high- ticket assets that drive the logistics business. However, these vehicles also face significant risks due to factors such as road accidents, theft, natural disasters, and mechanical failures, which can lead to substantial financial losses. In this context, insurance becomes indispensable as it provides the necessary protection to secure both the vehicle and the value of the asset.
As an IRDA-licensed corporate insurance agent and a leading player in the automotive financing industry, Tata Motors Finance is well-positioned to recognise and address customer pain points. We offer carefully curated insurance products, empowering businesses and fleet owners to make informed decisions.
These solutions help manage risks and mitigate financial setbacks, ensuring business continuity and minimising operational downtime. They include add-on covers aligned with loan amounts, credit life insurance linked to loan disbursals to protect families from loan burdens in case of death, hospi-cash and loan waiver covers, and financing options for insurance premiums, enabling customers to manage premiums without disrupting cash flow.
These offerings collectively form part of a holistic, customer-centric approach designed to deliver convenience, financial security, and peace of mind.
By integrating these 360-degree insurance options into the lending journey, we are simplifying the entire process for our customers. This integration ensures a seamless experience, allowing them to access and manage their insurance policies without the hassle of dealing with multiple stakeholders. It not only streamlines the customer journey but also enhances the value we provide at every touchpoint, reinforcing our commitment to a customer-first approach.
Q. What role do automotive financiers like Tata Motors Finance play in contributing to the goal of “Insurance for All,” particularly for underserved or rural populations?
We understand that disbursing a loan is only one part of the equation. Equally important is ensuring that our customers are protected, and this is where insurance plays a pivotal role.
For Tata Motors Finance, insurance offerings go far beyond being a supplementary product—it is a strategic lever that strengthens the financial resilience of our entire lending portfolio. By safeguarding asset-collateral preservation, we not only protect the vehicles financed but also provide our customers with tangible benefits that enhance their financial security.
Our teams in tier-2 and tier-3 cities play an essential role in educating customers about insurance products. They ensure that customers understand the full value and importance of insurance, particularly in regions where awareness may be limited.
In essence, when an NBFC lends a loan with one hand, the other must offer insurance—creating a comprehensive and robust financial solution suite for the customer. This dual approach is vital in bridging the insurance gap, especially for underserved or rural populations who may not have access to adequate risk management solutions.
We intend to play a pivotal part in the “Insurance for All” endeavour, providing the right insurance solution to each of our customers. This effort fosters an inclusive ecosystem where all customers can access the protection they deserve. With this approach,
our customers can move forward with confidence, knowing they are insulated against unforeseen financial setbacks.
Q. What do you see as the biggest challenges in expanding insurance penetration in India, and how are organisations like Tata Motors Finance addressing these barriers effectively?
Expanding insurance penetration in India holds immense potential but also highlights the need for improvements to build customer trust and satisfaction.
One key challenge is enhancing after-claim services, which often shape the customer’s overall experience with insurance. Customers look for policies that not only provide coverage but also offer ease, speed, and transparency in the claims process.
Simplifying and demystifying policy terms across insurers plays a critical role in addressing this. Clear, easy-to-understand policies empower customers to make informed decisions and build confidence in insurance products.
At Tata Motors Finance, we address these barriers with a customer-first approach. Leveraging our pan- India presence, we stress of educating customers about the importance of insurance, simplifying policy terms during onboarding, and providing proactive support to ensure a seamless claims experience. This approach helps us build trust, increase accessibility, and contribute to a more inclusive insurance ecosystem.
Q. The vision of “Insurance for All by 2047” aligns with India’s socio-economic goals. In your opinion, what key steps should the industry take to make this vision a reality?
“Insurance for All by 2047” is not just an aspirational vision but a pressing necessity to align with India’s socio-economic goals.
To make this a tangible reality, the industry and its stakeholders must work in unison to drive awareness, accessibility, and affordability across all customer segments.
At a macro-economic level, there is potential for simplifying regulatory frameworks, offering tax relief and incentives can encourage innovation and extend the reach to rural and underserved regions, thereby widening the insurance exposure.
In times ahead, leveraging Insurtech advancements can enable personalised, data-driven solutions, enabling the industry to move beyond the one-size-fits-all approach and meet diverse customer needs effectively.
Equally important is customer education—simplifying policy terms, demystifying insurance processes, and promoting financial and tech literacy will empower individuals to view insurance as a tool for protection rather than an expense.
By fostering collaboration between insurers, lenders, and technology providers, and prioritising seamless, customer-centric solutions, the vision of “Insurance for All by 2047” can pave the way for a financially resilient and inclusive nation.
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