New Delhi: The insurance industry is undergoing a profound shift propelled by the wave of digital transformation. Technological advancements are reshaping every facet, from the way insurance products are assessed and mitigated for risk to the overall efficiency and effectiveness of insurance processes. This transformative journey is not only driven by innovative technologies but also responds to evolving policies and regulations within the industry.

As insurers embrace digital tools and strategies, they navigate a landscape that demands adaptability and a strategic reevaluation of traditional practices to stay ahead in an ever-changing environment. In this regard Shivani Babbar, ObserveNow interacted with Dipu KV, Senior President, Bajaj Allianz General Insurance.

Here are a few excerpts from the interview:

Bajaj Allianz emphasizes digital transformation. How do you see technology impacting the insurance industry, and how can you contribute to this transformation in your role?

Bajaj Allianz’s focus on digital transformation aligns perfectly with the profound impact technology is having on the insurance industry. Global InsurTech market size: expected to reach $22.7 billion by 2025, growing at a CAGR of 22.2% (2020-2025). (Source: Grand View Research) The key areas influenced by technology include personalization and automation, data-driven underwriting, improved customer experience, risk prevention and mitigation, and the introduction of new products and services. In contributing to this technological shift, my emphasis will be on fostering innovation ideas that align with industry trends. I plan to make informed decisions based on thorough data analysis and insights, ensuring that the company stays ahead in the competitive landscape. Additionally, I aim to enhance shareholder interaction by leveraging technology to provide transparent and real-time updates, fostering a stronger and more collaborative relationship. By embracing these principles, I am committed to contributing to Bajaj Allianz’s digital transformation journey effectively

How do you approach risk assessment and mitigation in the context of insurance products?

Bajaj Allianz’s commitment to minimizing frauds and risks is exemplified through its comprehensive framework. The dedicated team collaborates closely with departments such as Claims, HR, Underwriting, and Risk Management to identify and mitigate risks at different stages of operations. Employing a robust strategy, the company utilizes a combination of data analytics, field verifications, and other advanced techniques to investigate suspicious cases thoroughly. Telematics-based insurance, which uses driving data to personalize premiums, is expected to grow at a CAGR of 27.3% between 2021 and 2026. A strong customer-centric approach and unwavering adherence to regulatory compliances further underscore Bajaj Allianz’s commitment to integrity. The incorporation of powerful analytics capabilities enables the prediction of unforeseen risks and exposures, providing a proactive stance in risk management. Additionally, the use of customized tools for enterprise-wide risk and control assessment ensures a holistic and effective approach to risk mitigation within the organization.

 How would you contribute to improving the efficiency and effectiveness of insurance processes at Bajaj Allianz? 

From the perspective of Head of Ops and CX, our strategic approach to customer onboarding and policy management reflects our commitment to seamless experiences. Personalized chatbot assistants enhance the onboarding process, offering customers a tailored and user-friendly interface. Automated document verification streamlines policy management, ensuring accuracy and efficiency. The introduction of interactive quote generation further empowers customers to make informed decisions. In the realm of claims processing and risk management, our focus is on leveraging cutting-edge technology. Claims automation and pre-filling expedite processes, while AI-powered fraud detection reinforces our commitment to integrity. Proactive risk mitigation strategies and the ability to dynamically adjust premiums showcase our dedication to staying ahead of emerging risks and providing flexible solutions.

80% of customers expect a digital self-service option for managing their insurance policies. Content and communication initiatives underscore our commitment to customer engagement. Personalized policy summaries offer clarity and transparency, enhancing the overall customer experience. Risk education and awareness campaigns demonstrate our commitment to customer empowerment. Multilingual communication support ensures inclusivity, while proactive claim updates keep our customers well-informed throughout their insurance journey. Together, these initiatives align with Bajaj Allianz’s mission to deliver innovative, customer-centric solutions in the insurance industry.

Given the increasing integration of technology in the BFSI sector, how do you adapt to and leverage technological advancements in your work?

The principle of technology adoption for me around a use case-centric approach rather than being driven solely by technology. 54% of insurers are planning to invest in parametric insurance, a data-driven approach that pays out based on pre-defined triggers. This strategic mindset emphasizes aligning technological solutions with specific practical scenarios and needs. Instead of adopting technology for its own sake, we prioritize its implementation based on its tangible and impactful applications. This use case-based strategy ensures that our technological investments directly contribute to addressing real challenges, enhancing operational efficiency, and delivering meaningful value across various facets of our business operations. This approach underscores our commitment to purposeful and targeted technology adoption for optimal results.

How do you adapt to changes in policies and regulations within the insurance industry?

•            Our approach at Bajaj Allianz centers on staying informed, understanding the impact, and supporting compliance when it comes to critical decision-making processes. Staying informed involves continuous monitoring of industry trends, technological advancements, and regulatory changes. Understanding the impact is a key tenet of our decision-making framework. We meticulously assess how various factors, be it market trends or internal changes, may influence our operations and stakeholders. This holistic understanding enables us to anticipate challenges, identify opportunities, and navigate uncertainties effectively.

•            Supporting compliance is ingrained in our values. We are committed to upholding regulatory standards and industry best practices. By aligning our strategies and operations with compliance requirements, we not only mitigate risks but also build trust with our customers and partners. This threefold approach—staying informed, understanding impact, and supporting compliance—forms the foundation of our decision-making process at Bajaj Allianz.

To hear more from Dipu KV, Join us at the ObserveNow BFSI Confluence

Registration link: https://observenowevents.in/bfsiconfluence/