CXOToday She participated in an exclusive interview with Sriram Naganathan, President and CTO, HDFC ERGO General Insurance
- How is the integration of insurance and technology reshaping customer experience and driving financial inclusion in India?
The insurance industry, traditionally based on people-to-people interactions, has shifted to a hybrid ‘phygital’ model with digitalization, closely aligned with IRDAI’s initiatives on awareness, affordability and accessibility. Standard insurance processes such as policy issuance, claims settlement and pre-medical examinations are undergoing digital integration, transforming customer experiences and streamlining processes. This not only enhances user satisfaction but also enhances financial inclusion by leveraging technology to reach out to remote areas, contributing to an inclusive India of insurance and contributing to IRDAI’s vision of ‘Insurance for All by 2047’.
Technologies such as machine learning, artificial intelligence, automation, and data analytics are digitizing insurance operations. At HDFC ERGO, we have introduced multilingual support on digital platforms – (a) Self-help chatbot “DIA”, available in English and Hindi (b) AI-powered WhatsApp bot “MyRA” which provides assistance to customers in 12 languages. Likewise, we have also developed the insurance-led, AI-powered “Hana” ecosystem app, which helps users get solutions to their health and mobility-related queries.
Administrative and regulatory bodies are also actively aligning with the digital revolution to make insurance products available at the national level. Initiatives like ABHA and Bima Sugam are leveraging technology to scale insurance and automate processes across stakeholders, including insurers, policyholders, brokers, etc.
Additional collaboration with the IIB (Insurance Information Bureau), a data warehouse and analytics body, can help address issues such as under-penetration, NCB leaks, and fraudulent claims.
Apart from this, the rise of insurtech is playing a transformative role, facilitating seamless connectivity between insurers and today’s digitally savvy customers. By bringing expertise in areas such as artificial intelligence, blockchain for data analysis, etc.; Technology companies are reshaping the insurance landscape by offering cutting-edge solutions, enhancing customer engagement and fostering a more personalized and efficient experience.
- Tell us about ways to leverage big data and advanced analytics to enhance risk assessment and pricing strategies
The use of big data and advanced analytics in insurance involves leveraging comprehensive data sets and cutting-edge analytical tools to enhance risk assessment and pricing strategies. By analyzing historical and real-time data, insurers can discern patterns, trends and correlations, leading to a more accurate risk assessment. This in turn allows for the development of dynamic and personalized pricing strategies based on individual risk profiles.
By applying predictive modeling and machine learning algorithms, insurers can make data-driven decisions, leading to increased underwriting accuracy and overall risk management effectiveness. This approach enables insurers to revolutionize risk assessment and pricing strategies by collecting and examining huge sets of data, including historical claims, customer behaviors, and external variables such as weather patterns. The result is valuable insights, allowing highly personalized pricing to be provided to customers.
Furthermore, predictive modeling and data analytics also play a crucial role in fraud detection, claims prediction and loss mitigation. While many existing analytical models rely on structured data sets, there is huge potential to extend and integrate unstructured data, enhancing the outputs of these models. The evolution of cloud technology, with its seemingly limitless computing power and advanced data platforms, represents a significant opportunity to enhance business value through improved pricing models and proactive risk management.
As a ‘Customer First’ organisation, we at HDFC ERGO leverage advanced technologies such as Artificial Intelligence, Machine Learning and Data Mining techniques to deliver a seamless experience to our customers.
- How can insurance companies achieve a balance between promoting innovation and maintaining critical elements of trust and reliability in their services?
In order to achieve a balance between promoting innovation and maintaining confidence in insurance services, transparency is crucial. Clear communication about how customer data is collected, used and protected builds trust, and implementing strong cybersecurity measures reinforces a commitment to security and reliability. Many insurance companies are embracing technology to offer do-it-yourself models to facilitate a seamless experience while fostering innovation. In addition, the establishment of an anti-fraud unit by insurance companies shows a proactive attitude in protecting against risks and maintaining a sense of security among policyholders.
At the same time, compliance with the Digital Personal Data Protection Act ensures strong data protection measures and ensures security for customers. Implementing strict development security and operational practices enhances the security of sensitive information, which enhances the overall reliability of services.
In short, by combining transparency, agility, and innovative DIY models, insurers can effectively navigate while maintaining unwavering trust and reliability in the dynamic digital landscape.
- How is HDFC ERGO adapting to emerging risks and evolving customer needs in today’s digitally driven world?
As a digital-first organisation, we at HDFC ERGO are adapting to emerging risks and evolving customer needs in the digital world by embracing digital technologies and data analytics. Our shift towards a comprehensive digital approach, including chatbots and mobile apps, demonstrates our commitment to innovation. Strengthening our strategic partnerships with institutions like IIT Bombay and collaborating with technology leaders like Google Cloud and Meta reflect our proactive approach to staying ahead in the digital landscape.
By leveraging data analytics, we gain insights into customer behaviors and emerging risks, allowing for rapid adjustments to our product offerings and risk management strategies. Our proactive approach enables us to remain responsive to the dynamic insurance industry landscape, meet evolving customer expectations and effectively manage emerging risks in the digital age.