Companies Innovate To Aid Customer Long-term Financial Goals: Bajaj Allianz Life's Dheeraj Sehgal

What are some significant market trends currently affecting the life insurance industry, particularly in terms of distribution?
The Indian life insurance industry has experienced strong growth so far at the back of offering simple and effective products that help customers meet their financial requirements of either creating wealth or offering financial security to their family. The year saw a slew of innovations in the product space as well as in the service side to enable customers to achieve their financial goals in a simple and delightful manner. I believe we will continue to see more customisation and innovation in these aspects, keeping the customer at the centre of all developments. 

For distribution, we have multiple engines firing that will help the industry reach customers across the board. The Open Architecture regulation now enables banks to partner with nine life insurers instead of just three, to provide their customers with value-packedlife insurance products to meet their needs. Furthermore, IRDAI, our regulator is developing several initiatives, like Bima Vahak, Bima Sugam, Bima Vistaar etc., to reach our vision of Insurance for all by 2047. These new initiatives will enable the industry further to enhance our distribution footprint and reach customers across the country.  

Looking ahead, what are your expectations for 2024, and what trends do you anticipate will continue to influence the insurance industry?
Looking back at the calendar year 2023, the industry recorded robust growth and we foresee this positive momentum extending into the New Year as well. A notable driver of this success is the increased awareness among consumers about the importance of life insurance. Thanks to the regulator as well since a plethora of initiatives have been driven to increase insurance awareness and penetration.

Insurers’ commitment to delivering on their promises to customers will continue to drive their outreach to diverse customer segments. Companies will continue working on simple and innovative products focussed on helping customers meet their long-term financial goals. The product bouquet will keep diversifying with the evolving needs of the customers.  

On the distribution front, the implementation of open architecture will help in establishing more partnerships with various financial institutions, enhancing accessibility for a wider audience. Additionally, technology will remain a key factor, contributing to improved efficiencies and stakeholder satisfaction. Whether it's elevating customer experience or streamlining internal processes, technology will play a pivotal role in shaping the landscape of life insurance in the upcoming year as well. 

How does one select the right life insurance coverage amount?
Before we head to understanding the right life insurance coverage, one must have a clarity about one’s financial goals, as well as to know whether these goals are long term or short term. Basis this understanding, one can start putting together their financial portfolio. Term plans from life insurance companies are the most essential aspect of a financial portfolio as it helps individuals safeguard their family’s financial future. 

Selecting the coverage amount requires careful consideration of various factors – as you will be planning this for the long-term. Start by evaluating your current income, current and expected liabilities, expenses, as well as the tenure for which you need to cover these expenses and liabilities. These will enable customers understand the amount of coverage they may need. There are several financial experts as well as simple calculators available for customers to arrive at the amount themselves. I will encourage customers to refer to them before purchasing any term plan. 

How has Bajaj Allianz Life Insurance embraced technology to enhance customer services and operational efficiency?
Technology has been our differentiator as well as the robust backbone of our transformation journey. We continue to invest in tech enhancements that enable us to be agile and innovative to meet the needs of all our stakeholders. 

We continue to make optimal use of technology to ensure our customers have easy and hassle-free experience at every touchpoint, right from pre-sales, to servicing the policy during the long tenure to claims. 

For instance, our WhatsApp Chatbot is now one of the most popular platforms for stakeholder engagement with the Company. We have platforms for customers, agents, partners and employees to seek information from the Company. Over ~1 million active customers are using Whatsapp to engage with us. Other initiatives like Humanoids, QR code-enabled services and automated claims processes have been integrated into core operations. These technologies play a pivotal role in simplifying and enhancing our architecture for customer service.

To remain at the forefront of technological evolution, we are also actively tracking the advancements in Artificial Intelligence (AI) and Machine Learning (ML). The integration of AI and ML into various aspects of our operations, such as fraud prevention and risk assessment, has proven to be useful. This not only ensures continuous improvement in our business processes but also contributes to our commitment to providing secure engagements for our customers.

How do insurance companies inform customers and stakeholders about new regulatory changes and what initiatives have been taken to enhance insurance awareness?
regulatory changes are implemented with customers’ benefits at the centre of all considerations. While customers today have access to information through various online and offline platforms, insurers try and simplify these regulations through articles, media stories, etc. that is easily comprehensible. There are numerous platforms including insurers’ websites that have relevant information pertaining to such changes. Insurers can also be reached out on email, social media, consumer query columns in newspapers through which customer can get a detailed and simplified response. Insurers also regularly drive on-the-ground activities, publish educational articles and campaigns on social media platforms. 

Buying life insurance early in life has its benefits. What advice would you give to first-time life insurance buyers?
I will emphasise the thumb rule of buying life insurance – the earlier, the better. 

It results in lower premiums since they are calculated based on factors like age and health risks, making it more affordable for the policyholder. Additionally, obtaining life insurance early contributes to financial security by allowing for more savings over the long term, providing a safety net for the family in the event of the policyholder's untimely demise. Another benefit is longer coverage, as initiating the insurance plan sooner enables the policyholder to secure extended coverage at an affordable premium for a longer period, ensuring the family’s protection. There’s also the advantage of compounding when investing in a life insurance plan early, as the longer duration for investment enhances the potential for the maturity amount to grow into a substantial fund as your investments compound.

For first-time buyers, this decision signifies an important step towards ensuring a secure financial future. So, I would suggest before purchasing any plan, it is important that you evaluate your life goals, understand you risk appetite, do your research and then choose the right plan tailored to meet your requirements.