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An insurtech within a bank

An insurtech within a bank

Banks have been the most powerful distribution channel for financial products in the world. They provide an ideal platform to reach customers. Bancassurance will play a very critical role in the growth of the insurance business in the post-covid era. The scale-up will need leveraging digital solutions that provide convenience and superior customer experience. Dilip Vidyarthy, National Business Manager, Bancassurance, AU Small Finance Bank, underlines: “Banks can impart greater technical sophistication and help equip insurance partners with enhanced digital customer engagement strategies. Bancassurers can offer a ‘one client view’, ie, a complete picture of each customer’s unique financial needs by drawing on banking data spanning multiple product lines and then customizing product offerings accordingly.”

Digital Transformation

Insurers, hindered by legacy systems, have traditionally lagged their banking counterparts in using technology to speed up and simplify the customer experience. The outlook of the insurance regulator in India has been refreshing and very welcoming. Dilip explains: “Digital adoption provides cost efficiency and speedy solutions to the customers. With the advent of new technology and business models, bancassurance will witness the digital transformation and provide much-needed transparency to the customer.”


AU Bank has launched a ‘compare-and-buy’ digital journey for customers. The bank’s partners and distribution teams can also use a similar platform called AU BIMA – a distribution growth engine to solicit insurance to their customers and issue insurance policies based on their needs. Dilip elaborates: “With the AU0101 mobile application, customers can compare and buy insurance policies without any external help. Further, they can recommend their family members and loved ones too. The platform AU BIMA is a huge disruption in the way the Bancassurance business is viewed globally. Thereby creating a niche to sell a product that needs utmost simplification, trust, transparency, and compliance.”

Adopt Digital To Scale Up

During the pandemic, automation and digitization helped AU Bank to thrive against the challenges and built the belief of Badlaav in insurance more vividly. Dilip argues: “Digital adoption is the only way to scale up businesses without incurring huge costs. However, this is not an easy task given the nature of humans – resisting the slightest change in their routines or working styles.”

Visible Benefits

Digital transformation has helped AU Bank achieve a reduction of up to 25% in operational challenges around policy issuance, cancellation, refund, etc. Internal fund transfer or UPI contributes to 48% of digital payments. Cheque & cash-based payments have migrated to internet banking. Adherence to compliance norms has improved.

Customer Experience

There has been augmentation in the advisory role of branch banking teams using digital platforms for customer discussions. There has been customization of insurance solutions and also sachet/byte sized insurance products to the customer, which helps them to buy insurance on the go and use the product as per their needs. Elevated customer experience has been observed as people buy the product anywhere and anytime. Dilip points out: “Customer engagement has risen 42% through our platform-integrated marketing and communication activities. We have acquired an ability to support omnichannel access to our partners and customers. Consolidated data streams are created for a unified view of customers and their buying behavior, thereby enabling analytics.”

Analytics For Industry

Cross-functional industries are helping the insurance sector for redefining the customer journey and simplifying the onboarding journey. Dilip believes: “The industry is well poised to use data analytics for customer profiling, fraud analytics, and risk underwriting to be able to serve the bank with profitable product solutions. Within the open architecture, banks are moving towards customer persona-based product solutions rather than only product-oriented sales.”

Humanoids: Predict Patterns

AU Bank has taken giant strides towards hyper-interactive product advisory, AI-driven concierge to help customers 24×7, video/speech-based claim intimation, cloud telephony for sales lead management, and analytics-driven customer engagement for cross-selling, upselling, and retention accomplished by virtual manpower – humanoids. Dilip indicates: “Leveraging data learning and human behavior by the current trends, it will be simpler and faster to predict buying patterns in the future when the data volumes will be very large. Also, we will be able to scale up business operations much more effectively and efficiently.”

Align with AI, ML, NLP

AU SFB has set a robust, compliant, and value-delivering architecture of an insurtech within the bank. There has been an increase in digital adoption from 1% to 37% in terms of the usage of digital platforms for conducting business. Dilip reveals: “Our next steps are to align towards the evolution of technologies and processes like Web3.0, Artificial Intelligence, Machine Learning, Natural Language Processing, and Blockchain. We intend to take digital adoption number to 100% by the end of this year.”

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