Every digital tablet-equipped advisor becomes a virtual branch for us: Sandeep Bakhshi

Interview with Managing Director and CEO, ICICI Prudential Life Insurance

ICICI Prudential Life Insurance has taken a lead in the use of technology to get more business. Sandeep Bakhshi, managing director and chief executive officer, ICICI Prudential Life Insurance, talks about these to M Saraswathy. Edited excerpts:

It is four months since the new product guidelines were implemented. How have the changes impacted customers?

The new regulations have made products simpler and easier to understand for customers. The charges have been rationalised, surrender values have been increased and the incentive structure of advisors has been transformed. Additionally, funds of lapsed policies have to necessarily be transferred to the discontinuance fund, which guarantees the policyholder an annual return of four per cent. It is in the interest of the life insurance company and the advisors to ensure the policyholder continues with the product till the end of the term.

Won’t the guidelines impact the sector’s profitability?

We exist because of customers and we must appreciate that what is good for the customer is good for the sector. The full impact of the new regulations will be visible over a period of time. These will provide a strong foundation for the sector's profitable growth.

You took some technology-based initiative at the distributor’s and the customer’s end. How will that quicken sales process?

Our digital tablet solution facilitates scanning and uploading of the requisite documents. It provides an instant KYC (know-your-customer) validation, based on their Aadhaar card number or Permanent Account Number or ICICI Bank account number, if they have one. The customer can either make an online payment or the Mobile Point of Sale dongle plugged into the tablet can be used to make payments via credit or debit cards. This has virtually ironed out all the challenges customers had faced. A sales process which earlier took several days and involved reams of paper can now be completed in a matter of minutes, virtually paper-free and in the presence of the customer.

Has this reduced the need for large branch operations?

We believe every advisor equipped with a tablet can be called a virtual branch. The tablet equips them to take in-service requests from customers. Our digitisation initiatives have enabled us to provide convenience to claimants by enabling them to raise a claim online, scan and upload all relevant documents and the claim proceeds are directly credited to the beneficiary’s account.

The company was one of the first ones to introduce tablets for agents. Has it improved productivity?

Agents have been one of the largest contributors in building up the life insurance business. We believe the potential of the agency channel is infinite. Products offering a superior proposition, coupled with technology, put the agents in a position to recommend suitable products. Traditionally, this channel has had a high degree of familiarity with the customer and is, therefore, in a position to provide advice on optimum allocation of funds towards life insurance. The tablets provided to agents have enabled them to improve productivity by reaching out to a larger segment of the population.

Since the insurance regulator has come up with draft norms for micro insurance, have you begun tying up with Common Services Centres  for selling products in rural areas?

Our agents/advisors, equipped with tablets, are able to reach out to rural and other geographies, challenging in the past. The tablet application facilitates offline capture of data, which can be uploaded on the system at a later point.

Micro insurance is targeted at economically weaker sections. This segment might not have a steady flow of income, thereby impacting their premium payment capabilities. The draft micro insurance norms say all the premiums will be paid back to the policyholder. We are evaluating the possibilities of tying up with CSCs and having agents targeting the micro insurance segment.