1. Digitalisation of the Sales and Servicing
26th India Fellowship Seminar (IFS)
Institute of Actuaries of India
Digitalisation of the Sales and Servicing
Process of an Insurance Company
– a challenge and opportunity
Prepared by:
Harvinder Kaur
Siddharth Kumar Goel
Devesh Khatri
Reviewed by:
Malvika Nath

2. Agenda Introduction Digital Sales: Opportunities
Digital Sales: Challenges and Possible solutions
Digital Servicing: Opportunities
Digital Servicing: Challenges and Possible Solutions
Standards/Professional and Ethical Requirements
Way Forward
QnA

3. Introduction www.actuariesindia.org Digitalisation – A need for today
What we intend to cover? – Sales and servicing
Current practice and Limitations in the Indian Insurance industry
Customer need analysis and advice process
Informational Asymmetry (Policyholders and Sales Persons)
Processing time, costs and resolution
Some Data Facts
Percentage of internet users in each age group who use social networking sites, over time
Insurance online experience lags behind
15.2
4.0
11.8
11.1
10.0
8.9
8.5
8.0
5.8
~7.3
5.0
4.1
3.8
3.5
Personal Banking
Online Merchants
Media Retail Electronics
Apparel Retail
Airlines
Retail
Investments
Hotels
Supermarkets
Electricity, Gas, Water
Automobiles
Government Services
Health Care Providers
Insurance
Real Estate
Telco & Cable
Feb Apr Feb May-13
Source: Pew Research Internet Project, BCG Analysis, Morgan Stanley Research
Source: BCG digital satisfaction survey March 2013, Morgan Stanley Research

4. Digital Sales: Opportunities
Digitally assisted sales on tablets – Meeting today’s customer’s expectations
Rapid issuance of policy using tele-underwriting – Increase efficiency of sales process
Online sales of products (Accept/Reject) – Fast processing of the product and reduce selling time
E-proposal forms and documents submission - Reduced cost of printing and resources involved in manual processing
Digital application process – Increase transparency as status of the proposal completely trackable
Easier performance appraisal of the process and bottlenecks through real time information
Reduced Fraud and mis-selling
More focused marketing strategies and better persistency
Insurance Sales practice
Opportunities for an Insurance Company
Agents generate lead
Use of social media like “Facebook”
Reach data quality and information of each customers
Data analytics
Customer’s needs analysis by agent
Use of mobile apps and tabs
Customized solution along with transparent information disclosure
Proposal form filled and submitted into the office
E-proposal form
Electronic submission along with the images of other relevant documents
Underwriting and interaction with underwriter
Auto-underwriting leading to STP (Straight Through Processing)
Tracking of status through internet
Issuance of physical copy of policy bond
Dematerialization of policy information (policy bond etc)

5. Digital Sales: Opportunities (Continued)
Advantages of digitalisation of the process
Reduced TAT (possibility of instant issuance)
Reduce cost of printing
Reduce need of resources involved in manual processing
Hassle free buying process for customers
Reduce mis-selling
Better persistency
Increase effectiveness and efficiency of sales process

6. Digital Sales: Challenges and Possible Solutions
Digitally assisted sales on tablets – Meeting today’s customer’s expectations
Rapid issuance of policy using tele-underwriting – Increase efficiency of sales process
Online sales of products (Accept/Reject) – Fast processing of the product and reduce selling time
E-proposal forms and documents submission - Reduced cost of printing and resources involved in manual processing
Digital application process – Increase transparency as status of the proposal completely trackable
Easier performance appraisal of the process and bottlenecks through real time information
Digital Sales: Challenges
Possible Solutions
Adoption of new technology by Distributors
Early Involvement with distributors
Smooth shift towards digital sales
Updating IT systems – a painful process
Invest to hire IT experts
Arrange training to the existing staff members
High initial as well as upgradation cost of technology and digital sales channels development
Some industry level tools as all have similar requirements
Develop in-house IT and digital distribution management team
Detailed cost and benefit analysis

7. Digital Sales: Challenges and Possible Solutions (Continued)
Digitally assisted sales on tablets – Meeting today’s customer’s expectations
Rapid issuance of policy using tele-underwriting – Increase efficiency of sales process
Online sales of products (Accept/Reject) – Fast processing of the product and reduce selling time
E-proposal forms and documents submission - Reduced cost of printing and resources involved in manual processing
Digital application process – Increase transparency as status of the proposal completely trackable
Easier performance appraisal of the process and bottlenecks through real time information
Reduced Fraud and mis-selling
Digital Sales: Challenges
Possible Solutions
Lack of infrastructure or less educated customer base in rural areas
Existing manual sales for rural areas
Offline completion of the process and submission after getting the internet connection
Non- standardisation of Product/ Proposal forms etc. leading customization of applications on regular basis
Understand changing customer’s needs continuously
Work in harmony with sales, underwriting and IT teams
Keep an eye on competitors’ action

8. Digital Servicing: Opportunities
Digitally assisted sales on tablets – Meeting today’s customer’s expectations
Rapid issuance of policy using tele-underwriting – Increase efficiency of sales process
Online sales of products (Accept/Reject) – Fast processing of the product and reduce selling time
E-proposal forms and documents submission - Reduced cost of printing and resources involved in manual processing
Digital application process – Increase transparency as status of the proposal completely trackable
Easier performance appraisal of the process and bottlenecks through real time information
Reduced Fraud and mis-selling
More focused marketing strategies and better persistency
Insurance Servicing Areas
Examples - Digital Servicing
Opportunities for an Insurance Company
Premium payments
Mobile apps to provide services
Easy premium payments
Premium reminders results in improve persistency
Alterations and other after-sale services
Digitally assisted customer-support services;
Online messenger to solve customer’s grievances etc
Saves call centre/ contact centre costs
Save training and recruitment cost
Relatively faster solution to customer grievances
Increase transparency
Improve customer’s satisfaction and hence persistency
High sales
Continuous engagement with customers
Digital feedback mechanism (E-Surveys to customers)
Help in understanding customer’s needs
Encouraging development of innovative and new product designs
Better competitive position in the market

9. Digital Servicing: Opportunities (Continued)
Digitally assisted sales on tablets – Meeting today’s customer’s expectations
Rapid issuance of policy using tele-underwriting – Increase efficiency of sales process
Online sales of products (Accept/Reject) – Fast processing of the product and reduce selling time
E-proposal forms and documents submission - Reduced cost of printing and resources involved in manual processing
Digital application process – Increase transparency as status of the proposal completely trackable
Easier performance appraisal of the process and bottlenecks through real time information
Reduced Fraud and mis-selling
More focused marketing strategies and better persistency
Insurance Servicing Areas
Examples - Digital Servicing
Opportunities for an Insurance Company
Claims management
Digital and integrated IT systems for claims detection, reporting and settlement
Reduce fraudulent claims
Reduce cost of claims management
Relatively quicker settlement of claims
Increase efficiency and effectiveness of claims processing
Policy admin system
Automated and well designed policy admin system
Helps to automatically update the policy information
Easy accessibility to the information in future
Improve Turn Around Time to answer customer’s queries
Well maintained Policy level data
Improve efficiency and transparency

10. Digital Servicing: Challenges and Possible Solutions
Digitally assisted sales on tablets – Meeting today’s customer’s expectations
Rapid issuance of policy using tele-underwriting – Increase efficiency of sales process
Online sales of products (Accept/Reject) – Fast processing of the product and reduce selling time
E-proposal forms and documents submission - Reduced cost of printing and resources involved in manual processing
Digital application process – Increase transparency as status of the proposal completely trackable
Easier performance appraisal of the process and bottlenecks through real time information
Reduced Fraud and mis-selling
Digital Servicing: Challenges
Possible Solutions
Digitisation of servicing as a perceived threat
Early Involvement with IT experts
Detailed analysis of cost and benefit and impact on business
Arrange trainings and seminars
Piecemeal approach - as it takes time to move from non-digitalised to digitalised environment
Do detailed research before implementation
Ensure smooth and step-by-step transition
Risks due to developing regulations in the Indian insurance industry
Ensure the sales and other related team are updated
Keep continuous eye on regulation
Ensure timely implementation of changes in regulation
Do research on likely impact of changes

11. Digital Servicing: Challenges and Possible Solutions (Continued)
Challenges of a heterogeneous IT landscape
Build a central repository for all customer data
Develop a model for improved and increased consumer interaction across multiple channels
Build strong data analytics capacity
Ensure flexibility and speed in both front- and back-office systems
Cyber risk and data security risk
Invest in data protection software e.g. high quality anti-virus
Build a team with software skills experts o support data security
Make strict compliance rules within organisation
Arrange internal trainings on data security and its importance
Organisation specific challenges:
Large companies - Difficulties due to lack of flexibility
Small companies - Difficulties due to disproportionate investment
Large companies – use their surplus funds
Smaller companies – use their ‘agility’
Digitally assisted sales on tablets – Meeting today’s customer’s expectations
Rapid issuance of policy using tele-underwriting – Increase efficiency of sales process
Online sales of products (Accept/Reject) – Fast processing of the product and reduce selling time
E-proposal forms and documents submission - Reduced cost of printing and resources involved in manual processing
Digital application process – Increase transparency as status of the proposal completely trackable
Easier performance appraisal of the process and bottlenecks through real time information
Reduced Fraud and mis-selling
More focused marketing strategies and better persistency

12. Standards/Professional and Ethical Requirements
Area/Regulations
Points of Interest
Data Protection Requirements
OECD, EU and APEC
The Eight Principles
Is any Advice being given?
Material Impact from Consumer’s perspective
Requirement assessment
Detailed log of circumstances
IRDAI (Expenses of Management of Insurers transacting life insurance)
Limits on total expenditure classified as expenses of management.
Well-documented policy for expense allocation
Auditing requirements
IRDAI (Insurance Services by Common Service Centres) Regulations
What is CSC?
Requirements related to CSC-SPV and RAP
IRDAI (Web Aggregators) Regulations
Requirements related to registration and operations
Practice conducts
Maintenance of data and data privacy
Digitally assisted sales on tablets – Meeting today’s customer’s expectations
Rapid issuance of policy using tele-underwriting – Increase efficiency of sales process
Online sales of products (Accept/Reject) – Fast processing of the product and reduce selling time
E-proposal forms and documents submission - Reduced cost of printing and resources involved in manual processing
Digital application process – Increase transparency as status of the proposal completely trackable
Easier performance appraisal of the process and bottlenecks through real time information
Reduced Fraud and mis-selling

13. Standards/Professional and Ethical Requirements (Continued)
Digitally assisted sales on tablets – Meeting today’s customer’s expectations
Rapid issuance of policy using tele-underwriting – Increase efficiency of sales process
Online sales of products (Accept/Reject) – Fast processing of the product and reduce selling time
E-proposal forms and documents submission - Reduced cost of printing and resources involved in manual processing
Digital application process – Increase transparency as status of the proposal completely trackable
Easier performance appraisal of the process and bottlenecks through real time information
Reduced Fraud and mis-selling
Area/Regulations
Points of Interest
IRDAI (Insurance e-commerce) Regulations
Requirements related to registration and operations
Safety of data
Bridging gap between traditional methods and the new technology
IRDAI (Revised Guidelines on Insurance Repositories and electronic issuance of Insurance Policies)
Insurance Repository
Insurance Transaction Exchange (iTrex)

14. Way Forward www.actuariesindia.org Data Security Robo Advisors
Machine learning
Wearable Technology

15. Any Questions?
QnA
Quiz Time