Thriving equity markets are sparking interest in ULIPs, use of AI, Gen AI improving operational efficiency, says Rajesh Krishnan, Bajaj Allianz Life

"Despite market volatility, there is a growing awareness that equity markets are thriving, sparking interest in market-linked instruments such as ULIPs," says Rajesh Krishnan, Chief Operations & Customer Experience Officer, Bajaj Allianz Life, in an exclusive interaction with Zee Business' Sirali Gupta.

With over 25 years of cross-functional and leadership experience in the Banking and Insurance industry, Krishnan is a seasoned BFSI specialist. Customer centricity is a key part of Krishnan’s role at Bajaj Allianz Life Insurance, where he drives the brand’s customer obsession.

Edited excerpts:

ULIPs in the product mix of life insurers have seen a surge, have you seen this trend in your company?

Despite market volatility, there is a growing awareness that equity markets are thriving, sparking interest in market-linked instruments such as ULIPs. Mirroring industry trends, we have witnessed a rising inclination towards investment-linked insurance products.

Over the past year, at Bajaj Allianz Life, ULIPs have experienced robust growth, comprising 39 per cent of our product mix in terms of individual rate of new business (IRNB) contribution, for FY2024, a notable increase from 31 per cent in FY2023.

This surge isn't fleeting; it represents a sustained momentum toward market participation and an acknowledgment of ULIPs' potential benefits in achieving long-term financial objectives.

Why are insurance companies turning towards technology? How will it be beneficial to the customers?

Customers are now accustomed to accessing products and services at the click of a button, and their expectations from financial services are no different. Given such rapidly changing market dynamics and evolving customer expectations, the insurance industry has also focused on tech-based innovation to ensure enhanced customer experience throughout their life insurance journey.

Using technology at both the front end and the back end has helped insurance companies in providing more customised customer-centric solutions, risk, and fraud management, and managing claims.

How is Bajaj Allianz Life using AI, Gen AI, and other technology to enhance customer experience?

At Bajaj Allianz Life Insurance, we are actively utilising Artificial Intelligence (AI) and Machine Learning (ML) to enhance our services and solidify our position as the preferred life insurer. These technologies have been crucial in improving our fraud prevention, underwriting, and risk assessment processes, significantly boosting the quality of our operations.

We are making significant technological strides by transitioning our policy administration systems to a modern, microservices-based architecture, setting a benchmark in South Asia and globally. We introduced the first-of-its-kind WhatsApp Conversational Chatbot and QR Code Enabled Services, providing quick and secure access to essential services and enhancing customer satisfaction. Additionally, we have largely automated the claims process and incorporated various payment methods into our digital platforms, accelerating transaction speeds and policy issuances.

Further integrating GenAI, we have introduced features like Chat Summarisation and Conversation Tone Changer for our agents to optimise their customer interactions, making communications more effective and customer-centric. These tools have improved operational efficiency and enhanced the overall customer experience and agent productivity, demonstrating our commitment to innovation and Customer First philosophy.

How important do you think is the role of data and analytics in the insurance industry?

The insurance industry is well placed to leverage the benefits of this given the vast amounts of data they accumulate. When used effectively, it can provide profound insights into customers' life goals and investment decisions. The rise of big data technologies and intelligent systems also marks a transformative shift in risk management approaches.

Crucially, this data is utilised within strict privacy guidelines, offering a treasure trove of insights that insurers use to enhance customer-centric solutions, risk and fraud management, underwriting, claims handling, and post-sales service. This strategic use of data not only refines the customer experience but also enhances the precision and efficiency of insurance operations.

What products do you have in your product suite? Any new product launches in the pipeline?

At Bajaj Allianz Life, we have a diverse product portfolio with simple, and innovative products. The mix strikes a balance between ULIPs, guaranteed options, and traditional plans, each crafted to meet diverse financial goals efficiently.

Over the past two financial years, we've introduced some distinctive and industry-first products across categories, such as the Bajaj Allianz Life ACE, a dynamic life insurance plan that allows customers to choose the way they get their returns, Bajaj Allianz Life Diabetic Term Plan, India’s first term product designed exclusively for type 2 diabetics & pre-diabetics, Bajaj Allianz Life Guaranteed Pension Goal II which assures lifestyle goals by giving guaranteed income throughout life as per customers’ choice and need, to name a few.

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