How leap-frogging technology can help reshape the insurance industry in India – S. V. Ramanan, CEO-CAMSRep

10-second takeaway: Technology is evolving rapidly and many insurance organizations are challenged to keep up the pace.

The Associated Chambers of Commerce & Industry of India (ASSOCHAM) held the 10th edition of their Global Insurance Summit on the 22nd of September, 2017. This event was held at the Hotel Taj Land Ends, Mumbai, and hosted key stakeholders and thought leaders in the insurance industry. The discussions held at this event aimed to highlight the impact of technology on the insurance industry.

S. V. Ramanan, CEO-CAMSRep was part of a panel discussion at this event where they discussed “The impact of technology on the life cycle of products, lead generation, acquisition, KYC and service settlement”. This discussion was also attended by R. M. Vishakha, Samrat Das, Trevor Bull and Srinivasa D (Moderator). This panel discussion focused on how technology has disrupted the insurance industry impacting their product lifespans, lead generations and service standards. Technology is growing by leaps and bounds, and industries such as insurance need to be prepared to adapt to these developments. Innovations such as these would require the vendors to modify their offerings and would improve the expectations of their customers.

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During this panel discussion, S. V. Ramanan highlighted the pace at which technologies have evolved and how many insurance organizations are now being challenged to keep up with these changes. Further into the discussion, he spoke about how insurance repositories have turned into a platform which would help insurers underwrite better and identify gaps much faster. Along these lines, not only has CAMSRep has worked on improving Customer Service and Claims, it also has deployed predictive analytics to help improve persistency for life insurance companies.

In simpler terms, it helps companies simplify the customer on-boarding process. He further added that CAMSRep makes the most optimal use of current technologies rather than awaiting potential future developments. We have all seen success in cases where social media has helped allocate agents to potential customers. A similar focus helps these agents have conversations with customers beyond insurance products, in turn, building a level of trust and a better bond.

In the end, the key takeaway from the panel discussion was that technology is evolving rapidly leading to process improvement while opening new avenues for customer engagement. It is critical for insurance organizations to keep up with these developments so as to ensure customer centricity and business growth.

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72% of life insurance policies are not continued beyond five years: Know why

For the insurance industry as a whole, persistency ratio is crucial from the standpoint of customer retention and profitability. Persistency rate is the percentage of the insurer’s total insurance policies that remain in force without being lapsed. In simpler terms, it is the total percentage of all written policies that are renewed by the insured annually. For insurers, the effect of policy lapses is much larger. The lower the persistency ratio, the higher the operating expense ratio. The problem of low persistency is deeply entrenched and requires addressing product design, customer relationship management, and agents’ selling practices.

In 2015-16, the average persistency rate for life insurance policies in the 13th month was just 61% according to the IRDAI. This is quite an alarming state as compared to the global average of 90% for the same time period. This rate reduces to just 28% in the fifth year indicating the sharp decline in renewals on these policies. This low persistency rate is acutely low and is clearly hurting insurers. However, the influencers of persistency rate are all three key stakeholders: insurers, agents and customers. The question that arose next was about how we can improve the persistence rate in our offerings.

CAMSRep’s iCARE is a proprietary solution that was built to improve persistency for the life insurance industry. It enables the upload of data from insurer systems, analytics, seamless call centre operation and campaign management.  Its feature-rich tools provides insightful dashboards and real-time metrics to the operations team. The inbuilt communication engine/capabilities ensures updated to policy-holders through their choice of channels. This solution helps CAMSRep’s clients improve their CRM and identify areas of development. With the power of real-time data, insurers can now modify their offerings and services to provide the best experience to their customers. It provides analytics that help identify customer segments that aid in call prioritization and offers the customer’s unique history with the particular insurer. This further funnels into database enrichment and MIS, helping manage productivity and customer satisfaction. But the functionality of this solution is not just in identifying areas of development and offering solutions, but in helping resolve them directly with the customers. The communication channels currently offered by iCARE are SMS, email, phone calls and letters. The choice of medium rests with the client.

The revolutionary and industry-leading capabilities of CAMSRep’s iCARE was nominated and won the award in the Best Newcomer category in the recently held Asia Insurance Technology Awards, 2017.

CAMSRep is an IRDAI licensed insurance repository offering its services to a large number of insurers in India. With over 8 years’ experience in this field, CAMSRep helps policy holders buy and keep insurance policies in electronic form. In addition to this, CAMSRep also offers its expertise as a business solutions partner to large insurers.

 

CAMSRep CEO leads a discussion on the power of creating your own market at the 2nd Annual Insurance India Summit and Awards 2017

 

For the insurance industry to evolve, it needs to cater to the needs of the digitised population. Of late, insurers have derived growth mainly by improvising product offerings as per people’s aspirations, adopting vibrant distribution channels and reaching out to potential customers through targeted promotional activities. Some of the factors expected to propel the growth of this industry are the ever-growing middle class, expanding working age population and increasing disposable income levels. Additionally, the Government of India’s initiatives that work towards attaining financial inclusion are expected to further offer support for this growth.

 

Given the increased focus on the customer, the “2nd Annual Insurance India Summit and Awards, 2017” held in Mumbai served as a platform for industry stakeholders to discuss how they can realize the potential of the sector in the digital age. The theme for this summit was “Future crafting the Insurance Industry” which covered several themes including:

  •  The ongoing changes in the 3C’s of the insurance industry – cost, customer and competitors
  •   Consumer values
  •   Re-insurance
  •   Technological disruptions
  •   Digitisation

 

These points of discussion were evaluated from the insurance industry’s perspective to help key players build operational excellence and work towards developing new products.

 

A key highlight at the event was a panel discussion on “The power of creating your own market-marketing and innovation, when two worlds collide”, moderated by Mr. S V Ramanan, CEO, CAMSRep.  The eminent panellists discussed a wide spectrum of topics such as

  •  Having a digital marketing presence that sells
  •  How to make competition irrelevant – rethinking marketing strategy
  •  Increasing investments in technology and digitization to create a harmonious ecosystem for all stakeholders
  •  Evolution of business from survive to thrive in a disruptive marketplace

 

The panel comprised distinguished industry experts such as  Shalabh Saxena, Chief Operating Officer, Canara HSBC Oriental Bank of Commerce Life Insurance,  Gunjan Ghai, Senior Vice President – Brand & Marketing and Product Development, SBI General Insurance,  Anamika Roy Rashtrawar, Senior President, Bajaj Allianz General Insurance, Ashish Rao, SVP & Head – Customer Service, ICICI Prudential Life Insurance and Mr.  S. V. Ramanan, CEO & MD, CAMSRep who moderated the discussion.

 

Other prominent guests at this event included:

  •   Vinit Goenka, CMO & CRIS Centre for Railway Head – Digital Information System
  •   K Sanath Kumar, CMD, National Insurance Company
  •   Tapan Singhei, MD & CEO, Bajaj Allianz General Insurance
  •   Ashish Mehrotra, MD & CEO, Max Bupa Health Insurance
  •   Krishnan Chatterjee, Head of Marketing, SAP Indian Subcontinent

 

About CAMSRep

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CAMSRep is an Insurance Repository that helps policy holders open unique eInsurance Accounts (eIA), letting them hold all their policies in electronic form, under a single account. Electronic policies are convenient and safe, eliminating the risk of damage and loss of documents.

CAMSRep also acts as a single point of service for all ePolicies held by a policy holder, making it convenient to get service on demand – policy holders don’t really need to go to multiple agents or insurance companies for their service requirements in respect to each of their ePolicies.

Apart from repository services, CAMSRep also provides outsourcing services to multiple Insurance Companies in accordance with IRDAI regulations. We serve some of the leaders in the insurance industry and our service excellence has helped our clients deliver superior service to their customers.

ICICI Prudential Life honours CAMSRep associate with TATVA award

The last few years have witnessed the insurance sector in India undergo a phase of robust growth, transforming the industry into a dynamic arena where the race is perpetually on, and the rules are constantly evolving.Tatva Award

CAMS Insurance Repository Services Ltd (CAMSRep), one of the first to offer services and solutions in the e-insurance domain in the country, has perfectly kept in pace with the changing trends by constantly reinventing and upgrading its workflow and process efficiency dynamics. A fully owned subsidiary of CAMS and a licensed insurance repository approved by the IRDAI, CAMSRep has been consistent in developing and delivering solutions and services that match client requirements and surpass end-consumer expectations. 

tatva-awardCAMSRep as a provider of outsourcing services to the biggest and most reputed insurance companies in India, delivers to its clientele the dual advantage of outsourcing viz. specialization in policy holder services and cost benefits. As a non-aligned entity with no conflict of interest with insurers or brokers/ agents, CAMSRep has no channel partners with conflicting businesses, warranting a high degree of data confidentiality. 

Recently, in acknowledgement of this commitment of the organization to deliver only the best in terms of service and process excellence, ICICI Prudential Life, one of India’s leading life insurance companies had conferred the the prestigious TATVA award upon Mr. V. Raja, Team Lead – Payout Processing, CAMS Insurance Repository Services Limited.

CAMSRep Tatrva Award

It is noteworthy that CAMSRep has been the recipient of many such awards in the past, including the likes of the prestigious Celent & Asia Insurance Technology Award (2015) in acknowledgement of its world class service excellence and technology leadership.

What sets CAMSRep apart from competition is that:

  • CAMSRep is a neutral entity without any conflict of interest with Insurers or Brokers/ Agents.
  • CAMSRep has no channel partners with conflicting businesses. Hence, confidentiality of customer data is guaranteed.
  • No CAMSRep service point is too far away. The organization has in place a unique service delivery model that has a foot print of more than 265 locations across India.
  • The electronic repository services offered by CAMSRep makes it convenient for policy holders to get service on demand anywhere.

CAMSRep : Empathy behind envisaging and implementing points of presence across the country

Keeping in mind that there are still large areas of the country where digital reach has not been realized, CAMSRep, through its centers in over 270 locations across India, acts as a point of presence for policy holders on behalf of insurance companies; these centers facilitate the processes of  e-insurance account services as per  policy owner service requests.

A solid service delivery model with a foot print of more than 265 locations across India, has ensured that no CAMSRep service point is too far, ever. Being one of the first to envision and launch Insurance Repositories, at CAMSRep, we understand the insurance business like no other, backed  by our deep expertise and vast experience.  For more information on our services, visit us at https://www.camsrepository.com

About CAMSRep

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CAMS Insurance Repository Services Ltd (CAMSRep), a subsidiary ofCAMS, is one of the major Insurance Repositories in India Licensed by Insurance Regulatory and Development Authority of India (IRDAI). CAMSRep, as an Insurance Repository opens unique eInsurance Accounts (eIA) for policy holders,which in essence are convenient, safe and relatively risk-free electronic policies. CAMSRep also acts as a single point of service for all ePolicies held by a policy holder. Apart from repository services, CAMSRep also provides outsourcing services to multiple Insurance Companies in accordance with IRDAI regulations.

Weekly Roundup – January 14

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CAMS brings you a weekly glimpse at the key happenings in the BFSI sector, in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

GSecs

According to most recent World Bank reports, rapid economic progress is on the cards for the Asian countries of India, Cambodia, Laos and Myanmar.

gst

GST council to hold ninth meeting on Monday, January 16, to discuss and settle down on differences persisting over certain key issues.

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Government of India affirms of its respect for the autonomy and independence of the central bank of India, in a recent statement released by the Finance ministry of India.

RBI

Institute for Development and Research in Banking Technology (IDRBT), the research wing of RBI, explores the workings behind deployment of blockchain technology in banking in India.

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In a strategic move that seeks to boost the municipal bonds market, SEBI allows municipalities with surplus in their books to issue bonds dubbed ‘muni bonds’.

International Advisory Board recommends study of fee-based model for robo-based investment advisory to SEBI.

MF

Mutual funds can now be promoted through celebrity endorsements, says SEBI. Industry participants believe that the move will serve to boost penetration of mutual funds in the country.

Sources confirm that 2016 saw the highest number of demat accounts opened since 2008; increased investor awareness and rise in demand for mutual fund products cited as factors for the increased level of participation.

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In the wake of an evolving insurance market ecosystem, IRDAI institutes panel to review norms pertaining to life insurance products.

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 15 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com

Weekly Roundup – January 7

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CAMS brings you a weekly glimpse at the key happenings in the BFSI sector, in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

Bank

Encouraging turn of events in terms of unemployment and inflation have the Federal Reserve officials record with strong confidence that the U.S. economy is progressing towards the goals as set by the central bank.

gst

Central government stays keen on implementing GST , the country’s biggest tax reform in decades, between April 1 and September 16, 2017.

RBI

RBI extends deadline to end of June 2017, for exchange of old Rs. 500 and Rs. 1000 notes at its offices around the country by NRIs.

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SEBI seeks to ease entry procedure for domestic institutional investors including insurers and pension funds.

Market regulator declares that registered FPIs seeking operate in the IFSC domain can now get to work without the burden of additional documentation.

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Mutual funds reach all time high, since December 2009; total corpus amount touches Rs. 17 trillion.

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Indian insurance market expected to grow manifold in size, with at least six global reinsurers set to open operations in the country.

About CAMS:

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 15 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com

Yearly Roundup – 2016

CAMS brings you a glimpse into the key events that occurred in year 2016 in the BFSI sector, both in India and abroad. Regulatory updates or important news, here are some which might have had an impact on the sector.

GSecs

Early into 2016, Chinese economy displays signs of toppling markets across the world and sending currencies of emerging markets to their weakest levels in two decades.

In a dramatic turn of events , UK chooses to leave the EU in June 2016. Dubbed Brexit, the decision causes ripple effects that affect global proceedings politically and economically.

Falling in line with the anticipation of market experts around the world, the Federal Reserve hikes interest rates seeking to address issues related to labor market and inflation.

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Government of India decides to merge railway budget into the main budget, indicating a strategic departure from the 92 year old practice instituted by the British. Also, budget will be presented on first working day of February, starting next year.

India’s move to demonetize Rs500 and Rs1000 notes urges consumers to go the cashless and tax compliant way.

In a move to promote and boost cashless, digital payments in the country, Niti Aayog launches ‘Lucky Grahak Yojna’ and ‘Digi Dhan Yojna’ for consumers and merchants.

gst

In a landmark shift of stances, Indian government seeks to implement GST in 2017. GST council led by Union Finance Minister Arun Jaitley state finance ministers meets seven times to discuss amendments to be effected to GST.

RBI

Urjit Patel assumes office as the newly appointed chief of RBI in September 2016; GoI sets up Monetary Policy Committee to manage affairs concerning policy interest rates.

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SEBI introduces several reforms in the past year, including relaxation of norms for start-up funding.

SEBI sources confirm registration of over 1700 fresh FPIs in the April-October quarter of the current financial year, accounting for an inflow of around Rs 2800 crore in equities alone.

MF

Mutual fund folios reach 44 lakh mark in the eight months spanning April to November 2016 alone, with considerable amount of inflow coming from B15 regions of the country.

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IRDAI mandates specific set of insurance policies to be issued in digitized, electronic form, from October 1, 2016.

The Indian Insurance industry records notable growth in year 2016, thanks to the several initiatives undertaken at the behest of the Central Government.

About CAMS

CAMS Logo High Resolution

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 62% of assets of the industry across 16 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading Insurance Companies, Banks, NBFCs and Alternate Investment Funds. To know more visit www.camsonline.com