In our digitally driven world, industries in India must evolve to stay in the game, and insurance is no exception. Esakkiraja Balesakki, a Tamil Nadu-based and two-year MDRT member, shares how he navigated the digital makeover in the insurance sector, tackled regulatory challenges and leveraged technology to meet his clients’ evolving needs.

Navigating regulatory challenges

During Balesakki’s digital transformation journey, one of his most significant challenges was dealing with regulatory restrictions on providing services to clients in countries with stringent regulations for Non-resident Indians (NRIs) that restrict certain financial and insurance transactions. As a result, many of his clients who relocated to these countries could not continue their insurance services under their existing accounts.

He shares an instance, “I vividly remember a case involving a long-term client who relocated. ur systems automatically flagged and suspended their insurance policy, causing a great deal of distress for the client. This situation posed a significant risk — not only did we risk losing a valued client, but our reputation was also at stake due to perceived regulatory non-compliance. To address this issue, we adopted a proactive and client-centric approach. First, we thoroughly reviewed the regulatory guidelines to pinpoint the specific restrictions causing the disruption. Next, we explored permissible solutions within the regulatory framework. We discovered by changing the client’s address to an eligible country where the regulatory constraints were less stringent, we could re-log and continue providing the necessary services. We communicated this solution to the client, ensuring they understood the rationale behind the address change and the steps required to implement it. By collaborating closely with the client and our compliance team, we successfully updated the client’s information and re-logged their policy. This approach not only retained the client’s business but also reinforced our commitment to finding viable solutions within regulatory limits.”

Leveraging net banking for efficiency

Internet banking has emerged as a pivotal asset in streamlining insurance processes. The integration of net banking platforms has revolutionized how transactions are managed, bringing several key benefits to the workflow.

Balesakki says, “It has significantly expedited the premium collection process. Clients can now pay their premiums directly from their bank accounts, eliminating the need for physical checks or cash transactions. This shift not only speeds up the process but also reduces errors associated with manual entry and handling. One of the major advantages of net banking is the real-time update of payment statuses. This immediacy allows us to promptly confirm receipt of payments and proceed with policy issuance or renewals without unnecessary delays. It improves transparency and trust with clients as they receive instant payment confirmations.”

He further highlights, “The security protocols embedded in net banking systems ensure that all transactions are encrypted and secure, significantly reducing the risk of fraud and unauthorized access. This security assurance is critical in maintaining client confidence and protecting sensitive financial information. From the client’s perspective, net banking offers unparalleled convenience. They can manage their payments from the comfort of their home or office, at any time, without the need to visit our office or mail checks. This convenience has led to higher client satisfaction and retention rates.”

Adapting to new customer expectations

Digital transformation in the insurance industry has also led to significant shifts in customer expectations and behaviors. One of the most notable changes is the expectation for quicker policy issuance and service delivery as clients now demand immediate results and seamless experiences.

“To adapt to these changing demands, we have implemented several strategies,” shares Balesakki.

Digital application platforms: We have introduced user-friendly digital platforms where clients can submit their insurance applications online. These platforms are integrated with our backend systems to ensure that applications are processed in real-time. Automated underwriting algorithms analyze the applications instantly, reducing the time required for manual review.

Training and empowering staff: Recognizing the importance of effective communication and client education, we have invested in comprehensive training programs for our staff. This training ensures advisors are not only knowledgeable about the digital tools available but also skilled in explaining and navigating these tools with clients. By being able to clearly articulate the benefits and functionalities of digital processes, our suppport staff can better manage client expectations and guide them through the new, faster process.

Enhanced client support: We have bolstered our client support with digital channels such as chatbots, live chat, and email support. These channels provide instant responses to customer queries and issues, ensuring any bottlenecks in the policy issuance process are quickly addressed. This support infrastructure is crucial in maintaining client satisfaction and trust during the transition to faster digital processes.

Feedback loops: To continually refine and improve our digital transformation efforts, we actively solicit feedback from clients about their experiences. This feedback helps us identify pain points and areas for improvement, ensuring we remain responsive to evolving customer needs and preferences.

One particular case exemplifies the success of these efforts. “A client urgently needed an insurance policy issued due to an impending business deal. By leveraging the digital application platform and having a well-trained advisor guide the client through the process, the company issued the policy within a few hours. The client was impressed with the speed and efficiency of our service, which not only secured their business but also led to several referrals,” Balesakki recounts.

The shift towards digital transformation has necessitated a rethinking of traditional processes and customer interactions. “By embracing digital tools, enhancing staff capabilities, and maintaining a responsive support system, we have successfully adapted to meet the heightened expectations of our clients. This journey has not been without its challenges, but the benefits of a streamlined, efficient, and client-centric approach are undeniable,” asserts Balesakki.

Contact: MDRTeditorial@teamlewis.com

Adapting to digital transformation in insurance to meet client demands and market dynamics