Tata Group-backed life insurance arm, Tata AIA on Wednesday introduced digital payments via WhatsApp and Unified Payment Interfaces. This newly added payment option is first-of-its-kind in the insurance industry and offers an instant premium payment facility through WhatsApp and UPI-enabled payment options.
For easy use for both tech and non-tech-savvy consumers, it also offers a hassle-free premium payment experience.
Through the new feature, policyholders can pay premiums digitally and receive a quick premium payment confirmation & acknowledgment.
Sanjay Arora, Executive Vice President & Head of Operations of Tata AIA, said, “At Tata AIA, we are committed to providing our policyholders with convenient, hassle-free premium payment options using modes that are preferred by them. Our bottom-up approach, armed with technology, allows us to understand the needs of our consumers and continually improve our services.”
Arora added, “Thanks to an in-house intelligent platform built in collaboration with WhatsApp and PayU, we have taken a significant step forward in improving consumer experience and enhancing the ease of transactions for them.”
Notably, WhatsApp and UPI have become household messaging and payment facilities, respectively, in India. The country has close to 500 million WhatsApp users today and more than 300 million UPI users.
It said, this clearly indicates the penetration of these new-age platforms. By introducing premium payment through these platforms, Tata AIA is ensuring that it provides its consumers with the ease and convenience of doing a transaction through their preferred modes.
Tata AIA has adopted an Analytics-driven, Decile based approach to improve its renewal premium collections. The company has enabled renewal premium collections via multiple Digital modes and enhanced its language capability to 5 Languages –English, Hindi, Tamil, Gujarati, and Bengali.
This life insurer has delivered very impressively on the two most important operational metrics despite Claim Settlement Ratio and Persistency.
In FY23, the Individual Death Claims Settlement ratio improved to 99.01% from 98.53% in FY22. Also, its Persistency ratio, reflecting the percentage of consumers who choose to renew their policies with Tata AIA, has earned the Company the top rank in four out of five persistency cohorts.
Further, the 13-month persistency ratio (based on premium) improved to 88.1% in FY23 from 87.8% from the previous year while total Renewal Premium income recorded growth of 32% to ₹ 11,964 crore in FY23 ( ₹ 9,086 crore).
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Updated: 28 Jun 2023, 03:35 PM IST