Bajaj Allianz's KV Dipu on digital transformation, new tech at play & more

Bajaj Allianz General Insurance has been on a mission to embrace digital transformation, aiming to enhance both operational efficiency and customer satisfaction. In an exclusive interview, KV Dipu, Senior President & Head of Operations, Communities & Customer Experience, India, Bajaj Allianz General Insurance, shed light on the significant role of emerging technologies in reshaping the insurance sector, how the company is leveraging these technologies, particularly AI, to drive innovation and foster growth. Edited Excerpts:  

What key tech trends do you believe are shaping the insurance industry, and how is your company staying ahead of them? 

In the insurance industry, technology plays a crucial role, especially evident during the Covid period where digital enablement ensured uninterrupted service. Amidst these advancements, one notable change is the impact of Gen AI (generative artificial intelligence), a powerful force in transforming the insurance landscape globally. We are actively embracing Gen AI, exploring diverse use cases to enhance our industry practices. 

Two significant trends stand out. Firstly, the evolution in customer service methods — from traditional human interactions to digital assets like texts and messaging. Now, we're witnessing the rise of Tech-Enabled Voice, where machines replicate human interactions, offering a more personalised experience. 

The second trend addresses the importance of multilingual communication. It's challenging as off-the-shelf products often cater primarily to English. Overcoming this hurdle is crucial to ensuring a wider, more inclusive reach for customers who prefer different languages. 

In summary, the insurance industry is navigating these exciting changes, focusing on leveraging Gen AI and enhancing communication methods to provide a seamless and inclusive experience for customers across the globe. 

Can you highlight key changes and strategies that contributed to the success of Bajaj Allianz's digital transformation journey? 

We're recognised for our digital prowess, and our approach is straightforward, which is customer-first. We don't chase trends or adopt buzzwords without purpose. Instead, we focus on understanding our customers' needs and addressing them. Our strategy involves solving problems and creating unique experiences. 

Despite starting our digital transformation journey amid the challenges of Covid, we've excelled. While many struggled, we provided essential interpreter services, maintaining our commitment to customer satisfaction. During the pandemic, our customer agreements ratio dropped by only 3%, showcasing our resilience and customer-centric initiatives. 

Over the past six years, we've actively embraced emerging technologies. For instance, we implemented blockchain in insurance, changing the claims process dynamics. Additionally, our IoT launch included telematics, enabling smart cars and introducing features like geofencing for added security. By leveraging digital technologies, we've not only transformed our business but also enriched our customers' experiences. 
 
You've discussed using blockchain and IoT in your company. What other tech areas are you investing in for digital transformation? 

We are focused on three key areas that are customer-facing assets, middleware, and our core platform. First, in enhancing customer interaction, we concentrated on WhatsApp, our AI-driven bot, and our mobile app. This strategic shift allowed us to transition from 80% call centre reliance to 80% digital assets during the onset of Covid, ensuring uninterrupted service. 

The second focus was on middleware, specifically our customer relationship platform (CRM). This transformation facilitated seamless connectivity across multiple customer channels, enabling us to smoothly transition from in-office to remote customer service during the pandemic. 

The third area of emphasis was our core platform. By investing in the latest technology and becoming a pioneer in cloud hosting, we ensured not only the robustness of our platform but also our position as a market leader. This holistic approach of digitising customer-facing assets, optimising middleware, and transforming our core has been instrumental in our success over the years. 

Does data analytics contribute to your digital transformation, specifically in enhancing risk assessments or claim processing? 

Today, handling diverse data forms is crucial. Whether it's in written, spoken, image, or video format, data comes in various types. Effectively processing this wealth of information is key to offering a comprehensive response. For instance, transitioning to the cloud allowed us to move away from isolated data marts, enabling a unified view of organisational data. This shift greatly improved our ability to understand and serve customers. Analytics, driven by a deep understanding of customer data, enhances our responsiveness and tailors our offerings to their needs. An illustrative case involves pandemic-driven changes. When customers clicked on a branch location, a real-time bot would engage, offering immediate assistance. This innovative approach streamlined services, acknowledging the shift in customer behaviour towards online interactions over physical visits. This underscores our commitment to leveraging data for customer-centric solutions.

In the digital age, with data privacy in the spotlight, how does your company ensure the security of customer data? 

Ensuring the security of our customers' data is a top priority. Due to the current shortage, we've made significant investments in data security to guarantee the safety of their information. This is non-negotiable for us. 

When customers sign up, we provide them with choices. We make it clear that if they prefer not to share data, they can opt for a standard product. On the other hand, for those who require more customisation, we offer tailored solutions. We aim to strike a balance between privacy and the need for customisation, catering to both preferences. 

For customers hesitant to share data, we do not force them into a standard product until they're comfortable. The choice is explicit, and we clearly explain that data sharing is optional. Customers explicitly agree or disagree to share their data for the sake of personalised products and services. 

In terms of our investments, we have a robust data security team and prioritise intensive training. Our approach also includes tools like automatic data destruction when it's no longer needed. We believe in a combination of security measures, team education, and transparent choices for our customers.

How do you benchmark your tech journey with your competitors or industry peers? 

We have among the lowest grievance ratios among major players, and independent third-party checks like NPS consistently place us above our competitors. These market metrics unequivocally highlight our strength. 

How do you think Gen AI will transform the insurance industry? 

Let's take a look at how AI has impacted our operations. When our call centres had to abruptly close, we needed a solution to continue servicing customers. We invested in an AI system which, despite some initial setbacks, managed to handle customer inquiries with efficiency. This move led to an impressive reduction in service disruptions by over 8%. 

Another area where AI has revolutionised our processes is in the claims handling. Traditionally, customers would file a report after an incident, initiating a lengthy process. However, we introduced a new system where customers could simply take photos of the damage, which would then be swiftly assessed by an AI engine. Within minutes, our agents could provide a response, speeding up the entire claims process significantly. 

These examples illustrate how leveraging AI technology has enabled us to streamline our operations and enhance customer experiences. Moving forward, it's crucial to recognise specific use cases for AI rather than just adopting it blindly. In Chennai, for instance, we're exploring various applications of AI tailored to our specific needs, whether it's in data summarisation or providing valuable insights to our customer-facing teams. This targeted approach ensures that AI truly makes a meaningful impact on our business.