About 65% of our business applications are on Cloud: Edelweiss Life Insurance’s COO

The banking and insurance sector has been one of the frontrunners in the adoption of digital technologies. In the insurance sector especially, emerging technologies such as artificial intelligence (AI) and cloud have helped firms in various aspects such as claims management, needs discovery, security, and compliance. 

One such firm is Edelweiss Life Insurance. TechCircle interviewed Kayzad Hiramanek, Chief Operating Officer to learn more about the on going projects, technology investment, and prominent tech partnerships. Edited excerpts: 

How has the insurance industry evolved with the introduction of digital technologies?

Digital India's revolution has transformed how the insurance industry operates today. With around 600 million smartphones and 800 million internet users, access to information and services has been democratized. Even sector intermediaries to insurance have become digitally savvy with integrations with public databases like Aadhaar, UPI, and credit bureaus. This integration streamlines processes for both insurers and customers.

The rise of digital footprints has given rise to advanced analytics, providing insights on customer behaviour, risk profiles, and regional risks. These insights help insurers make smarter decisions, from product offerings to pricing, by leveraging data from public sources. AI and data models are making it easier for insurers to design and price products more accurately, enhancing efficiency and improving the customer experience. Over the past two decades, the industry has moved from manual processes to a digitally-driven, data-rich environment.

Additionally, the push for financial inclusion, especially through Jan Dhan accounts, has brought millions of previously excluded people, particularly women, into the financial ecosystem.

What are the various technology initiatives taken at Edelweiss?

Five years ago, the company embarked on its "Udaan" strategy, aimed at driving significant growth through three key pillars: customer convenience, distributor convenience, and personalisation. This strategy led to several transformative projects. One of the first was U Unlimited (U2), a tool designed to help distributors have structured and open conversations with customers to discover their long-term needs. By integrating algorithms to suggest the best-fit products based on these discussions, this tool has increased average ticket sizes by 22%, improved customer satisfaction, and reduced grievances related to mis-selling.

Other initiatives include Pragati for seamless, paper-free business workflow, and My Zindagi, a tool that acts as a "digital office" for distributors.

How has the technology investment grown in the last two years?

The company has experienced steady growth at a compounded annual rate while becoming significantly more efficient. Processes such as application handling, decision-making, and physical fieldwork have increasingly shifted away from manual efforts. The organisation now employs 3,500 people overall, with a technology team of around 80 individuals.

We work closely with AWS, with 65% of our business applications now on the cloud. This strategic partnership allows us to leverage agile development and AI-based models for instant decision-making. Additionally, we collaborate with Microsoft, using Dynamics 365 as the central platform for managing customer interactions across all touchpoints — call centers, branches, WhatsApp, email, and our website. While cloud adoption is more mature, AI is still evolving, and we’re focused on maximising the potential of both to drive efficiency and accuracy.

How do you ensure adherence to cybersecurity and compliance requirements?

The company has a robust risk management framework that covers all aspects of cybersecurity, from vulnerability analysis and penetration testing to real-time data security. They collaborate closely with their group technology teams within Edelweiss Financial Services to ensure access to the best cybersecurity practices across diverse business units. The framework also adheres to IRDAI's prescribed cybersecurity and data security regulations.

In terms of compliance, the company is sensitive to laws like Know Your Customer (KYC), income tax rules, Goods and Services Tax (GST), and IRDAI norms. Recognising the heavy regulatory requirements in the insurance industry, we introduced Dataverse, for standardised reporting across 15,000 reports, ensuring compliance with regulatory standards. By automating the reporting process through a central data warehouse, Dataverse has improved efficiency and accuracy and has eliminated the need for manual intervention.

IRDAI has issued an Insurance for All by 2047 vision. How will technology play a role in achieving this goal?

The regulator's introduction of the Bima Trinity — Bima Vahak, Bima Sugam, and Bima Vistara — is an exciting development in the insurance industry. Bima Sugam is currently being established with a CEO appointed, shareholding finalised, and the platform in development. This technology-driven platform will unify the insurance industry by streamlining policy dematerialisation, servicing, claims, and more.

Bima Vahak focuses on empowering women, assigning each insurer a state to manage and helping women use technology to sell insurance within their communities. With 600 million smartphone users in India, integrating people via native apps or web browsers has become easier.

Bima Vistara, meanwhile, offers simple-to-understand, low or medium-ticket products with no underwriting. With new product norms set to take effect in October, customers can expect greater simplicity, right-fit products, and the ability to pay only after policy acceptance, signalling positive times ahead for insurance inclusivity.