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Sunil-Jain1 Photograph: (Sunil-Jain1)
As insurance companies pivot from operational reliance on technology to embedding it as a core strategy, Pramerica Life Insurance leads by example. CTO Sunil Jain discusses how innovations in AI, cloud platforms, and data frameworks are not only solving current challenges but shaping the future of the industry.
In an industry where accuracy and agility define success, technology has emerged as a decisive differentiator. Echoing Sherlock Holmes’ timeless wisdom, “It is a capital mistake to theorize before one has data,” Pramerica Life Insurance’s approach is rooted in leveraging data to pre-empt challenges and deliver unmatched customer experiences. Sunil Jain, Chief Technology Officer, Pramerica Life Insurance, explains how this strategic shift is reshaping the narrative of insurance in a technology-first world, blending operational efficiency with a customer-first ethos.
One of our key innovations is a silent investigation, where we gather and verify critical data without bothering the customer.
Pramerica Life has significantly reduced claims settlement time through tele-investigation and online verification. Can you share the technological framework behind this success? How do you address challenges like data accuracy and scalability?
At Pramerica Life, we’ve made it our mission to enhance the customer experience, especially during critical moments like claims processing. We have adopted a robust technological framework that leverages tele-investigation, QR code scanning and online verification systems to streamline operations and reduce settlement time significantly—by 25%, from 4.1 days in FY23 to just 2.9 days in FY24.
One of our key innovations is a silent investigation, where we gather and verify critical data without bothering the customer. For instance, we tap into trusted databases like CIBIL for credit history and the Insurance Information Bureau of India (IIB) to validate claims. These integrations help us perform quick, accurate assessments while ensuring compliance.
We’ve also introduced Nominee KYC and advanced photo-matching technologies to cross-check the policyholder and nominee’s identities, which minimises fraud and speeds up approvals.
Accuracy is paramount and we address this by relying on verified and trusted data sources like CIBIL and IIB. Automation plays a critical role – our AI and machine learning algorithms analyse and cross-check data to flag inconsistencies instantly. This not only speeds up the process but also minimizes errors. By streamlining the evaluation process, it also helps in identifying insurance shopping cases, where individuals may attempt to take multiple policies for undue advantage, ensuring ethical practices and protecting business integrity.
We are working on propensity models, combining data from bureaus, Vision AI and financial records to assess whether a customer can afford a policy and what their persistence rate might be.
For scalability, we have built a cloud-based system that handles increasing claim volumes without delays. Modular updates and real-time monitoring ensure our framework evolves with customer demands and industry requirements.
Ultimately, our goal is to provide a seamless, transparent process that customers can trust and these technological advancements have been pivotal in achieving that.
Self-service platforms have enhanced customer access and policy management. How do you ensure a seamless yet secure experience for customers, particularly in an era of increasing cybersecurity threats?
At Pramerica Life, we’ve introduced a multi-channel self-service ecosystem that enables customers to manage their policies conveniently. Through our CRM system, customer queries (SMS, emails) are directly transferred to the concerned department and are resolved at the earliest. This not only streamlines communication but also provides a personalised experience that enhances customer delight by ensuring faster query resolutions and proactive engagement.
On the security front, we have implemented a Vulnerability Assessment Framework (VAF), backed by ISO-certified processes and two-factor authentication for all customer touchpoints. This ensures that sensitive information is protected at every stage. Additionally, our Web Application Firewall (WAF) safeguards against web-based threats, preventing unauthorized access and ensuring secure online interactions. Complementing these measures, our Security Operations Center (SOC) continuously monitors and mitigates risks in real-time, providing an extra layer of protection against emerging cyber threats.
We were early adopters of cloud platforms in 2018, positioning ourselves as industry pioneers in leveraging this transformative technology.
By combining convenience with cutting-edge security practices, we’ve built a platform where customers can confidently access their information and manage their policies, knowing their data is safe. This synergy of customer delight and trust forms the foundation of our digital transformation efforts.
With e-KYC, e-NACH, and video PIVC enabling instant policy issuance, how has this impacted customer acquisition? Are there additional innovations planned to further streamline the onboarding journey?
The integration of e-KYC, e-NACH and video PIVC has revolutionized our onboarding process, enabling instant policy issuance in majority of cases with no documentation required. This has significantly reduced customer hassle and made the journey seamless. These innovations have positively impacted customer acquisition by simplifying the buying experience, especially for tech-savvy individuals seeking quick and efficient solutions.
Building on this foundation, we’ve implemented the Digital Analyser Toolbox, which integrates with trusted databases like the Insurance Information Bureau of India (IIB), CIBIL, EPFO and other KYC systems. It leverages advanced technologies like Optical Character Recognition (OCR) and Vision AI for document verification, ensuring data accuracy. This toolbox supports our underwriting team by providing pre-verified inputs, enabling quicker, more accurate decision-making.
To further streamline the process, we are exploring a lighter version of our front-end systems for faster customer interactions and integrating AI-driven predictive analytics to pre-assess eligibility and risk. This minimizes manual intervention, reduces processing time and enhances scalability. Additionally, advanced biometric verification methods are being developed to maintain robust security without compromising on user experience.
Our ultimate goal is to continue innovating and make life insurance purchases effortless, ensuring convenience, trust and satisfaction at every stage of the customer journey.
Integrating data from IIB and credit bureaus has streamlined underwriting processes. How does Pramerica Life ensure ethical data use while maintaining speed and efficiency in decision-making?
To maintain ethical data use, we strictly adhere to regulatory guidelines and industry standards. Customer data is accessed solely for legitimate purposes like verifying policy applications, assessing risk and identifying potential fraud. Transparency is key and we ensure customers are aware of how their data will be used and take explicit consent before proceeding.
For instance, if a fraud indicator arises during data checks, such as a mismatch in policyholder information or a history of suspicious claims, we act decisively to decline the application. Similarly, by leveraging credit bureau insights, we can assess if a customer is overinsured based on their existing financial obligations. This not only protects the business but also ensures customers aren’t burdened with unnecessary premiums.
Our processes are designed to strike a balance between ethical data use and operational efficiency. Automated systems flag potential risks while allowing our underwriters to make informed, unbiased decisions, ensuring fairness and compliance at every step.
With advancements in AI, generative AI, Blockchain, and IoT, which emerging technologies do you see as the most transformative for the insurance sector? How is Pramerica Life preparing to adopt these innovations?
AI is already playing a significant role in underwriting, which helps reduce risk. Underwriting data is much larger than claims data, with claims being less than 1%. AI engines process this vast amount of data quickly, identifying patterns and correlations we might not foresee, allowing policies to be adjusted more accurately.
Additionally, we are working on propensity models, combining data from bureaus, Vision AI and financial records to assess whether a customer can afford a policy and what their persistence rate might be. The system continually evolves as it processes more data, providing better insights.
We have moved beyond the POC stage for AI and GenAI. For instance, in collaboration with our claims team, we’ve started implementing an AI model to assess claims, particularly focusing on fraud detection. Initially, there was some resistance to the AI-driven insights, but as we worked with the team, they have started accepting the results. The model highlights signals, like a recent bank account or nominee change that can indicate potential fraud. Over time, we’ve expanded from identifying 10 to now around 18-19 key fraud indicators. The claims team is now more aligned with the AI and it has led to faster claims processing, when the risk is flagged as low.
On the GenAI side, we are feeding back claims data to improve model accuracy. We are also working on a lead propensity model and using Vision AI in underwriting to replace traditional OCR, which is more expensive. We have started pilots here and while the results will take time, we are optimistic about the benefits.
As insurers increasingly move to cloud platforms, what key trends are shaping this shift? How is Pramerica Life balancing operational efficiency with stringent data privacy and compliance requirements?
We were early adopters of cloud platforms in 2018, positioning ourselves as industry pioneers in leveraging this transformative technology.
A key driver behind this shift is the growing demand for scalability and flexibility. The move to the cloud has enabled us to evolve beyond traditional server hosting to deploying Generative AI solutions that analyse data, enhance customer experiences and streamline operations. The availability and robustness of cloud platforms have been instrumental in ensuring seamless business continuity, even during periods of peak demand.
Security and compliance remain at the core of our approach, especially as we handle sensitive customer data. This transition has empowered us to scale services efficiently, enhance agility and lay the groundwork for future-ready solutions, all while maintaining our customers’ trust and safeguarding their data.
Pramerica Life is building a data-driven, direct-to-customer ecosystem for personalized outreach and cross-sell opportunities. What role does AI/ML play in creating actionable insights, and how do you measure the effectiveness of these initiatives?
We are aiming for an ambitious 30% CAGR growth over the next five years, and one of the key pillars to achieve this is expanding our reach. The D2C model will not only enhance our outreach but also facilitate cross-selling initiatives across various channels, allowing us to better serve our customers. Technology plays a pivotal role in this ecosystem, enabling seamless interactions and personalized experiences that resonate with our customers’ needs.
Data will be instrumental in shaping this channel allowing valuable insights into customer behaviors and preferences. We are currently making early investments in setting up this model and are committed to evolve based on our learnings and insights.
Sunil Jain
CTO, Pramerica
minus@cybermedia.co.in