State-run Indian Bank and United India Insurance Company (UIIC) have jointly launched a new portal exclusively to offer online entry and renewal of group insurance policies. Indian Bank had successfully mobilized a non-life insurance product for UIIC in the last financial year to the tune of Rs. 31 Crores (US$ 5.3 Million) and managed to earn a handsome fee of Rs. 3.23 Crores (US$ 0.5 Million) in the process. Confident of making similar progress, the bank estimates to exceed Rs. 20 Crores (US$ 3.4 Million) in fees within this year. Owing to the enhancement & simplification of the process, the bank expects to sell about 10,000 policies purely online.
What will the portal offer?
Indian Bank & UIIC already have a co-branded product called ‘Arogya Raksha Group Mediclaim Insurance Policy’ which it has been offering since 2006. However, despite the scale of the aforementioned revenue, the process has been primarily handled by humans & physical data entry was the norm. This entitled heavy delays & unnecessary expenditure on file creation, storage & maintenance.
Insurance as a product is heavily document dependent. Documents like Policy Papers, TPA Cards, Policy Renewals & Tax Exemption Certificates are just a few of the mandatory pieces of the complete product. Having physical copies of the same is very tedious as securing a duplicate copy in case of loss is very difficult, not to mention time consuming. Hence it is elementary that the process be shifted on to electronic platforms where data storage & retrieval is extremely quick & effortless. Additionally, the bank will even offer a client side interface where data entry can be executed by the policy buyer himself.
In the past we have seen online insurance aggregators gaining prominence. In fact domains like PolicyBazaar have been doing quite well. But with the revised rules from the apex regulatory body heavily limiting the scope of earning, companies who originally offer the actual insurance product are getting into the online game themselves, instead of relying on such outsourced model of getting leads & potential customers. Based on the customer loyalty, the yet-to-be formally unveiled portal could do well. What do you think?
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