- The leadership in all 5 Persistency cohorts exemplifies the consumer’s trust in the brand, as consumers chose to renew their life insurance policy
- Individual Death Claims Settlement Ratio improved to 99.01% in FY2023 from 98.53% in FY2022
- Introduces a host of customer retention initiatives, including a simplified Online reinstatement process
Tata AIA Life Insurance Co. Ltd. (Tata AIA), one of India’s leading life insurance companies, has registered best-in-class operational performance among Indian life insurance companies. The Company registered the industry-best Persistency Ratio in 5 out of 5 cohorts for Q1FY24*, which reflects the percentage of consumers who renew their policies with Tata AIA. The Individual Death Claims Settlement ratio improved from 98.53% in FY22 to 99.01% in FY23.
In FY23, Tata AIA achieved the industry-best Persistent Performance in the four cohorts - the 13th Month, the 25th Month, the 37th Month and the 49th Month. During the first quarter ending June 2023, Tata AIA was the top performer in all five Persistency cohorts, including the 13th Month (88.2%), 25th Month (80.3%), 37th Month (76%), 49th Month (70.9%), and 61st Month (66.8%)*.
Commenting on the occasion, Sanjay Arora, Executive Vice President, and Head of Operations Tata AIA Life said, “The long-term financial wellbeing of our consumers is at the core of everything we do. Therefore, it is our relentless goal to ensure their financial security and help them achieve their aspirations. Our best-in-class Persistency ratio results from our customers' trust in Tata AIA to do the right thing and do it in the right way when it comes to securing their long-term financial future. At every stage of the customer journey, from the point of sale to consumer onboarding to renewal and beyond, we will continue to put our customers' needs first.”
Persistency ratio refers to the percentage of consumers who renew their life insurance policy every year. Generally, the higher the renewal rate, the more satisfied the consumer is with the product and the insurer's service.
TATA AIA Life Insurance has always believed in continual process enhancements that help drive consumer delight. One such initiative was taken to ease future premium payments. The Company introduced a simplified Online Policy Reinstatement process to prevent lapsation of policies. This initiative enables policy owners to reinstate their policies online by paying the due premium and providing a digital health certificate. Another initiative undertaken was through introduction of loans for consumers who are unable to pay premiums and the policies have acquired surrender value. These services ensure that the consumer does not lose his protection cover and investment made and continues towards his financial goal.
The Company also focused on digitising the recurring premium payment process by partnering with distribution partners like HDFC Bank and IndusInd Bank for Standing instruction and E-NACH processes for other banks. The Company is also the first life insurer to enable digital payments via WhatsApp Pay and Unified Payment Interfaces. This is in addition to the 30+ services already available through the WhatsApp service channel, which is the most popular servicing channel among consumers.
The very reason why people purchase a life insurance policy is to secure their loved ones financially. It is, therefore, imperative that the claims be settled as soon as possible. Tata AIA Life believes in providing its customers with an empathetic, hassle-free, and simple claims management process by ensuring that beneficiaries receive timely and equitable payouts in case of an unfortunate event in the lives of its policyholders.
To approve a claim and disburse the claim amount quickly and without hassles, Tata AIA provides its policyholders and the beneficiaries, multiple channels for informing claims. Beneficiaries can register claims through various platforms and touchpoints: the Claims section of the Website, WhatsApp, Branch Visits, Email and Toll-Free Customer Care telephone. Tata AIA also utilizes data driven platforms & technologies to ensure that the risk checks are done at the onboarding stage, thereby improving transparency & trust, and ensuring superior claims experience for genuine policyholders while at the same time reducing fraudulent claims. All this eventually translates into a higher Claims Settlement Ratio.
As a result of these measures, Tata AIA's Individual Death Claims Settlement ratio, (another critical metric other than Persistency Ratio), improved from 98.53% in FY’22 to 99.01% in FY23.
*Source: IRDAI Public Disclosure
