Business Overview

Company Strategy

  • Shift focus from death to living benefits, mass market data & enhanced product portfolio
  • The life expectancy in India is increasing and our Life Goals are becoming more focused on long term financial planning.
    In each segment of products, we offer long term income, liquidity, accumulation along with life insurance cover. We will continue to invest in products to address the varying ‘living benefits’ needs of our customers. However, our endeavor will be to continue to maintain a balanced mix which provides maximum value to our three key stakeholders i.e. Customer, Distributor and Shareholders.

    With an aspiration to provide our customers with the ‘Best in Class’ product suite, we launched Guaranteed Pension Goal which is one of the most unique, comprehensive and competitive annuity plan in the industry.

    Our other key product offering are:

    • Smart Protect Goal (term plan with coverage up to 99 years of age and comprehensive add-on options)
    • Smart Wealth Goal (market linked product with return of mortality charges)
    • Guaranteed Income Goal & POS Goal Suraksha (non-participating guaranteed product)
    • Flexi Income Goal (participating income/endowment plan)

    All the above and our other flagship products have helped us cater to different segments and needs of customers to enable them to achieve their goals at various stages of life. We will maintain our focus to innovate and launch feature rich customer centric products that will be ranked amongst the best in the market. Also, we continuously benchmark our investment returns with relevant market benchmarks and peers to deliver superior returns while maintaining quality of assets.

  • Continue with centricity in Mass affluent, with prominent player in mass market
  • In line with our endeavor to be the brand of choice for higher income retail customer segments, we have aligned ourselves towards gaining mind share of mass affluent and above category of customers while continuing to maintain strength in the retail mass market. In FY2021, we have revised and sharpened our customer segmentation logics through multiple parameters, thus enabling us to create customer segment based product offerings, and also to improve our risk management capabilities.

    Our strategic orientation has started showing positive results, with share of mass affluent and above customers mix moving up from 52% in FY2020 to 59% in FY2021. Our distribution set up has enabled us to cater to various customer segments, for instance, different clubs of IC’s in Agency, dedicated verticals like Elite Relationship force in proprietary sales channel, and diverse range of partners like SFBs, NBFCs, Large and Mid-Sized Private Banks, Brokers and Web Aggregators, all cater to specific target segments of customers. We will be constantly working towards achieving higher share of mass affluent and above category in the years to come.

  • Invest in new retail engines of growth
  • Traditionally, the Company has been an agency dominated Company with limited retail business contribution from non-agency channels. We embarked on a journey to scale up the alternate channels by focusing on:

    • creating a robust proprietary sales force (BALIC Direct) to invest in upselling and cross selling opportunities to the existing customers
    • strengthen our Institutional Business (IB) with various corporate distributors to focus on selling retail and
    • tie up with additional partners to scale up our retail business.

    We have tied up with several partners as Corporate Agents in the recent past. The key new partnership includes Axis Bank, IDFC First Bank, RBL Bank, India Post Payment Bank, Karur Vyasya Bank, Paytm insurance broking and PhonePe. Our alternate retail channels (non-agency) now comprise IB and BALIC Direct channels which contribute to about 55% of the retail business.

    Individual Rated
    New Business Premium
    (₹ In Crore)

  • Leadership in online ULIP sales
  • We continued to demonstrate leadership in online investments space in FY2021 also by creating innovative customer value propositions. Noteworthy offering in this space is the Capital Guarantee solution. In addition, we continued our leadership in return of mortality charges ULIPs (Life Goal Assure, Long Life Goal and launch of Smart Wealth Goal with unique child and single pay propositions). Overall non protection business added ₹ 160.1 crore of ANP in FY 2021.

    Some key customer propositions are:

    • Innovative underwriting through video based medical examination and physical medicals conducted at home helped improve issuances
    • 3 click journey for retail products to cater to our e-commerce partners
    • launched our e-commerce partnerships with PhonePe and Paytm

    We also scaled protection business through feature rich and price competitive term plan, Smart Protect Goal (SPG) and added 14,209 NOP and ₹ 24.7 crore Annualised New Business Premium (ANP) issued in FY2021. Total ANP issued for FY2021 was
    ₹ 184.8 crore.

  • Improved quality of business which includes improvement in persistency and reduced surrenders, early claims and customer grievance
  • There has been significant focus and rigorous efforts, to build a sustainable and good quality renewal book, arrest the surrenders and improve the customer experience. Below are the key initiatives undertaken for each category:

    • Persistency: The following key initiatives are undertaken to improve persistency:
      • Driving auto-payment registrations through various digital enablement to work towards premium assurance
      • Promoting self-servicing and digital payments by enabling latest technology for seamless payment experience in multiple avenues. Ex: Online payment, Wallets, UPI & Cards
      • Driving distribution ownership and accountability on persistency by linking 13th & 25th month persistency rates with the sales KPIs
      • Leveraging analytical lapse propensity models to drive renewal collections with optimum efforts
      • Outreaching customers residing in remote areas through Branch operations service executives with an orientation of doorstep service
      • Early lapse propensity model to identify probable high-risk customers on lapsation and starting customer engagement early
      • Mandatory auto-payment registrations for non-annual modes
      • Voice BOT calling usage for maximising coverage for renewal reminder
    • Surrender retention
      • Regular training of branch operations team on objection handling for effective retention
      • Surrender Retention room has been instituted in eligible offices to facilitate customer’s discussion, which includes emphasis on policy benefits and staying invested
      • Customers are offered LAIP (Loan Against Insurance Policies) option (as per product conditions) as a retention tool to fulfil temporary financial needs – ₹ 112 crore of LAIP for FY2021 as compared to ₹ 145 crore in FY2020
      • Central Surrender Retention desk is managed by a specialized team equipped with product knowledge, which communicates the benefits in order to retain customers
      • Proactively connect with focused base through Relationship Model (Virtual Account Management) to enhance customer experience and hence drive surrender retention
      • Life Goals based customer communications carrying policy benefits are triggered to customers to arrest surrender
    • Early claims
      • Use of predictive analytics and Early Warning Signals to identify high risk policies
      • Conduct field verification on suspicious cases pre and post issuance and at claims stage
      • Created strong ground intelligence and monitoring and surveillance unit keeping a constant watch on the business
      • Collaboration with peer insurance companies and created a strong network including creating an industry level repository of fraudulent entities like investors, lawyers, doctors etc.
      • Continue to conduct police training sessions and file FIR’s and police complaints against the fraud entities creating a fraud deterrence on the field
    • Customer Grievances
      • Robust RCA (Root Cause Analysis) driven process put in place to identify and route service opportunities through
        re-engineering and continuous improvement has helped minimize customer complaints year on year and control grievance ratio at one of the industry best level
      • Action driven governance matrix has helped drive proactive due diligence, management and redressal of customer escalations related to unfair business practices at an organization level
      • The results of our efforts can be seen in the improvement in our persistency, growth in renewals, and reduction in grievances.

  • Digital by default
  • The pandemic has pushed businesses across various sectors to change the way they operate and the insurance industry is no exception. From selling new policies, servicing customers to settling claims, the pandemic has pushed insurance companies to depend heavily on their digital technologies. At Bajaj Allianz Life Insurance, technology team in collaboration with various business functions successfully implemented several projects that strengthened the digital mode of sales and servicing and ensured that all internal and external teams could collaborate smoothly during the time of social distancing and Work From Home (WFH).

    Major digital initiatives on customer experience are:

    • Smart Assist app to enables sales team and partners’ organization to connect with the prospect through purely digital medium and yet maintain 100% transparency in the transaction
    • Various feature to enhance digital and contactless sales process for Distributors, Insurance Consultant and Sales Manager were initiated and completed at the initial phase of lockdown
    • iAhead – State of art CRM system to help operation team to serve customer in a better way
    • Customer Communication Management (CCM) – Centralized communication management system for SMS, Email and print communication. In phase 1, the Company has rolled out sending policy bond and service communications
    • IC and SM WhatsApp BOT – Built to provide sales person insights on his performance on real-time basis through WhatsApp
    • Multilingual websites – Enabled localization and reach to wider audience by launching Corporate website in Hindi language
    • Over the counter (OTC) was launched to make buy journey simpler, paperless and enable on the spot issuance for certain products. This also helped to drive First Time Right practice

    Company has initiated the digital transformation journey and adopted open architecture on Public Cloud for its application landscape. Technology adoption of micro services, containerization is now getting widely used to create unified service catalog and allow agents and tie-ups to issue policies via direct or integrated channels seamlessly and securely. Immediate WFH enablement for entire workforce was another major task achieved.