Insurance companies in Bangladesh are increasingly opting for customised software and mobile apps to reach out to new customers and better manage the old ones.
Experts on the sector said the digital transformation of the insurance sector has not only reduced the overheads but also given the companies’ management better tools for handling their day-to-day operations.
“We have turned to digitising our company for our own sake,” said Ahsanul Islam Titu, managing director of Sandhani Life Insurance Company. “A digitised company is easier to manage,” he added.
Titu said, “Fully digitised basically means running a paperless insurance company.
This is quite a phenomenal change, I must say, because, if you are familiar with the insurance sector of the country, you would know that almost everything here still relies on paper.”
He explained: “Earlier, money receipts were given against each transaction, which were called premiums or annual receipts. Now these money receipts have been transferred to computer generated receipts.”
“Another digitised change in our company can be seen in the case of bill payments that were previously calculated manually. This is totally automated now. Our computers do all the calculations and generate bills without making any errors or mistakes,” he said.
Sandhani recently developed an app named i-life which it calls a comprehensive tool for insurance management. It is an Android-based app that one can access with the help of a smartphone.
“Now, by sitting in front of a computer in my office, I can monitor how much money is being collected across the country. With
‘i-life’, I will be able to do that on my phone instead of my computer. This will develop further mobility and greater advantages,” said Ahsanul Islam.
Green Delta Insurance Company, too, has launched its Digital Insurance scheme. To avail its services, the customer needs to go online, select the product that he/she needs, check the price and confirm the premium he/she needs to pay.
“To make the payment, you can choose Mastercard, Visacard, bKash, Rocket, UPay and iPay since Green Delta is affiliated with every mobile payment service provider in Bangladesh.
After completing your payment, you will receive a digital copy of the insurance in a few minutes. This is as good as a physical copy,” explained Mainuddin Ahmed, additional managing director of Green Delta Insurance.
It means, he said, a person can purchase the insurance for his/her car without stepping out of the room. “It’s as simple as that. The hard copy of the insurance will reach that person’s address within 24 to 48 hours. In case of any problem, that person can get in touch with the call centre of Green Delta or drop us an email,” he said.
Insurance industry expert Shagar Hasnat told The Independent that customers are no longer buying insurance through a linear path.
“If acquiring a customer is the first step for insurers, then retaining them is equally important because of a dynamic and multi-directional purchase journey.
Insurers need to invent a new model surrounding the customer that’s more relevant to them.”
He said insurers are expected to immensely gain through the digital transformation of their distribution process.
“It offers opportunities to seriously reduce operational costs and improve efficiency by creating a holistic system with information and support across all channels.
As of now, digitisation can make way for companies by determining which customer segment can be effectively targeted, as also customers’ post-purchase experiences.”
Hasnat said customers are increasingly demanding and expect personalised interactions with insurers via any device at any hour.
“Rich customer data can help us model a behaviour-based pricing system that could further lead to more efficient products.”