Background: Prathna Non-Banking Financial Company (NBFC) is a leading financial services company in India. They provide a wide range of financial products such as loans, savings accounts, and investments to their customers. With the increasing demand for insurance products in the market, they realized the need to offer insurance solutions to their customers as well. However, they did not want to set up a separate insurance arm and instead decided to adopt embedded insurance through technology.
Challenges:
Lack of insurance expertise: As an NBFC, Prathna did not have the necessary expertise to offer insurance products. They needed to partner with an insurance provider to offer insurance solutions to their customers.
Integration with existing technology: Prathna needed to integrate the insurance solutions seamlessly with their existing technology platforms to ensure a smooth customer experience.
Regulatory compliance: As an NBFC, Prathna needed to comply with various regulations related to offering insurance products to customers.
Solution: To address these challenges, Prathna adopted embedded insurance through technology. Here’s how they did it:
Partnership with insurance providers: Prathna partnered with multiple insurance providers to offer a wide range of insurance products to their customers. They chose insurance providers who had a good reputation in the market and could provide customized insurance solutions to their customers.
Integration with existing technology: Prathna worked closely with the insurance providers to integrate the insurance solutions seamlessly with their existing technology platforms. They created a single dashboard that could provide a comprehensive view of the customer’s financial portfolio, including their insurance policies.
Regulatory compliance: Prathna worked with their legal team to ensure that they complied with all the regulatory requirements related to offering insurance products to their customers. They made sure that the insurance solutions they offered were in compliance with the Insurance Regulatory and Development Authority of India (IRDAI) guidelines.
Customer education: To ensure that their customers understood the insurance products they were offering, Prathna conducted extensive education and training programs. They created video tutorials, conducted webinars, and offered one-on-one training to help customers understand the insurance products and make informed decisions.
Results: Prathna’s adoption of embedded insurance through technology has yielded positive results:
Increased revenue: The adoption of embedded insurance has enabled Prathna to offer a wider range of financial products to their customers, leading to an increase in revenue.
Improved customer experience: By integrating the insurance solutions seamlessly with their existing technology platforms, Prathna has provided a seamless customer experience to their customers.
Compliance with regulations: Prathna has been able to comply with all the regulatory requirements related to offering insurance products to their customers.
Improved customer loyalty: By offering customized insurance solutions to their customers, Prathna has been able to improve customer loyalty and retention.
Conclusion: The adoption of embedded insurance through technology has been a success story for Prathna NBFC. By partnering with insurance providers, integrating insurance solutions seamlessly with their existing technology platforms, complying with regulations, and providing customer education, they have been able to offer a wide range of insurance products to their customers. This has resulted in increased revenue, improved customer experience, compliance with regulations, and improved customer loyalty.
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