2024-04-03 By Surbhi Chauhan UPI Payments

"Tata AIA Debuts Industry-Leading WhatsApp Payment Solutions in Collaboration with Meta and Infobip"

Mumbai, 2 April 2024: Setting a new milestone in the realm of life insurance, Tata AIA Life Insurance Co. Ltd. (Tata AIA) has unveiled a ground-breaking premium payment service through its WhatsApp platform. This marks a historic debut in the life Insurance sector in India. Formerly confined to UPI-based transactions, Tata AIA now empowers its consumers with a diverse array of payment methods directly accessible through WhatsApp. Leveraging this feature, policyholders can seamlessly execute renewal payments via credit card, debit card, and net banking, revolutionizing the premium payment experience. Notably, the payment cap has been elevated to INR 1 crore from the previous limit of INR 2 lakh, offering enhanced flexibility to policyholders.

In June 2023, Tata AIA introduced a pioneering digital payment functionality, providing instant premium payment options through WhatsApp and UPI-enabled channels.

Presently, Tata AIA extends 27 services through WhatsApp to its consumers, encompassing the issuance of soft copies of policy documents, premium certificates, claims initiation and updates, renewal premium payments, contact information updates, service request tracking, NEFT updates, unit statement access, and fund value updates. Augmenting this service bouquet is 'TASHA,' an interactive service chatbot primed to address consumer queries round-the-clock.

Sanjay Arora, Executive Vice President & Head of Operations at Tata AIA, remarked, "We are thrilled to lead the industry with the introduction of these novel, consumer-centric payment solutions on WhatsApp. This innovative stride underscores our unwavering commitment to furnish consumers with unparalleled convenience and ease through cutting-edge technologies. Our endeavour is to continually present market-leading solutions that elevate the customer experience."

This user-friendly and seamless payment process facilitates consumers in executing renewal premiums directly from the familiar WhatsApp interface, promising heightened convenience. Transactions are executed swiftly, within minutes, with consumers promptly receiving acknowledgment. Moreover, the integration of credit card, debit card, and net banking options removes the necessity of relying solely on the Unified Payment Interface (UPI). With over 2 billion active users spanning across 180 countries, WhatsApp emerges as a ubiquitous platform for connectivity.

Furthermore, in a bid to further enhance the convenience for existing consumers, Tata AIA adopts an analytics-driven approach bolstered by a Decile-based strategy to refine its renewal premium collections. The company has diversified its renewal premium collection channels through various digital modes while enhancing its linguistic capabilities. Automation drives communication through WhatsApp and SMS services, facilitated by an automated campaign management system, empowering the company to analyze consumer behavior and tailor communication channels accordingly.

In FY23, Tata AIA clinched the top spot in four out of five Persistency cohorts, including the coveted 13th Month Persistency. The 13th Month Persistency ratio, based on premium, witnessed a surge from 87.76% in FY22 to 88.1% in FY23. Moreover, the Individual Death Claims Settlement ratio soared from 98.53% in FY22 to 99.01% in FY23. In Q1 FY24, the company achieved unparalleled Persistency performance across all five cohorts (13th, 25th, 37th, 49th, and 61st month).

The Persistency ratio serves as a crucial indicator of policy renewals each year, reflecting consumer confidence in the company. Therefore, industry experts emphasize scrutinizing this pivotal metric when selecting a life insurance provider. Of particular significance is the 13th Month Persistency ratio, indicating the percentage of consumers renewing their policies one year post-purchase. This metric is pivotal as dissatisfied consumers are less likely to renew their policies. Additionally, evaluation across other periods such as the 25th, 37th, 49th, and 61st months provides insights into the quality of service and support over an extended duration.