· 13th Month Persistency Ratio was 87.8% & the 25th Month Persistence Ratio was 79.5%
· Individual Death Claims Settlements increased to 98.53% from 98.02% in FY2021.
Bangalore, 8 September 2022: Tata AIA Life Insurance Co. Ltd. (Tata AIA), one of India’s fastest growing life insurance companies, has registered best-in-class persistency among Indian life insurance companies for FY2022. As compared to FY2021, the 13th Month Persistency ratio (based on Premium) of the Company has improved to 87.75% from 86.48%. The company’s 25th Month Persistency is now 79.48%, up from 75.84% in FY2021.
In layman’s terms, persistency ratio is the percentage of consumers who choose to renew their life insurance policy every year. Higher the percentage of consumers renewing, more likely are they satisfied with the product purchased from the insurer and its service. In a sense, the persistency ratio for the first few years after policy purchase is most important, given that dissatisfied consumers would avoid renewing their policy in the initial years itself.
Tata AIA Life measures operational excellence vide two metrices – persistency and death claim settlement ratio. Despite a challenging business and economic environment, Tata AIA Life has performed very well on these matrices in FY2022. During the last fiscal, its Individual Death Claims Settlement ratio improved from 98.02% in FY21 to 98.53%.
Commenting on the occasion, Naveen Tahilyani, Managing Director and Chief Executive Officer, Tata AIA Life said, “Our consumers’ long-term financial well-being is at the core of everything we do. Our relentless endeavor is to ensure that they are financially secure and can realize the aspirations that they set in life. To be the best on persistency ratio is a testimony to our consumer centric way of working – to delight our consumers across all stages – from the point of sale to consumer onboarding to renewal and beyond. Keeping our consumer’s needs at the forefront, we offer multiple new-age digital solutions for their benefit and convenience. We are committed to serving our customers with speed and agility as their preferred life insurance partners.”
To support its ‘Customer First’ mission, Tata AIA Life has introduced several Ease of Doing Business (EoDB) initiatives. A variety of steps like Bank KYC, Digital Pre-Submission Calling (PSC), Telemedical Examination Reports (MER), Robotic Process Automation (RPA) and Optical Character Recognition (OCR) have been simplified and streamlined in the process of buying life insurance. The integration of credit bureaus, government databases, and third-party administrators has enabled a seamless customer onboarding experience, simplified underwriting and issuance processes, and compliance with regulatory requirements. With these deep connections, Tata AIA Life has digitised payments, policy completion, and submission, enabling consumers and salesforce to complete the process anytime, anywhere, and with minimal friction.
At Tata AIA Life, the goal is to ensure the highest level of consumer satisfaction, which is why the company puts highest emphasis on renewal premiums. A company’s ability to collect renewal premiums also reflects the quality of investment advice it provides to customers at the time of onboarding. Tata AIA Life provides need-based advice complemented by consistent consumer engagement throughout the life of the policy. Several digital payment modes and platforms have been developed to facilitate renewal premium payment, top-ups, and service. In addition, it has improved the self-service experience, considering this is the preferred mode for millennials. Additionally, the Company rigorously implements the feedback it receives from consumers as part of its continuous Net Promoter Score (NPS) study that maps consumer experience across 18 aspects.