How Bajaj Allianz Is Using Blockchain For Faster Insurance Claims Settlement
One of the biggest companies in India, Bajaj, has its footprint in many customer service verticals. They not only manufacture 2 and 3 wheelers, but also offer electricals, and financial services such as life insurance and consumer finance. With an emphasis on its potential to bring efficiency and ease of use to many of its products, the company has been looking into utilizing blockchain heavily. One of the more interesting implementations of blockchain by the company comes in its joint venture with Allianz SZ in the insurance market. The company, known Bajaj Allianz, has been utilizing blockchain for hastening resolution of insurance claims. Blockchain For Transparency Insurance claims are one of the most complex financial services that can be offered to a customer. It requires a positive mountain of paperwork and data maintenance for optimal resolution. This is due to the sheer amount of parties involved, which includes the claimee and a vast network of insurance providers. There are not only a lot of interaction between all parties but also the possibility of fraud claims and settlements. Centralized databases do not allow for multiple parties to make changes to the data contained in them, slowing down the flow of information. Moreover, opening the database up to the participants increases the risk of security breaches and false information, which in turn, requires a system of restricting access to the database. In those insurance verticals that require a quick resolution, time is of the absolute essence. This includes, among other things, health and auto insurance, with the former being especially urgent. However, owing to the complex nature of insurance claim settlement, the process takes a long time to be completed and results in errors as well. Hence, a solution was needed that not only brings transparency and ease of data access but also decreases the time for insurance claims and resolution. Blockchain technology seemed to be the perfect fit for this, owing to the data not needing third-party verification for addition. Moreover, the tech would enable a more comprehensive view of customer history and reduce the likelihood of fraud. Technology such as tokenizing customer complaints would allow for a faster resolution of problems. Inside Bajaj Allianz’s Blockchain Implementation To optimize operations and to reduce the possibility of fraud occurring, Bajaj Allianz aimed to bring blockchain to the forefront of their operations. Their implementation reportedly enabled the customer settlement turnaround time from days to minutes. Their implementation took the form of the Travel Ezee application and the Motor OTS application, both of which have since been integrated into the ‘Insurance Wallet’ application. The Travel Ezee applications catered to international travelers looking to claim flight insurances. The application allows the company to proactively inform customers about the eligibility of their payout in case of an overseas flight delay. Previously, the process involved the customer filing a claim, processing, and then a payout. Sourabh Chatterjee, the company’s Head for IT, Web Sales & Digital Marketing, stated, “We have tied up with a third-party travel flight aggregator that provides all the information and data related to flights, airports, and destinations globally. This allows us to act proactively with travel claims even before the user makes the claim request.” The customer can also buy insurance easily, by simply scanning the boarding pass and passport from their phone. Once the payment is done, the policy is sent to the email ID of the user. Motor OTS (On The Spot) allows for claiming motor insurance settlements on the spot. Customers can upload a picture of the damaged vehicle and self-inspect their motor claims for an amount of up-to ₹20,000. The application also uses data analytics to recommend immediate liability for the accident. This is said to reduce the claim settlement period to less than 30 minutes from the pre-existing period of 7 days. On this product, Chatterjee stated “Over 65 percent of the motor claims that we receive are minor claims with loss amounts of less than ₹20,000. The new initiative not only speeds up the claims process for these claims, but also the process for bigger claims.” Customer Benefit Is At The Heart Of This Move Bajaj Allianz’s move directly connects customers and service providers on the same level. There is no need for a trusted third-party to validate the transaction, as it is on the blockchain. The platform also allows for a proactive method of managing customer claims, through an intelligent integration with third-party data providers. This highly optimizes the customer experience and increases satisfaction. The decreased turnaround time also enables the building of a better brand image.
One of the biggest companies in India, Bajaj, has its footprint in many customer service verticals. They not only manufacture 2 and 3 wheelers, but also offer electricals, and financial services such as life insurance and consumer finance. With an emphasis on its potential to bring efficiency and ease of use to many of its […]
With an emphasis on its potential to bring efficiency and ease of use to many of its products, the company has been looking into utilizing blockchain heavily.
["Blockchain", "Gen AI in Insurance", "insurance"]
["insurance", "Blockchain", "programming_languages:R", "AI", "Git", "Aim", "analytics", "Gen AI in Insurance", "Rust", "R", "programming_languages:Rust"]
["AI", "analytics", "Aim", "R", "Rust", "Git", "programming_languages:R", "programming_languages:Rust"]
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