Mobile Technology for enrolment and claim settlement in Cattle Insurance. 9 th International Microinsurance Conference Jakarta, Indonesia

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1 Mobile Technology for enrolment and claim settlement in Cattle Insurance 9 th International Microinsurance Conference Jakarta, Indonesia

2 About us JV between Tata Group and American International Group. Tata AIG was one of the 1 st private company to enter Indian insurance market in Gross Premium Written (GPW) of $ 400 million in FY Awarded for best non-urban coverage in % of GPW comes from rural business

3 Livestock Insurance The Need More than 100 million families depend on livestock as their primary livelihood source. As per latest livestock census, India has a livestock population of 485 million out of which 283 million are bovines. Livestock Insurance launched around 4 decades back. Current penetration is less than 2 % Premium Potential of $ 2.8 billion (Average rate of $10/ cattle)

4 Livestock Insurance Our experience Tata AIG entered livestock insurance market in Covered 300,000 animals with premium of approx 3.5 million in FY Implementing social sector schemes promoted by governments Tie-up with dairies, MFI s, NGO to increase outreach Process: All animals to be tagged using polyurethane tags Live animal photographs of all animals captured at the time of tagging All claims to be reported on our 24 hr toll free and to be surveyed Strong underwriting processes and field control important for fraud control

5 Challenges High losses on account of frauds, moral hazard and adverse selection Vast geography Low ticket size ($ 10 / cattle) Unavailability of reliable postal services in rural areas

6 Mobile Technology an enabler 929 million mobile subscribers Tele density of 80% 121 million Internet subscriber GPRS data services available in rural areas

7 MIF ILO Grant Round 5: Application title : Use of mobile technology in cattle insurance Advantages of using mobile technology Real time relay of data from field to central server Quick policy issuance Quicker claim settlement On spot carcass verification Better data management

8 Solution An android based mobile application which can be installed on any $100 mobile One application for enrolment and claims management Data uploaded to a central server on real time basis Online/ Offline mode On spot carcass verification and claim authentication

9 Claims Processing: Claim Reporting All claims reported at 24 hr toll free no. Surveyor assigned by Tata AIG visits the site in next 6-8 hours

10 Claims Processing : Claim Reporting Tata AIG claims team received an automated message once data is submitted from field

11 Claim Processing : Claim Approval & Disbursement Side by side comparison of live animal and carcass photograph s Images of all necessary documents ID proof, statement, passbook etc available on system Claim can be approved within 1 day of claim registration and amount can be directly transferred to beneficiaries account

12 Advantages of new process over old Enrolment and Claim data hits Tata AIG server within few hours Full data including cattle and owner details, live animal photographs and payment instrument details available in one place Increased customer satisfaction Policy issuance time decreased by more than 50% Claim settlement time decreased by 40%

13 Challenges and Learning Cost for software development Challenges Learning's Integration with core insurance systems Training of field agents considering their modest educational background Developing application in vernacular language Mobile phones are more handy as compared to POS

14 Way Ahead Launch application in various vernacular languages Expanding pilot from 2 districts to more locations Active device management (push updates, activate/ deactivate device etc.) Real time link with core systems enabling on spot policy issuance

15 Backend Data Management User Management

16 Backend Data Management Customer Management

17 Backend Data Management Master Data Management

18 Backend Data Management Enrolment Data Management

19 Enrolment Process

20 TERIMA KASIH THANK YOU ALOK SHUKLA TATA AIG GENERAL INSURANCE COMPANY