- Introduces - ‘Straight through Processing’ (STP), a new process for instant issuance of Grameen Suraksha, a low cost microinsurance policy
- First ever in the microinsurance sector
- Enhanced customer experience by quick and hassle-free issuance of the policy
- A Unique Low cost process using technology integration between the two partners
AVIVA and BASIX are pleased to announce the launch of a pioneering process – Straight Through Processing (STP) that aims to automate end-to-end retail microinsurance policy enforcement process. Being first of its kind, through this initiative, both organizations have achieved a seamless integration of their technology systems to enable bulk processing of small ticket microinsurance policies with minimal processing cost and manual intervention.
The key challenge that the company wanted to address was high cost and turn- around-time of processing for a microinsurance policy with an average ticket size of just Rs 500. BASIX has a network of over 220 remote branches and most of these branches are equipped with computers, internet connectivity and BASIX’s CRM software. With simplification of the proposal form, data entry at source and direct integration of BASIX’s data entry system with AVIVA’s policy administration system, the objective has been achieved to a huge extent and policy is enforced by AVIVA within 24 hours of data entry by Basix.
Speaking on the launch, Monica Agrawal, Director, Strategic Initiatives & Business Development, AVIVA Life Insurance said “We, at Aviva, seek to provide prosperity and peace of mind to our customers through our innovative and relevant products and processes. The launch of STP is a step in this direction, and will help us serve our financially excluded and rural customers better and faster and enable us to provide them world class services at low cost through technological intervention. In future, we plan to replicate this process for other rural insurance products as well.”
Manmath Dalai, Managing Director, Bhartiya Samruddhi Finance Limited (BASIX Group flagship Company), said “BASIX is a Pioneer in Livelihood Promotion in India and we value our relationship with Aviva, with whom we have protected more than 3 million lives. This technology integration with Aviva will further strengthen our partnership with Aviva and help us reach out to many more people in rural India with affordable protection and savings products. Constant innovation in the in-house claim processing has helped settle 1.35 lakh life, health and asset claims till date. In the year 2010 alone we have settled more than 50,000 claims that equates to the total number of claims settled by a leading mainstream insurance company in the same year. “
The relationship between Aviva and BASIX commenced 9 years ago in 2002 and since then, both the organizations are relentlessly working towards increasing the outreach of financial services in the remotest rural areas of India to achieve the mission of financial inclusion. Aviva has covered more than 3 million lives in 2010 under the group insurance policy and have provided financial assistance through claims settlement of more than Rs. 33 Crs to over 19000 households. AVIVA has also been one of the largest microinsurance players since 2009 amongst all private insurers in India in terms of covering social lives.
Aviva was one of the first companies to launch an individual microinsurance product for the lower-income segment to provide the families necessary financial aid in the unfortunate event of the death of the bread-winner. The product called Grameen Suraksha provides long term (5 or 10) years cover to the policyholder at a very affordable premium that can be paid in 2 annual installments. With a huge potential in the untapped and uninsured population in rural areas and an average policy ticket size of Rs. 500, the need was to increase the outreach through a scalable, cost-efficient and easily replicable business model in addition to providing door-step superior services to the rural clientele.