Tata AIA launches industry-first payment solutions on WhatsApp
New introduction is an outcome of a partnership with Meta and Infobip
The Payment Solution will enable consumers to make payment for renewal of Tata AIA products using Credit card, Debit card or Net banking option on the WhatsApp platform.
This ‘first of its kind’ launch enables consumers to make payments beyond UPI option on Tata AIA’s WhatsApp platform.
The initiative also expands Tata AIA’s comprehensive range of services on WhatsApp, including policy document, managing claims, fund value updates etc.
Mumbai, 1April 2024: Tata AIA Life Insurance Co. Ltd. (Tata AIA), one of India’s leading life insurers, has launched a premium payment service on its WhatsApp platform marking the first-ever launch of its kind in the life insurance sector. Previously limited to UPI-based transactions, Tata AIA consumers can now use a wide range of payment methods within WhatsApp. Using WhatsApp, policyholders can now easily make renewal payments through credit card, debit card, and net banking options. Policyholders can now pay premium up to INR 1 crore, instead of the earlier limit of INR 2 lakh.
In June 2023, Tata AIA introduced industry-first digital payment feature provides an instant premium payment facility through WhatsApp and UPI-enabled payment options.
There are 27 services offered by Tata AIA on WhatsApp for its consumers. These include soft copies of the Policy document, premium certificate, claims initiation and updates, renewal premium payments, contact information update, service request tracking, NEFT update, unit statement, and fund value updates. The Company also has an interactive service bot called TASHA that responds to consumer queries 24 hours a day, 7 days a week.
Commenting on this occasion, Sanjay Arora, Executive Vice President & Head of Operations of Tata AIA, said, “ We are excited to set the trend in the industry with the introduction of the new, consumer centric payment options on WhatsApp. This innovative initiative is part of our ongoing commitment to providing consumers with convenience and ease through cutting-edge technologies. We will continue to offer market-leading solutions that will help us always deliver superior customer experience.”
By using this convenient and seamless payment process, consumers can now pay renewal premiums from their familiar WhatsApp interface and thereby enjoy more flexibility. Payments can be made quicklywithin a minute , and consumers receive immediate acknowledgement. Additionally, the integration of credit card, debit card, and net banking options eliminates the need to use the Unified Payment Interface (UPI). More than 2 billion people in over 180 countries use WhatsApp to stay in touch with friend and family, anytime and anywhere*.
Further, to add to the convenience of its existing consumers, Tata AIA adopts an Analytics-driven, Decile based approach to improve its renewal premium collections. The company has enabled renewal premium collections via multiple Digital modes and enhanced its language capability. Communication drive via WhatsApp and SMS services have been automated campaign management system, enabling the Company to study behaviour and modify communication channels suitably.
In FY23, Tata AIA ranked first in four of the five Persistency cohorts, including the 13th Month Persistency. The 13th Month Persistency ratio (based on premium) of the Company improved from 87.76% in FY22 to 88.1%. Additionally, the Individual Death Claims Settlement ratio improved from 98.53% in FY22 to 99.01% in FY23. In Q1, FY24, the Company achieved the industry-best Persistency performance across all 5 cohorts (13th, 25th, 37th, 49th, and 61st month).
The Persistency ratio measures the percentage of policy renewals each year, indicating their confidence in the company. Therefore, experts always advise consumers to check this key metric when choosing a life insurance company. One of the key Persistency metrics is the 13th Month Persistency ratio or the percentage of consumers renewing their policies one year after buying them. This is most important since unsatisfied consumers are unlikely to renew their policies. Further, one should evaluate the insurer on other periods including the 25th, 37th, 49th, and 61st month, thereby gauging the quality of service and support over a longer period.
*https://www.whatsapp.com/about#:~:text=WhatsApp%20started%20as%20an%20alternative,end%20encryption%20into%20our%20app.
About Tata AIA Life
Tata AIA Life Insurance Company Limited (Tata AIA) is a joint venture Company formed by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asian life insurance group in the world, spanning 18 markets in the Asia Pacific region.
Tata AIA reported an Individual Weighted New Business Premium (IWNBP) income of INR 7,092 Cr in FY23, an increase of 59% over FY22. The Individual Death Claims Settlement ratio improved from 98.53% in FY22 to 99.01% in FY23. The Persistency ratio, reflecting the percentage of consumers who choose to renew their policies with Tata AIA, has earned the Company the top rank in four out of five cohorts, including 13th-month persistency. Compared to FY22, the 13th Month Persistency ratio (based on Premium) of the Company improved to 88.1%.
About the Tata Group
Founded by Jamsetji Tata in 1868, the Tata Group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals. The group operates in more than 100 countries across six continents, with a mission ‘To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust’.
Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation and art and culture. In 2022-23, the revenue of Tata companies, taken together, was $150 billion (INR 12 trillion). These companies collectively employ over 1 million people.
Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors. There are 29 publicly listed Tata enterprises with a combined market capitalisation of $300 billion (INR 24 trillion) as on July 31, 2023.
About AIA
AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets–wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR(1), Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau SAR(2), and a 49 per cent joint venture in India. In addition, AIA has a 24.99 per cent shareholding in China Post Life Insurance Co., Ltd.
The business that is now AIA was first established in Shanghai more than a century ago in 1919. It is a market leader in Asia (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$276 billion as of 30 June 2023.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia, AIA serves the holders of more than 41 million individual policies and 17 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock codes “1299” for HKD counter and “81299” for RMB counter with American Depositary Receipts (Level 1) traded on the over-the-counter market under the ticker symbol “AAGIY”.
Notes:
(1) Hong Kong SAR refers to the Hong Kong Special Administrative Region.
(2) Macau SAR refers to the Macau Special Administrative Region.