Reworking its entire distribution model in the wake of Covid-19-induced lockdown, Max Life Insurance has embarked on a ‘Mission Possible’ project that has put the focus on digitising the entire sales process, said a top official.
Over the last four weeks since the lockdown announcement, the private life insurer has trained as many as 10,000 agents and 25,000 bank sellers on the digital solutions necessary for product sales, Prashant Tripathy, Managing Director and CEO, Max Life Insurance, told BusinessLine.
After the lockdown, Max Life has written more than 25,000 protection policies using the digital solutions, including alternative telephone medical underwriting. Even after the ₹1,560-crore equity deal that will see Axis Bank getting 30 per cent shareholding in Max Life, the private life insurer will strive to enhance the share of ‘own channel’ in the company’s overall revenues, he said.
As of March-end, the company’s ‘own channel’ (agency force, digital, employed workforce) accounted for 33 per cent of overall sales revenues. Nearlytwo-thirds come from bancassurance partnerships (Axis Bank, Lakshmi Vilas Bank).
“We have been intentionally trying to increase the share of our ‘own channel’ in recent yearly. We have been growing the share of ‘own channel’, and this has been growing faster than partnership channels. We want to remain balanced and aspiring to get 35 to 40 per cent from ‘own channel’. There is a value in being a multi-channel player. Worldwide those insurers with strong ‘own channel’ are the most valued.
While we will get a foundation and platform to continue to grow with Axis Bank, we also want to have beyond of Axis a strong channel. Our own channels are superior as it gives flexibility around multiple qualitative outcomes of persistency, mortality, ability to drive product mix, and ability to sell protection products,” said Tripathy.
Brick and mortar
Although Max Life Insurance has embraced digital sales in a big way in the last one month to become predominantly a digital player, it does not mean that it will let go the traditional brick and mortar structures in the post Covid-19 world.
“My view is that brick and mortar will be required. This complete digital focus is only an interim solution due to the lockdown. We will get into a hybrid model in the next two years with a good dosage of digital. I believe that digital can’t replace 100 per cent of the physical infrastructure that we have built over the years. We have not taken a call as yet on how brick and mortar offices will work. We still continue to believe that in few months time things will start to open up and we will return to earlier growth path,” he said.
Asked if Max Life Insurancewill now take a shot at the top three league now that Axis Bank has become a promoter and JV partner, Tripathy said Max Life is not really in the game to become No 1 player and is well placed in the fourth position. “Going from No 4 to No 3 is an aspiration. But Max Life is not in any mad rush to capture market share. More than achieving volume growth, we aspire to build a comprehensive business with greater employee, shareholder, and customer outcomes,” he said.