Working from home came with challenges. The lines between home and work are blurred. People don’t switch off from work, says Anup Rau, MD & CEO, Future Generali India Insurance
MUMBAI : A crisis also brings opportunities with it. Some general insurance companies used the coronavirus lockdown to reinvent their businesses and make them more efficient. In an interview for Mint’s Pivot or Perish series, Anup Rau, managing director and CEO of Future Generali India Insurance, explained how the company and the industry overcame challenges and are getting the business back on track using technology. Edited excerpts:
Tell us about your journey since the lockdown.
We had adopted work from home from 12 March, much before the government implemented the lockdown. Since we took the initiative early, we started shifting systems and infrastructure to people’s residences. We were fairly certain that covid-19 will not get resolved in a couple of weeks and were prepared for the long haul. Unfortunately, it turned out to be right.
When working remotely, we realized that we could do without the established physical infrastructure. We were able to maintain, actually improve, the quality of interaction with our customers, distributors and other stakeholders. The pandemic also forced us to cut down on unnecessary meetings and commute.
Once we adapted to the new way of working, our productivity came back by the end of the quarter. The organization grew by about 15% in this quarter compared to last year.
But working from home came with its challenges. The lines between home and work are blurred now. People don’t switch off from work. The next stage of maturity would be to allow people to switch off.
What were the challenges you faced during the lockdown?
The most challenging thing was to get our distribution to sell digitally. We have a substantial retail franchise, and people are used to selling face to face. Our distribution had to invest in digital assets and prospect digitally using tools like social media, WhatsApp, Zoom, Microsoft Teams, and so on. We supported them wherever we could with digital marketing, sales and processing tools.
Even harder was to convince people that the pandemic is here to stay. Many believed that things would get better in a couple of weeks, and we ’re willing to take a hit in the short term.
The second challenge was in supervision. Earlier, managers could call a meeting to talk to subordinates and do reviews. They could visit the branch and conduct reviews and audits. Moving these activities to a digital format means change and adaptation and learning new skills. Everyone hates change.
But there is one big positive that came out of the lockdown and remote working. In any company, the way an employee spoke and presented himself made a significant impression on how they are perceived to be performing. Now, people have resorted to data and information. There’s a lot more reference to data to look at performance and other aspects of the business.
Do you think recent startups in insurance were better equipped to deal with the lockdown?
Most of the recent players are small; so, too early to call. Some of the new players who have scaled up significantly are more traditional than digital in their approach and have built a classical, successful brick-and-mortar business model. For many others, it’s early days yet.
I don’t think we were at any disadvantage compared to the newer players. On the contrary, we had an advantage. We were able to leverage the digital ecosystem to enhance our brick-and-mortar presence and efficacy. Digital tools have helped magnify our strength, improve our operational efficiency and enhance the productivity of our sales and distribution channels.
Given the developments, will health insurance premiums rise?
The increase in premium would be in line with the health cost inflation. There won’t be any extraordinary rise due to the pandemic. The number of claims can get accentuated due to it. The higher claims liability, however, would be absorbed in the regular course of business. Let’s not forget that the pandemic has also forced people to take a closer look at their lifestyle and make healthier choices.
The treatment protocols have also started developing over time. Some of it involves rest and recuperation, hydroxychloroquine, remdesivir along with azithromycin and an antacid. In extreme cases, of course, hospitalization and intensive care are required. As protocols and their efficacy mature, patients would be treated at home than at the hospital in the future. I also believe that over time, some of the mystery and dread and trepidation around the virus will reduce.
A majority of health insurance claims are reimbursements, which involves a lot of paperwork. How are you managing those?
The company is doing reimbursements remotely. Everything has moved to the digital process—be it motor or health. To a large extent, we are giving the benefit of the doubt to customers wherever possible.
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