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The Indian life insurance industry may soon have loyalty programmes if ICICI Prudential Life Insurance Company has its way.
Loyalty programmes are one among the five new concepts the company has received approvals for under the IRDAI’s regulatory sandbox initiative. Of the seven concepts approved from the insurance industry, five have been bagged by ICICI Pru Life.
The sandbox method lets insurers launch and test a product with a select group of customers for six months.
“We have received concept approval for five out of the seven applications we made. This constructive step of the regulator to give clearance to proposals submitted under the sandbox initiative will not only benefit customers but also promote growth of the life insurance industry,” Madhu Burugupalli, Head - Products, ICICI Pru Life told BusinessLine .
“Through the five proposals accepted, we look forward to providing customers with innovative solutions that suit their needs,” he added.
The five concepts of ICICI Pru Life that have been approved by the Insurance Regulatory and Development Authority under the second tranche of regulatory sandbox approvals are health savings,loyalty programme,outpatient health cover,disease management and dynamic term cover.
The loyalty programme will focus on enhancing customer engagement on an overall basis and not at a product level, Burugupalli said.
“There has never been a rewards or loyalty programme for customers in the life insurance industry. What is being contemplated is not for persistency. It could, for example, be rewarding customers for using self-help modes like digital or for interacting with the company without coming to branches,” he said.
While the health savings concept will be focussed on providing composite offerings that provide health protection and at the same time build savings for health-related expenses, dynamic term cover would seek to provide flexibility and convenience so that a customer can choose when she wants to start a term cover and how long she would want its.
Health rewards
The concept of disease management will be for recognising customers who show improvement in health or maintain their health — they will be rewarded for maintaining health (eg, diabetes condition). “This will be a win-win for both customers and companies. While customers will maintain health, for companies, it will be a great way for managing risk.”
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