About
Magma-HDI launched a new operations strategy in FY22 to enhance customer satisfaction. The Vision for the same was created Citius-Altius-Fortius i.e., Faster-Higher-Stronger Together. Many projects were launched under this banner.
Innovation presentation
Under this initiative, the customer was kept into the center and all issues related to customer were deliberated in detail along with the issue fixation for this customer to enhancing customer satisfaction and create a WOW factor for customers. Extensive Market research was done along with competition benchmarking.
The projects were categorized in the following buckets:
1. Digitization
2. Process Re-engineering
3. Process Re-design
The output measurement of these projects is being done through Net Promoter Score / Google rating in the company.
During the mapping exercise, we uncovered significant gaps that needed to be addressed to elevate the customer experience:
Policy Issuance:
• Long turnaround time (TAT) for policy document receipt by customers
• Dependence on physical paper movement for 10% of the portfolio
• Delays in policy issuance caused by manual loaders for 40% of the portfolio
• Limited avenues for premium payment, with dependency on banking windows
• Low utilization of e-wallets, resulting in only 49% of total payments being made digitally
Service:
• Endorsements requiring physical movement of paper. All documents were submitted by Sales in hardcopy, scanned and uploaded by Branch Operations in system.
• High number of complaints due to delay in service request closure
• Lengthy IVR flow
• High TAT for customer service calls
• Inadequate self-service options
• All policies / endorsements were dispatched to the customer post printing them centrally.
• For payment of NCB recovery, customers either had to visit the branches or call customer care for payment. (TAT- T+2)
Claims Settlement:
• Extended TAT for cashless service and surveying process
• Manual assessment of claims
Renewal:
• Challenging policy renewal process
• Low customer contactability
• Dissatisfied customers due to multiple follow-ups
• 51% of payments were in physical cheque / cash deposition by the salesforce.
The above causes low persistency.
Uniqueness of the project
The company decided to identify solutions for explicit customer needs. The list of customer requisites was jotted down. Quality Function Deployment (QFD) and House of Quality (HOQ) are structured approaches for defining customer requirements and translating design specifications and product control characteristics into a planning matrix. In other words, using QFD allows the charting of customer wants and technical hows, which results in a better understanding of design relationships.
Quality Function Deployment (QFD) is used by evaluating below:
• Effectively communicate customer requirements and strategically prioritize efforts throughout the organization.
• Is a customer-driven process for planning products and services.
• Helps to identify important parameters to include in the design.
• Allows you to compare the design parameters with competitive products.
• Reduces the development time and is cost-effective.
The prioritization was done to usage of QFD model as per Annexure 1
Below Top 10 projects were identified for deployed:
1. Customer Councial: Setting up a cross-functional team to address customer complaints. One of the initiatives of the team was to review the processes generating repeat complaints. Through this initiative, we identified and re-engineered 43 processes, resulting in a remarkable 33% drop in complaints. Process flow available in Annexure 1.
2. Learning Post: A structured mechanism to gather feedback from our employees to identify the causes that lead to adverse customer experience. In the virtual town halls conducted every month, 1500+ employees participated and gave their suggestions. 7 mega townhalls generated 12000+ responses out of which 214 issues/suggestions have been implemented. Process flow available in Annexure 2.
3. Robotics Process Automation (RPA): Business Excellence team used six sigma approach to evaluate avenues that need optimization by leveraging technology. Weekly departmental wise sessions were scheduled for process walkthroughs across the department and various processes were enlisted. The list was evaluated and scaled (0 to 5) basis criticality and scope of automation to obtain priority order. Key focus areas and identified gaps:
a. Database management & cleansing
b. Reporting
c. Handling emails
d. Regulatory Submissions
e. Policy issuance
KPI available in Annexure 3.
4. Auto IVR: Company launched auto IVR options for the customer. This enhanced self-service options for the customer. 5% of the calls received by the customer service call center are auto fulfilled with nil manual intervention on real time basis.
5. Vaahan Integration (data extraction from vehicle registration authorities): Integration has been done with Vaahan through third party vendor. Through this, Vehicle details will be auto fetched from Vaahan Site once agent enters registration number of the vehicle in agent portal. This has reduced data entry time up to 3 minutes with Zero errors. Along with considerable reduction of document requirement for policy issuance. The application will also help in minimizing fraud.
6. Behavioral Economics (BE): A team of 4 scientists from Vocatus (Germany) then came and trained the tele-sales team at Magma HDI, keeping customer behavior defined as per BE was the prime focus of the training. Under this initiative, the customers were divided into 5 categories:
a. Bargain Hunter
b. Risk Avoider
c. Price Accepter
d. Routine Buyer
e. Indifferent Buyer
Details available in Annexure 4.
7. Artificial Intelligence powered System:
a. Claim Genius (Auto-Claim Settlement): Magma HDI has launched an AI based external damage detection and severity assessment tool for private car own damage (OD) claims, which minimizes data entry time and increases efficiency. Flow diagram available in Annexure 5.
b. Aadhar Masking (Personal Identification (PID) Number): Customers were uploading photocopies of Aadhaar card as a KYC document to the company. As per regulations we cannot store Aadhaar numbers. Masking of this Aadhar cared has emerged as an issue as the same was getting uploaded from multiple touch points (customers, agents, brokers, web aggregators). The company has deployed software which will read all the documents uploaded in DMS, identify Aadhaar cards and will mask it. This process reached 96% accuracy in 6 months of deployment.
8. Renewal Propensity: A project team was created to identify levers to enhance the renewal percentage. Various rounds of discussion were done to identify the comprehensive list of variables e.g. Channel, Premium amount, Geographical location, Salary bracket of the customer, Gender, Year of renewal, Service feedback of the customer, Number of claims registered, Vehicle type/Class, Make model, Profession of the customer, sourcing location, Age of vehicle etc.
A Regression equation was created and variables impacting renewal positively were identified. Those were Year of renewal, Service experience of the customer, and Premium of Insurance. Revitalization strategy for renewal available in Annexure 6.
9. Chatbot & WhatsApp: Chatbot - MIRA (Magma’s Interactive Real-Time Assistant) has been launched on companies’ website and WhatsApp. This is a self-service platform for customers. This chat bot has the following capabilities:
a. Buy and renew the policy
b. Download policy copy
c. Claim Intimation and status track
d. Endorsements
e. Addressal of other queries
10. Mobile Applications:
a. DJP/RTM Application: This application helps the sales to plan daily journeys of FE’s (Field executives). This includes business meeting data, overall business-related data along with geolocation of the FE’s during the day. This application helps supervisors with a view of each of their FE performance daily.
b. Self-Survey App: It connects both Motor & Non-Motor customers as well as vendors for registering and getting the further details of the claim on the app. Survey process has been simplified through video streaming to make it completely touchless & efficient with no necessity of moving physical documents. Further, with the app and video streaming facility, the Company is settling ~60% Motor OD claims without any involvement of a physical visit.
