Looking For Better Insurance Onboarding? Read This!

10th October 2023

Perfios cloud-based Video Pre-Issuance Verification Call (PIVC) solution collates all KYC information and enables quick verification of application details via video, saving costs and simplifying onboarding.


Amit Kelkar, the regional sales head of a frontline insurance company in India, has long been battling with factors well beyond his control. For the past several quarters, his region has come up top in the tally of insurance fraud cases, severely hitting the business bottom line. Moreover, poor customer experience due to inaccurate entry of KYC data and long verification processes has led Amit to bleed revenue as operational costs inflated consistently.

However, Amit's challenges are far from unique. Instead, they are shared by most of the insurance industry insiders across India at present, albeit disproportionately.

Onboarding Challenges for Insurers or Opportunities?

In its Insurance Fraud Survey 2023, Deloitte found that about 60% of businesses are experiencing a rapid surge in fraud in the Life and Health segments. Further, the Indian customers, a sizable chunk of whom are digital natives, are increasingly growing aspirational and demanding better BFSI experience delivery.

Hubspot reports that globally a staggering 80% of the customers are ready to pay a premium for a better experience, and the typical Indian customer is not an exception! In fact, a recent panel featuring top Indian insurance leaders revealed customer experience to be the key differentiator for businesses in the days ahead.

Opening Doors with Regulatory Actions

Considering such trends, the directive from the Insurance Regulatory and Development Authority of India (IRDAI) has sought to enable insurers and their customers alike. In September 2020, via this circular, the industry regulator encouraged the life and general insurance businesses to introduce Video-based Identification Processes (VBIP), for delivering a video-based KYC verification method for their customers.

The approach is similar to the Video In-Person Verification Process (VIPV) introduced by SEBI and the Customer Identification Process (V-CIP) mandated by the RBI the same year. Apparently, all of them aim to deliver a richer customer experience while minimizing the possibilities of fraud and ensuring that financial services are consumed only by genuine customers.

What Necessitated This Shift?

It became clear to the insurance regulator and companies that cost optimization, minimizing fraud, and delivering improved customer experience is impossible without addressing the existing inefficiencies of traditional KYC processes. These include:

Paper-based workflows that are slow and poorly integrated. It leads to redundancies and pushes up operational costs.

Complex and lengthy verification processes result in frustratingly low customer satisfaction scores and high drop-off rates.

Manually driven data entry and highly error-prone documentation systems. They pose significant data-security concerns and reputational risks for insurers.

What is a Video-based Identification Process (VBIP)?

VBIP is the part of the onboarding journey that includes a consent-based, real-time interaction conducted digitally by an insurance company representative with a prospective customer. Identity information and documents critical to policy issuance are fetched and verified during the process.

Typically, the process involves an audio-visual session where the company representative requests a prospective customer to display the ID proof and other relevant documentation on camera for verification. The representative can further ask questions related to policy details to confirm identity. Based on the outcome of this session, the policy is issued to the customer.

In industry parlance, this audio-visual session is known as a Video Pre-Issuance Verification Call or VPIVC.

What Are The Essentials of Conducting VBIP?

As part of the VBIP guidelines issued in September 2020, IRDAI has laid down how the Indian insurers should conduct the VBIP. Among other this, it puts on the businesses the following obligations:

● As part of the VBIP process, the VPIVC must be conducted with the customer's prior consent, and the recording of the transaction and activity logs must be stored in a safe location for future reference.

● The VPIVC must happen in real-time with rich video quality to establish the customer identity beyond doubt.

● The customer's location will be determined using geo-tagging to confirm presence within the Indian borders.

● The insurer must be able to capture a live photograph of the customer and match it with their Aadhaar.

● The insurer must be able to confirm that the customer appears live at the session and the interaction is not pre-recorded.

● The VPIVC application used must be highly secured and end-to-end encrypted. Further, the session must be triggered from the insurer's domain and not that of a third party.

Interestingly a 2023 research revealed 92% of Indian business leaders believe that immersive experience is a crucial customer retention tool. Optimal customer experience is one that is organically integrated into what customers are doing. Therefore for VBIP to be widely adopted and deliver its intended results, a VPIVC solution must be secured, compliant, and highly intuitive for the customers to use.

Cloud-based PIVC Solution by Perfios

Perfios cloud-based Video Pre-Issuance Verification Call (PIVC) solution is conceived to help Indian insurers ensure a customer-centric and compliant VBIP implementation. It is a cutting-edge product tailored per the IRDAI VBIP guidelines, bringing together Perfios leadership in AI-driven due diligence for Financial Institutions and Perfios ingenuity in real time-analysis and decisioning.

Like its other offerings, Perfios PIVC solution is built on ISO 27001 and other international data security standards. It quickly collates customers' personal, policy and medical information in one place, allowing an insurer to confirm the application details via video.

For insurers looking to implement VBIP, Perfios cloud based PIVC solution brings in a host of features, including:

SaaS Product: As an URL/browser-based solution for remote onboarding, Perfios PIVC stack has been built to be seamlessly accessible using a desktop or a mobile device. All that a customer needs is a stable internet connection.

Local Origin: Perfios PIVC solution sends the secured session link to the customer via email or SMS. The API call is triggered from the insurer's servers, requesting the customer to verify the policy details on video.

Consent Management: Perfios PIVC solution incorporates tools within the interaction environment allowing the customer to provide their full and informed consent easily. Further, the recording of the sessions and activity logs are stored securely in the cloud for future audits. The data can also be uploaded to the insurer's local servers.

User-friendly & Multilingual: Perfios PIVC solution is highly user-friendly, helping customers to go through the session through step-by-step instructions. Further, it supports multiple regional languages. Currently, the verification questionnaire is available in several major Indian languages, making it relevant for customers across the subcontinent.

Liveness Check: Perfios award-winning AI-based liveness check and face comparison algorithms match the face in the video with that on record and generate a liveness score making the PIVC tamper-proof and genuine.

Geo Tagging: Alongside AI-based liveness check, Perfios PIVC solution adds an extra layer of protection against fraud and falsification of KYC information. It can trace and tag the geo-location of the customer taking the PIVC in real-time to ensure the authenticity of the submission.

Analytics: Perfios PIVC solution, while simplifying the KYC process for the customers, also gathers information in real time for the insurers. Such insights allow insurance businesses to know better and serve their target audiences through informed product and policy decisions.

What are the benefits of Perfios Cloud-based PIVC Solution?

Due to such market-leading features, the PIVC solution by Perfios promises numerous business benefits for insurers. Some of them can be as compelling as:

Reduction in Onboarding Costs: As a cloud-based and end-to-end digital system, Perfios PIVC solution can complete the onboarding of insurance customers at a fraction of the cost of manual, paper-based methods.

Faster Turnaround Time: The automated verification of customer identity and documentation helps the insurer to complete the onboarding journey within minutes instead of days.

Improved Customer Satisfaction: Perfios PIVC solution eliminates the need for physical documents and complex verification processes. Consequently, the onboarding journeys are more straightforward and faster, delighting the customer who no longer has to wait for days for the policy issuance.

Fewer Drop-Offs: Using Perfios PIVC solution, insurers can also pitch to prospective customers who are hard-pressed for time. The fast and efficient onboarding process reduces the chances of customer drop-offs and cases of cart abandonment.

Robust Data Security: With Perfios PIVC solution, customer confidentiality is maintained using top-notch data security standards. Also, the solution is aligned with IRDA's guidelines and allows insurers to keep data locally on their servers.

We Would Love To Hear From You

Although formulated by IRDA in the wake of the COVID-induced disruptions, Video-based Identification Processes is an idea whose time has come for the Indian Insurance Industry. It takes the KYC processes of the Indian insurers at par with global standards and empowers the consumer like never before. Needless to say, amidst such positive development, the Indian insurance businesses are also slated to catch a remarkable windfall, making their processes safer, compliant, and geared to drive bottom-line growth.

As a Perfios company, we at Perfios always strive to make the insurance business in India customer-centric and profitable through our unmatched portfolio of intelligent solutions. We invite you to reach out to us through connect@perfios.com or WhatsApp. Our experts will be delighted to show you around and explain how such solutions can help you digitally transform and deliver as per the expectations of your valued customers.

About Perfios:

Perfios Software Solutions is India's largest SaaS-based B2B fintech software company enabling 900+ FIs to make informed decisions in real time. Headquartered in Bangalore, India, Perfios specializes in real-time credit decisioning, analytics, onboarding automation, due diligence, monitoring, litigation automation, and more.

Perfios' core data platform has been built to aggregate and analyze structured and unstructured data and provide vertical solutions combining consented and public data for the BFSI space catering to their stringent Scale Performance, Security, and other SLA requirements.

You can write to us at connect@perfios.com

For more Such information contact us @ https://solutions.perfios.com/request-for-demo

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