With the world going remote there has been a forced digital shift in consumer behavior and the Insurance sector in India has also responded with IRDAI relaxing KYC regulations.
Insurance Regulatory and Development Authority of India (IRDAI), vide Gazette notiﬁcation dated April 23, 2020, has published a list of Insurance companies that can undertake e-KYC or paperless KYC in the coming days allowing the insurance companies to avail Aadhaar-based authentication services of the Unique Identification Authority of India (UIDAI) to fulfill the Know Your Customer (KYC) norms.
With the relaxed KYC compliance regulations, Insurance companies are gearing up to overhaul their KYC operations from contact or paper-based approach to a completely remote and tech-based approach.
The traditional insurance KYC has a huge list of challenges from operations to compliance:-
- The offline process of document collection brings the threat of misuse of documents and increased risk of information leakage due to physical records involved at every stage of KYC.
- The turnaround time (TAT) and the cost of processing each file increases due to the physical verifications. It also hampers the overall customer experience and increases the chances of human error.
- Any error in authentication documents further leads to higher KYC drop-offs owing to repeat physical visits.
- In tier 2 and tier 3 cities, people still rely on field agents for investing in insurance. The Pre Insurance Insurance verification process is often broken and non-compliant to IRDAI norm. As the field Agent only focuses on selling, the procedure of reading out policy terms and conditions are often ignored or not recorded
- Insurance Field agents often provide their mobile numbers instead of customer contact, negating the policy readout compliance
How can Ameyo’s Video-based KYC approach revive KYC operations for the Insurance Sector
- Decrease KYC drop off at each stage of Customer onboarding using omnichannel engagement
- Video enabled KYC that runs even on low Internet bandwidths (60Kbps)
- Enabling 100% IRDAI compliance with video-assisted Pre Insurance verification
- Ameyo’s paperless and contactless process of Video-based KYC for Insurance would result in reducing costs by 90% as compared to the Physical KYC processes
- Enterprise-Grade Security with AES 256 Encryption & ISO 27001 to reduce the chances of fraudulence.
Considering the present situation, Video KYC for insurance is allowed at an opportune time by the regulatory bodies to make the on-boarding process digital, when meeting customers is almost impossible. Insurance companies are looking for solutions to enhance customer convenience and improve business efficiency in these times of economic turbulency and Ameyo is here to help.