Insurance penetration in India is growing at a humongous pace, Insurance companies need to meet regulatory requirements while ensuring a hassle-free customer experience. In this blog, we will highlight how OneView by Perfios is used to satisfy insurance companies’ verification and due diligence requirements.
- Increasing insurance penetration in India and the current problems faced by the Insurance companies
- Top 4 use cases for OneView in General Insurance
- KYC Verification for General Insurance Customers
- Due Diligence before Disbursement
- Litigation Cases on or from Insurance Companies
- Lead Generation for Insurance Companies
Introduction
An unfortunate event can strike you anytime and catch you unaware, especially in this frightening world of war, and pandemics, disaster is just around the corner. Therefore, adequate financial protection is needed to compensate for irreparable damage to life or financial assets caused by unforeseen, catastrophic events.
The total insurance penetration in India was pegged at a mere 4.2% with non-life insurance at an abysmal 1%. Insurance companies and banks are pulling their socks up to exploit the enormous potential created by the huge non-life insurance gap in the country.
And Perfios OneView can be a pivotal tool in driving momentum in the insurance industry. Let’s first clarify what general insurance is. And then understand what support functions or use cases are provided or fulfilled by OneView in General Insurance
What is General Insurance
Insurance contracts that do not fall within the scope of life insurance are called general insurance. The life insurance contract is an authorized agreement whereby the insurer offers to pay the insured, upon payment of the premium, an assured sum upon the death of the insured. So, the General Insurance Contract is an authorized arrangement where, upon payment of the monthly premium, the insurer pays a sum of money to the insured, in the event of any tangible assets being damaged or being lost and untraceable, before the end of the policy period.
NBFCs and banks, for example, provide insurance underwriting services through which they guarantee payments in case of damage or financial losses and assume the financial risks associated with such guarantees. Let’s see how OneView in General Insurance can be utilized to satisfy the verification and due diligence requirements before providing underwriting services at the time of processing of claims as well as generate extensive leads to boost growth.
4 use cases for OneView in General Insurance
KYC Verification for General Insurance Customers
Let’s take the example of Keyman insurance. Keyman or Keyperson insurance is an insurance policy that a company purchases to compensate for the death of an individual such as the owner, CEO, CBO, or any other executive or individual whose death negatively affects the operations of the business or whose death spells doom for the future of the business.
The individual must be critical to the business of the organization. The Keyman insurance is intended to provide a financial cushion to businesses so they can cover the cost of searching for, hiring, and training replacements for the deceased. If the company believes it cannot continue to operate, it can use the amount to pay off debts, distribute funds to investors, provide severance benefits to employees, and shut down the business in an orderly way.
Management Information is available with OneView it contains:
- A detailed list of all authorized signatories composing the Management Board and a list of individuals who have held top management positions in the company previously. Banks or insurance companies can verify if the entity’s top executive, owner, CEO and CBO are genuinely who they say they are.
- The Management Information tab of OneView shows the entire management structure and the key individuals who make up the cream layer of the organization along with their position. In this way, it helps confirm that the key individuals for which a company is seeking compensation in the event of their death or any circumstance that causes them to be unable to continue in their current roles are truly the key individuals pivotal to the organization along with their role determined through independent investigation by OneView.
- It provides the ages of the key individuals that may affect the insurance premium.
- If a small business is seeking insurance for its employees, it may state how many employees the firm has. You can view employee records that show the number of employees for each month for the current fiscal year. The company’s claim about how many employees they have can be verified and validated by the employee records discovered by the OneView software.
- In addition, many insurance providers require financial statements. By obtaining the complete financial statements from OneView, you can verify the authenticity and accuracy of the statements provided by the entity.
Due Diligence before Disbursement
OneView is the repository of information of around 2.7 crore corporate and non-corporate entities. It can be used by the insurance company to verify the legitimacy of the policy applied. Profile, legal name, constitution, and management details, among others, can be easily obtained and are readily discernible qualitative data, whose proven accuracy lends credibility to the organization.
Accordingly, the insurance company can analyze the financial statements of the company to assess the creditworthiness of the organization and the scale of the organization in terms of revenue and profits, and accordingly, the appropriate compensation can be ascertained to be given if the aforementioned event, as specified by the contract occurs.
Also, insurers can review the credit ratings assigned to an organization based on whether the company has paid its obligations or not, or how it has handled its debt payments. Additionally, there is a section dedicated to defaults, which contains all the debt repayments that the company has defaulted on. All of these factors play a role in determining the premium rate and contract terms.
With OneView, insurance companies and banks can also verify the authenticity of non-financial information, such as employee strength, management information, principal products, etc. A company that is managed by preeminent and experienced individuals, who are well-known for their expertise and astute management, provides further credibility to the organization and this pertinent information can be viewed in the management tab.
The insurance premium may also be determined by the nature of the product. The insurance premium would be higher if the product is highly combustible and there is a possibility of the factory catching fire as a result of the combustible materials of the products. Additionally, OneView provides the GST HSN/SAC codes along with the descriptions of the products, so you can validate the products the company claims to be manufacturing with those listed on the platform.
The Alerts section is one of the most important parts of OneView for insurance companies, as it includes over 80 negative screening alerts covering regulatory, statutory, banking defaults, auditor comments, credit rating changes, and other proprietary alerts. To detect any attempt to make exaggerated claims or to process claims fraudulently, these factors are taken into consideration.
OneView allows you to retrieve the full spectrum of information about the policy applicant, thus granting you access to the paraphernalia of the organization without hindrance.
Litigation Cases on or from Insurance Companies
Many companies buy insurance policies in order to gain access to the full value of the asset by deliberately creating conditions under which the event will occur. Similarly, a company buying a fire insurance policy with diminishing profits and asset values could deliberately cause a fire in order to receive the predetermined and full amount of the factory. Former insurance companies may appeal against the company for this fraud.
Furthermore, there may be cases of default, or fraud filed against the company that calls for a further review during the processing of claims. OneView’s litigation BI tool gathers, aggregates, and consolidates all case records in the Indian Judicial system in one database. In this way, you can retrieve all the cases filed by or against an entity with a clear breakdown of pending and disposed cases. The details may reveal the true intentions of the applicant and whether he or she is actually responsible for the occurrence that led to the payment of the claim amount.
The Litigation BI tool also includes business analytics which can reveal information such as the city where the majority of the cases originate from, so more legal personnel can be provided to handle the overload of cases.
Similarly, you can identify the lawyer who has been losing the most cases for the company and take appropriate measures to either raise this up with the lawyer or seek out a replacement. Through litigation analytics, an insurance company can accelerate the claim process, prevent fraud, win more cases, and thus prevent losses due to exorbitant compensation resulting from lost cases, thereby increasing revenue.
Lead Generation for Insurance Companies
What if an insurance company or bank wanted to sell their health insurance policies to companies with more than 500 employees. Suppose the insurance companies want to target companies with a turnover of more than 200 crores. In a similar vein, an insurance company may want to offer insurance policies to companies with a particular credit rating. OneView’s Lead Generation possesses comprehensive coverage of around 27 million corporate and non-corporate entities.
Using the Lead Generation tab, you can leverage this extensive, humongous pool of information to extract relevant leads. You can select filters spread across different groups such as Profile, Location, Industry, Principal products and services, Financials, Charges, Employee Strength, and Ratings, condense your search to a specific set of customers, and glean relevant data.
Conclusion
OneView is a bespoke solution developed by Perfios on top of a comprehensive compilation of use cases relevant to General Insurance. OneView with its extensive and comprehensive features proves to be an indispensable tool for non-life insurance companies. Perfios invites you to explore this gem of technology, OneView in General Insurance cases.
