Tata AIA enables credit card, debit card payments on WhatsApp
Policyholders can easily make renewal payments through credit, debit and net banking options, with a new increased limit of up to Rs 1 crore
image for illustrative purpose
Mumbai: Tata AIA Life Insurance Co. Ltd. (Tata AIA), a prominent player in India's life insurance sector, has unveiled a new payment service on its WhatsApp platform. This marks the first-ever launch of its kind within the industry. Previously limited to UPI-based transactions, Tata AIA consumers can now utilize a broader range of payment methods directly within WhatsApp. The service allows policyholders to easily make renewal payments through credit card, debit card, and net banking options, with a new increased limit of up to INR 1 crore. This launch is an outcome of Tata AIA's partnership with Meta and Infobip.
In June 2023, Tata AIA introduced an industry-first digital payment feature, providing instant premium payment options through WhatsApp and UPI-enabled payment avenues.
Currently, Tata AIA offers 27 services on WhatsApp for its consumers, including soft copies of policy documents, premium certificates, claims initiation and updates, renewal premium payments, contact information updates, service request tracking, NEFT updates, unit statements, and fund value updates. The company also features an interactive service bot named TASHA, providing 24/7 responses to consumer queries.
Sanjay Arora, Executive Vice President & Head of Operations of Tata AIA, expressed enthusiasm about this milestone, stating, "We are excited to set the trend in the industry with the introduction of new, consumer-centric payment options on WhatsApp. This innovative initiative is part of our ongoing commitment to providing consumers with convenience and ease through cutting-edge technologies. We will continue to offer solutions that help us deliver a superior customer experience."
Through this seamless payment process, consumers can conveniently pay renewal premiums within their familiar WhatsApp interface, enjoying enhanced flexibility. Payments can be completed quickly, usually within a minute, with immediate acknowledgement upon completion. The integration of credit card, debit card, and net banking options removes the necessity for using the Unified Payment Interface (UPI). WhatsApp boasts a user base of over 2 billion people in more than 180 countries, making it a widely used platform for communication.
To enhance convenience for existing consumers, Tata AIA has adopted an Analytics-driven, Decile-based approach to improve its renewal premium collections. The company has facilitated the renewal of premium collections via multiple digital modes and improved its language capabilities. Automated campaign management systems for WhatsApp and SMS services allow the company to analyze behaviour and adjust communication channels accordingly.
In FY23, Tata AIA ranked first in four of the five Persistency cohorts, including the 13th Month Persistency. The 13th Month persistence ratio (based on premium) of the Company improved from 87.76% in FY22 to 88.1% in FY23. Additionally, the Individual Death Claims Settlement ratio improved from 98.53% in FY22 to 99.01% in FY23. In Q1 FY24, the Company achieved industry-best Persistency performance across all five cohorts (13th, 25th, 37th, 49th, and 61st month).
The Persistence ratio measures the percentage of policy renewals each year, indicating consumers' confidence in the company. Experts often recommend checking this key metric when selecting a life insurance company. The 13th monthly persistency ratio is particularly crucial, representing the percentage of consumers renewing their policies one year after purchase. This metric is vital since unsatisfied consumers are unlikely to renew their policies. Evaluating insurers over various periods, including the 25th, 37th, 49th, and 61st month, provides insight into the quality of service and support over a more extended period.
