The document discusses ways to reduce the number of Return To Origin (RTO) cases for an insurance company, which currently stands at 5% of total policies issued. It analyzes RTO data from April 2016 to January 2017 to identify key reasons for RTOs. Address incorrect/insufficient and consignee unavailable/shifted account for over 75% of RTOs. Recommendations include improving address capture and verification processes, using multiple delivery partners, email/SMS notifications, and redesigning forms to reduce data entry errors. Implementing these changes could help reduce the RTO rate to the target of 2.5%.

1. T H E AD D R E S S AN D D E L I V E RY
C H AL L E N G E
IMPROVING THE DELIVERY
EFFICIENCY OF POLICY BONDS

2. 2
OBJECTIVE
The study aims to reduce the number of RTOs which currently
stands at 5% of the total policies issued for the period April
2016 to January 2017 to 2.5% in order to increase operational
efficiency and customer satisfaction.

3. Define
Measure
Analyse
Improve
Control
Recommendations
PROCESS DEPLOYED: DMAIC
3

4. SUPPORTACTIVITIES
PRIMARY ACTIVITIES
Firm Infrastructure
Procurement : Banc assurance and agency model
Human Resource Management: Sales People, Employees, CRM team
Technology: Softwares like life Asia, omnidocs , inward module and other business
intelligence tools
Inbound
Logistics
1.Forms from
R.O/B.O
2. Docs
uploaded in
omni
Operations:
1.Check forms
2.Verification
3.Data
validation
4.Quality
control
Outbound
Logistics
1. Issued
policy for
printing and
dispatch
where key
players are
India Post and
printing
vendors
Marketing &
Sales
• Advertising
• Branding
• Sales
support
Services:
1.Training
employees
2. CRM
3.Call cent
re
VALUE CHAIN
4

5. CoffeeMug
COLLECTION of premium
and documents
JOURNEY OF A PROPOSAL FORMBANK
Document
DATA ENTRY
SCANNING
ATSUDLIFEBRANCHATHEADQUARTERS
RTS TPA
LIFE ASIA
CROWN
(DOCUMENT
MGMT)
Physical documents with vendor
(post issuance)
Non-
STP
STP
fail
pass
Manual
U/W
Issuance
Decline
Accepted
Std
rate
Rate
up
Issuance
Submitted
Requirement
Med
Non-
med
U/W
Print &
dispatch
QC
Scrutin
y
decisio
n
yes
No
OMNIFLO
W
5
Form
Inward
DE/QC
(rule
engine)
scrutiny

6. CoffeeMug
DISPATCH PROCESS FLOW
IT sends XML
daily to vendor
H.OVENDORCOURIER/HEADOFFICE
OperationsIntimate NB
E-policy
Check w/c
calling
status
RTO
No
Details uploaded in
inward module to
track
Print QC
DE error
yes
No
Undelivered cases/
lodge complaint with
courier
6
Print
Send to
courier
Policy
delive
ry
Are
delivery
details
updated
No
Delivery screenshots
uploaded in omni
No
yes
yes
Send back to vendor
and weekly report
shared to NB
Stored for 6 months
and then destroyed
NB will
share data
with CRM
team
RTO report
sent to ZCC
for calling
Custo
mer
reacha
ble
Re-dispatch or
ask for
address proof
CC shares
report on
weekly basis
RO/BO
No
yes
yes
No details
Fraud Team

7. 7
Define Measure Analyse Improve Control
Zones
Issuance
numbers % calc RTO %
RTO in
numbers
North 17597 22% 8.39% 1476
(highest
RTO)
East 17460 21% 3.80% 663
West 19680 24% 3.47% 683
(highest
Issuance)
South 12699 16% 3.55% 451
Central 14199 17% 4.66% 662
Total 81635 100% 3935 RTO =5%
Description Apr'16 May'16 Jun'16 Jul'16 Aug’16 Sept'16 Oct'16 Nov'16 Dec'16 Jan'17 Total
TOTAL(ISSUANCE
COUNT) 2138 5676 8137 6487 7607 13335 6125 10313 12987 8830 81635
TOTAL(RTO COUNT) 94 286 453 318 425 644 305 490 565 355 3935
RTO COUNT % 4% 5% 6% 5% 6% 5% 5% 5% 4% 4% 5%
TOTAL(CRM) 97 235 343 218 262 352 137 177 82 8 1911
CRM COUNT % 5% 4% 4% 3% 3% 3% 2% 2% 1% 0% 2%
Problem Statement: Ways to reduce number of RTOs the company receives in order to increase
operational efficiency and customer satisfaction.
0%
1%
2%
3%
4%
5%
6%
RTO COUNT %
CRM COUNT %

8. total no of address
incorrect= 2043
total no of address
insufficient= 497
Zones % of address Incorrect count Zones % of address Insufficient count
North 41% 847 North 39% 195
South 9% 187 South 8% 40
East 18% 366 East 21% 104
West 15% 311 West 15% 73
Central 16% 332 Central 17% 85
total no of consignee not
available= 1052
total no of consignee
shifted= 343
Zones % of address Incorrect count Zones % of address Incorrect count
North 37% 394 North 12% 40
South 12% 126 South 29% 98
East 15% 153 East 12% 41
West 19% 205 West 27% 94
Central 17% 174 Central 20% 70
NET RTO= 2429
51.92%
26.73%
12.63%
8.72%
Address
Incorrect
Consignee not
available
Address
Insufficient
Consignee
shifted
GROSS RTO=3935
48%
27%
17%
9%
Address
Incorrect
Consignee not
available
Address
Insufficient
Consignee
Shifted8
Define Measure Analyse Improve Control

9. Region
No. Of
RTO %
Rural 660 17%
Semi
Urban 1522 39%
Urban 1753 45%
Type No. Of RTO %
Tier 1 664 38%
Tier 2 1089 62%
9
Data taken from April’16 to Jan’17
Issuance and RTO
Region
Count of
Issuance %
Rural 17576 22%
Urban 64059 78%
Total 81635 100%
Define Measure Analyse Improve Control
RTO Reasons
Count of bounced
mail
Address Incorrect 193
Address Insufficient 164
Consignee not
available 158
Consignee Shifted 34
Grand Total 549
Zones Count of bounced mail
Central 90
East 95
North 207
South 58
West 99
Grand Total 549
Region
Count of bounced
mail
Rural 113
Semi-Urban 201
TIER 1 83
TIER 2 152
Grand Total 549
Data taken from Oct’16 to Jan’17
Bounced e-mail
Particulars
Count of
RTO
Gross
Count of
bounced
mail
Percenta
ge
Address
Incorrect 548 193 35%
Address
Insufficient 491 164 30%
Consignee
not
available 547 158 29%
Consignee
Shifted 129 34 6%
Grand Total 1715 549 32%

10. 10
Define Measure Analyse Improve Control

11. 11
Define Measure Analyse Improve Control

12. Andh
ra
Prad
esh
Assa
m
Bihar
Chatt
isgar
h
Delhi Goa
Gujar
at
Hary
ana
Jhark
hand
Karn
ataka
Keral
a
M.P
Mah
arash
tra
Meg
halay
a
Oriss
a
punja
b
Rajas
than
Tamil
Nadu
u.p
uttra
khan
d
West
Beng
al
Address Incorrect 93 20 72 41 76 7 59 37 129 33 20 162 304 5 19 155 70 41 541 38 121
Address Insufficient 20 3 20 13 17 1 18 20 23 9 3 40 72 1 9 42 14 8 106 10 48
Consignee not available 52 7 22 13 140 8 32 12 47 17 22 83 197 0 14 55 46 35 173 14 63
Consignee Shifted 23 4 1 5 8 1 27 0 10 29 9 31 93 0 10 3 7 37 29 0 16
0
100
200
300
400
500
600
Countofreasons
State wise RTO reasons
12
Define Measure Analyse Improve Control

13. 13
Rank
by POP State
Rural/Urban
ratio
Populati
on (in cr)
Rural
custom
ers
Urban
Custom
ers
Urban/Rural
ratio
1
Uttar Pradesh
3.5
20 crores
244 668 2.7
2
Maharashtra
1.2
11 crores
58 580 10.0
4
West Bengal
2.1
9 crores
36 210 5.8
5
Madhya
Pradesh 2.6
7 crores
84 232 2.8
14
Jharkhand
3.2
3 crores
22 184 8.4
16
Punjab
1.7
2.7
crores 80 141 1.8
State Count of Pin Code %
Uttar Pradesh 912 23%
Maharashtra 638 16%
Madhya Pradesh 316 8%
West Bengal 246 6%
Punjab 221 6%
Jharkhand 206 5%
Total 2539 65%
Define Measure Analyse Improve Control

14. RTO state wise
Semi-Urban
Rural
14
Semi-Urban
Rural Urban

15. Define Measure Analyse Improve Control
DE/QC VENDOR
COURIER
R.O/B.ONB TEAM
CUSTOME
R SERVICE
TEAM
Gross
RTO
Net
RTO
Interactions in Dispatch process
E-
mail
IT(XML)
SUD SUD
15
Establishing
contact-
ability
Tackling
addressee issue

16. 5-WHYS ANALYSIS
16
Address
DE
QC

17. FISHBONE DIAGRAM
KYC collected for
permanent
address
Manual entry
increases chances
of error
52% CASES
Incomplete data,
like missing Pin code
etc
Intimation from
Indian Post gets
delayed
KYC not
checked
Increase in RTO
No proof of
mailing address
Incorrect DE Lack of digitization
leading to data
discrepancies
No QC on KYC
Indian Post system
flaws
Ineffective form
design
EFFECTCAUSES
17
No bar code
No field for
alternate address
Lack of online
portal
No chat options
or complaint
tracking
options

18. Define Measure Analyse Improve Control
Branch Head Office Vendor
Scrutiny Data Entry DE/QC Print QC
Function/P
rocess
Failure
mode
Criticality
Risk
Priority
Number
Recomme
ndations
Severity
Occurrence
Detection
Incorrect
Address
18
3
4
2
3
3 5
2
1
53
5
15 40 36 30
Wrong entry
handed to vendor
Uploading
erroneous data
Inability to detect
error at the beginning
of the process
Training Sales
People
The most critical stage
of the process.
Training Sales people
The stage to identify
errors. Scope for
more improvement
Existing process
is fine
122015 6
4

19. INSIGHTS
• 40% of the people don’t have even the e-policy!
• 66% of RTO cases are from tier 2 cities and semi urban areas
• 678 cases of RTO confirmed affirmatively in welcome calling
• IN 69% of RTO cases, W/C wasn’t successful.
• 600 cases of RTO cases are from 44 pin codes.
• The process of data entry needs to be enriched at the entry level itself
• Few speed post acknowledgement are showing different delivery
locations
• The verification of an email address to check if it is deliverable or not.
Reasons
No of
cases
RTO calling
failed cases
% RTO
calling
failed
Address 2540 1951 77%
Addressee 1395 1110 80%
19
Particulars Number %
Total number of cases 3935
w/c calling not possible 2721 69%
Neither W/C nor RTO 2129 54%
w/c possible, but not RTO 908 23%
w/c and RTO both possible 306 8%
w/c not possible but RTO
possible 592 15%

20. Define Measure Analyse Improve Control
E-MAIL
PHONE/
SMS
Both inform sender in the event that
address/number is no longer valid – serves
as an early warning of change in contact
details.
20
https://tools.verifyemailaddress.io/
India Post to provide
SMS Service
To the CUSTOMER
intimating receipt of
the item at the
delivery Post Office.
To the SUD intimating
date and time of
delivery after the item
is delivered.
SUD will forward the
message to the
customer and a call
can be made
Based on the response
of the call, data can be
stored regarding
delivery status
Further complaint
request status can be
maintained through
INDIA POST

21. RECOMMENDATIONS
21
Address
•Bank passbook can be asked as an address proof to be used in case of alternate address delivery
•Capturing of exact address as mentioned in KYC document. Need to run QC on kyc as well
•Alternately we can ask for address proof submitted in bank in certain cases.
DE/Scrutiny
•.Sales people training
•In Life Asia we can ask for mandatory fill up of all 4 rows of addresses.
Logistics
•Multiple Shipping partners- using services like shiprocket, Zepo in conjugation with India post
•ZIPPR code (dominos model)
•We can send e-mail after dispatching the policy bond along with sms.
•Online Customer grievance system
Contact-
ability
•Mobile number verification by sending text .
•For email verification, we can look up to services like verify-email.org with subscription cost $25 for
10,000 mails per month www.verifyemailaddress.org, https://tools.verifyemailaddress.io

22. FORM DESIGN
• Need for Bar Code in place of Application Number so as to locate the appropriate template
to read the data.
• Separate data capture areas from other non relevant space, to optimize results, forms
should be designed with two colours to allow for the use of drop-out ink.
• Use of drop out ink like pastel yellow, orange etc for outline of boxes and other irrelevant
information like instructions etc to avoid confusion during scanning stage
• Asking for office address along with mailing address
• Asking for mailing address proof along with id number
• Asking for alternate or office phone number
• To capture rural addresses more correctly, in the mailing address column, we can provide
for:
22
House/Flat No/ Village:
Street/Area/Taluka:
Landmark/Post:
City/District:
Pin: State:
ID number:
ESSENTIALS of ADDRESSING
A correct address normally consists of :
Full Name of the Addressee
Number of House for the name of the house/ building),
name of the street / road.
Name of the locality
Name of the Delivery Post Office along with PIN Code
Name of the Post Town/City in Block Letters.]

23. RTO Grievance Portal
• Online chat option
• Marketing channel, wherein by resolving consumer concern we can sell
more policies or update customer about new ones, direct selling by utilizing
this touch point.
23

24. PRESENTED BY:
RACHNA SINGH
IIM RANCHI
24