Tata AIG General Insurance Company - Insurer Innovation Award 2024

1. Tata AIG - Internal
CONFIDENTIAL DATA | not for circulation
T A T A A I G

2. Tata AIG - Internal
CONFIDENTIAL DATA | not for circulation
2
Name of the innovative Solution Differential Engagement for Health Customer Retention using AI
Innovation Descriptors Business Functionality
Origin of the innovation Management Suggestion
Impact Frequent
Does your Innovation - Transform an
existing market
Yes
I hereby declare that all the information provided in this nomination and all supporting documents are true.
Name of Applicants:
1. Snehith V Shivalli
2. Vaibhav V Shete
3. Yathish Maroli

3. Tata AIG - Internal
CONFIDENTIAL DATA | not for circulation
3
Tata AIG General Insurance Company
Limited is a general insurance
company in India, which commenced
operations on January 22, 2001. Under
its two main business verticals i.e.
Consumer Lines and Commercial Lines,
Tata AIG offers an extensive range of
General Insurance covers that cater to
various individual and business
insurance needs.
The products range from Home
insurance, Motor Insurance, Travel
Insurance, Health Insurance, Rural-
Agriculture Insurance etc. for
individuals under the Consumer Line
vertical, and Property & Business
Interruption insurance; D&O,
Professional and General Liability
Insurance; and special products like
Reps & Warranties and Environmental
Insurance under the Commercial Lines
vertical.
 Standardized Customer Interactions
 Finely-tune risk segments
 Heightened Dissatisfaction
 Surge in Policy Discontinuations
 Paradigm Shift Towards Data-
Driven and AI/ML Strategies
 Ensuring Resilience and
Competitiveness in Industry
 Traditional health insurance practices
suffer from standardized customer
interactions and possible inaccurate
risk evaluations, leading to
heightened dissatisfaction and
increased policy discontinuations.
 These shortcomings underscore the
need for innovative solutions that
can accurately assess customer risk
and enhance engagement strategies
to improve retention rates.
Challenges
Addressed
Problem
statement

4. Tata AIG - Internal
CONFIDENTIAL DATA | not for circulation
4
Technical
Innovation
Strategic
Innovation
Operational
Innovation
▪ Precise Dynamic AI Model
▪ Comprehensive Data Integration
▪ Bias Elimination Mechanism
▪ Personalized Engagement Strategies
▪ Market Timing Alignment
▪ Long-term Industry Transformation
▪ Data Cleansing Protocols
▪ Real-time Monitoring Systems
▪ Feedback Loop Integration
Who are our high-risk
customers?
Who are low-risk but unlikely to
continue with TAGIC?
Who are high potential
customers for upsell?
Innovation Focus Data-Driven
Strategy
Strategic Timing Operational
Excellence
 Leveraging artificial
intelligence (AI) to
drive transformative
change
 Project centers on
developing a dynamic
AI model for risk
assessment and loyalty
assessment
 Integrating extensive
datasets encompassing
customer details, past
claims, and
demographics
 Project ensures a
nuanced understanding
of risk factors
 Aligning with the
evolving landscape,
particularly the surge in
the health insurance
market during the
pandemic
 Project strategically
times its
implementation to
capitalize on emerging
opportunities
 Robust data cleansing
protocols, real-time
monitoring systems,
and feedback loop
integration enhance
operational efficiency
and effectiveness
 Fostering a culture of
continuous learning
and adaptation for
ongoing optimization
and refinement of
strategies
Approach
Differential Customer
Engagement

5. Tata AIG - Internal
CONFIDENTIAL DATA | not for circulation
Policy Data
Customer Data
Claims Data
Machine Learning
Claim Propensity
Model
Renewal Propensity
Model
HRLC
HRMC
Customer
Segments
HRHC
MRLC
MRMC
MRHC
LRLC
LRMC
LRHC
Increase Retention of
Desirable Customers
(Low Renewal Low
Risk)
Sustain a Profitable
Portfolio with a Strong
LR and Optimal
Retention
Engagement Strategy
- Strategy Executed
through Call Center
and Campaigns
Producer Data
LC-Low Claim
MC-Medium Claim
HC- High Claim
LR-Low Renewal
MR-Medium Renewal
HR- High Renewal

6. Tata AIG - Internal
CONFIDENTIAL DATA | not for circulation
73%
81%
65%
70%
75%
80%
85%
Pre Project Current
HRLC
46%
50%
44%
46%
48%
50%
52%
Pre Project Current
LRLC
81%
82%
86%
78%
80%
82%
84%
86%
88%
Jan'24 Feb'24 Mar'24
HRLC
55%
57%
59%
52%
54%
56%
58%
60%
Jan'24 Feb'24 Mar'24
LRLC
HRLC strategy segment from pre to post
• 8% increase in conversion
LRLC strategy segment from pre to post
• 4% increase in conversion
Recent 3 months Recent 3 months
The Revenue growth attributed to this project is ~ 28 INR Crores (Jul23 – Mar24).

7. Tata AIG - Internal
CONFIDENTIAL DATA | not for circulation
7
MITIGATIONS
CHALLENGES BENEFITS
 Increased Retention Rates: Implementation of risk-based
engagement led to a 6% increase in retention rates, particularly
among low-risk customers
 Revenue Growth: Achieved incremental revenue of INR 28Crores
through improved retention rates
 Enhanced Customer Satisfaction: Personalized engagement
strategies tailored to individual risk profiles improve customer
satisfaction levels.
 Adoption of innovative AI-driven strategies positions the company as
a leader in the health insurance sector, attracting customers seeking
personalized solutions
 Leveraging extensive data sets for risk assessment provides valuable
insights into customer behavior, informing future product
development and marketing strategies.
 Operational Efficiency: Implementation of robust data cleansing
protocols, real-time monitoring systems, and feedback loop
integration enhanced operational efficiency and effectiveness.
1. Implemented robust data cleansing protocols
to rectify inconsistencies and regularly validate
2. Incorporated fairness constraints or bias
detection algorithms. Regularly audit the
model for biases and adjust as necessary to
ensure fair outcomes
3. Conducted thorough system compatibility tests
and pilot implementations before full
deployment. Collaborated closely with IT
teams to address integration challenges and
ensure smooth transition
4. Staying abreast of industry trends and
regulatory updates through continuous market
monitoring. Maintained flexibility in the
project plan to accommodate changes and
pivot strategies as needed
1. Data Quality Issues: Inconsistencies and
inaccuracies in the data impacts the accuracy
of the AI model.
2. Algorithmic Bias: The AI model may
unintentionally perpetuate biases present in
the training data, leading to unfair risk
assessments.
3. Integration Complexity: Integrating the AI
model seamlessly into existing systems and
processes without causing disruptions.
4. Market Dynamics: Adapting to the evolving
landscape of the health insurance industry,
including changing regulations and customer
preferences.

8. Tata AIG - Internal
CONFIDENTIAL DATA | not for circulation
8
Continuous Improvement: Implementing a culture
of continuous improvement by regularly refining the
AI model and personalized engagement strategies
based on feedback and insights gathered from
customer interactions
Expansion and Scale: Scaling the project to
encompass a broader customer base and
extending its application to other lines of
business within the company, such as Pvt Car
and 2 wheeler insurance.
Market Differentiation: Continuously innovating and
differentiating the company's offerings to maintain a
competitive edge in the market and further solidify its
position as a leader in the health insurance sector.
Partnerships and Collaborations: Forming
strategic partnerships with technology
providers, data analytics firms, and industry
experts to leverage cutting-edge technologies
and insights, further enhancing the project's
capabilities.
The Revenue growth at Tata AIG due to this project alone until the FY2026 has been projected to be close to INR 85 Crores.

9. Tata AIG - Internal
CONFIDENTIAL DATA | not for circulation
9