About Alok Rungta
A seasoned Chartered Accountant with over 25 years of experience, Alok Rungta, the CEO and MD of Future Generali India Life Insurance, has held executive positions in leading insurance companies across the Philippines, Hong Kong, and India in companies like AXA, Bharti AXA Life Insurance, and Birla Sun Life Insurance. Known for his astute strategic and servant leadership, he has been instrumental in transforming customer acquisition, engagement, sales innovation, and digital enablement operations at Future Generali India Life Insurance.
Rungta is a key contributor to healthcare management, financial planning, technology-driven transformation, and enhancing organizational and employee effectiveness. His sound knowledge of finance, accounts, and taxation helps him a lot in steering through challenging tasks. With a strong focus on fostering agility and accountability among stakeholders, he is committed to delivering tangible outcomes. His approach integrates customer-centric strategies, segment-focused marketing, and operational excellence through project management, ensuring impactful results and sustainable growth in diverse markets. An articulate speaker, he connects with his audience with alacrity and aplomb.
1. The life insurance landscape has been changing very fast. In that context, how do you envision Future Generali Life Insurance adapting to the rapidly evolving insurance landscape in India?
The life insurance landscape in India is undergoing a dramatic transformation, driven by changing consumer preferences, advancements in technology, and evolving regulatory frameworks. The market is projected to grow at an impressive 15% CAGR (IRDAI 2023), highlighting the significant opportunities and challenges ahead. In response to this dynamic environment, Future Generali is positioning itself as a digital-first insurer, leveraging cutting-edge technologies such as Generative AI, Machine Learning, and data analytics to enhance various facets of our business.
One key focus area is the integration of AI at the point of sale. By equipping our agents with AI-driven tools, we can empower them to provide personalized product recommendations that are highly relevant to individual customer needs, ensuring a more consultative and value-driven sales process. This not only enhances customer satisfaction but also improves conversion rates by offering tailored solutions in real-time.
Internally, we are developing a state-of-the-art, Generative AI-powered virtual assistant designed to handle employee queries. This virtual assistant will be available 24/7, providing instant responses, all while maintaining a high level of accuracy and consistency in information delivery.
These technological initiatives are not just about adopting new tools—they reflect Future Generali’s overarching strategy to deliver more personalized, transparent, and seamless insurance experiences. Our goal is to adapt to the rapidly evolving landscape, ensuring that we meet the diverse needs of India’s growing and increasingly tech-savvy population while maintaining the highest standards of service.
2. The high-interest rates have given the life business a new lease of life, boosting demand for savings products in particular. What are the key challenges faced by the life insurance sector in India today, and how is Future Generali addressing them?
High-interest rates have rejuvenated demand for savings-focused insurance products, with guaranteed return plans achieving a remarkable growth. However, the Indian life insurance industry still faces notable challenges:
1. Low penetration: At just 2%, insurance penetration in India lags significantly behind countries like China (4.5%)and South Korea (8.5%) (Swiss Re 2023).
2. Distribution inefficiencies: Tier-2 and Tier-3 cities continue to be underserved due to a shortage of agent networks and slower adoption of digital channels.
3. Complexity of products: Over 60% of potential customers perceive insurance products as overly complex, which hinders purchase decisions (EY Insurance Report 2023).
In response to these challenges, Future Generali has crafted a multi-faceted approach. We are simplifying our product offerings to make them more accessible and easier to understand for customers, addressing the complexity issue head-on. Furthermore, we are expanding our reach into underserved regions by forming strategic partnerships with ecosystem players who can help us extend our footprint. To enhance efficiency and better serve our diverse customer base, we have also heavily invested in digital tools for our agents, resulting in a notable >20% improvement in productivity. This combination of product innovation, strategic partnerships, and digital investment is empowering us to navigate these industry challenges more effectively.
3. IRDAI has envisioned Insurance for All by 2047. IRDAI is also planning to launch Bima Sugam next year. What are the challenges and opportunities you foresee?
The IRDAI’s vision of “Insurance for All” by 2047 is a transformative agenda that could redefine the life insurance landscape in India. However, achieving this ambitious goal requires addressing two critical barriers:
- Digital divide: While India has witnessed a surge in internet penetration, with over 80% of urban householdsconnected, rural India lags significantly, with nearly 50% of rural households lacking reliable internet access (IAMAI 2023). This divide limits the adoption of digital insurance solutions, particularly in regions where financial literacy is already low. Bridging this gap will require not only infrastructural investments but also targeted digital literacy programs to make insurance accessible to underserved communities.
- Trust deficit: Insurance remains one of the least trusted financial products in India, with only 33% of consumers perceiving insurers as reliable (EY Global Trust Index 2023). Mis-selling, opaque processes, and delayed claims are key contributors to this mistrust. Building customer confidence will necessitate a transparent ecosystem, timely claims settlement, and proactive communication at every stage of the insurance journey.
The planned Bima Sugam platform is poised to play a pivotal role in addressing these challenges. Designed as a unified marketplace, it could democratize access by bringing insurers, intermediaries, and customers under one digital roof. By offering features like policy comparison, instant issuance, and real-time claims tracking, it has the potential to foster transparency and customer empowerment. However, for Bima Sugam to succeed, it must ensure:
1. Last-mile connectivity: Partnering with telecom providers and fintech companies to make the platform accessible even in low-bandwidth regions.
2. Consumer education: Initiating campaigns to familiarize users with the platform, especially in Tier-2 and Tier-3 cities.
3. Integration with Aadhaar and UPI: Leveraging India’s robust digital public infrastructure to simplify KYC and payment processes.
By addressing these challenges strategically, IRDAI can turn its vision into a reality, not only increasing insurance penetration but also making it a trusted and integral part of India’s financial ecosystem.
4. With the advent of InsurTech and digital transformation, how is Future Generali leveraging technology to enhance customer experience and operational efficiency?
The rise of InsurTech has fundamentally transformed the insurance landscape, offering unprecedented opportunities for hyper-personalization and operational excellence. Future Generali has strategically harnessed this digital wave to enhance both customer experience and internal efficiency.
- AI-driven personalization: By leveraging behavioural data, Future Generali’s app provides tailored recommendations that resonate with individual customer preferences and needs. This approach not only enriches customer engagement but is also projected to significantly boost sales conversion rates, underscoring the potential of AI to drive business outcomes.
- SuperApp “Fortuna”: To streamline operations and empower the sales force, Future Generali has introduced Fortuna, a comprehensive SuperApp. This innovation consolidates functionalities that previously required navigating multiple applications, simplifying workflows and enhancing productivity for sales teams.
These initiatives demonstrate Future Generali’s commitment to staying at the forefront of technological advancements. By embedding global best practices into its operations, the company is positioning itself as a forward-thinking, customer-centric insurer, prepared to meet the evolving demands of the digital age.
5. With consumers becoming more health-conscious post-pandemic, has there been a shift in demand for specific life insurance products?
The pandemic has been a turning point in shaping consumer attitudes towards health and wellness, which in turn has impacted the life insurance market. In particular, there has been a notable shift toward products that offer greater health protection. Term insurance, once primarily viewed as a straightforward financial safety net, now accounts for significant portion of new business compared to prior to the pandemic, as consumers increasingly seek coverage that provides long-term financial security in addition to health-focused protections.
Alongside this, there has been a marked surge in demand for health-oriented riders, particularly critical illness riders, which have grown by 18% YoY. This growth is predominantly driven by millennials, who, more than any other demographic, are prioritizing their health and well-being and seeking insurance products that reflect these values.
In response to this heightened consumer awareness, companies are exploring innovative ways to integrate wellness and health benefits into traditional life insurance products. Features like teleconsultations, access to fitness apps, wellness-related incentives, and enhanced coverage options are becoming increasingly common.
This shift in consumer demand is a reflection of a larger transformation in how individuals view insurance—not just as a safety net in the event of death, but as a tool to help manage and protect overall health and well-being..
6. What role do you see personalized and flexible insurance products playing in the future of the industry?
Personalized and flexible insurance products are poised to reshape the industry, becoming the cornerstone of meeting evolving customer expectations. In an era where consumers demand more relevance and control, 72% of Indian customers are now willing to pay a premium for tailored solutions (Capgemini 2023). This indicates a significant opportunity for insurers to differentiate themselves through innovative offerings.
Future Generali’s modular product design exemplifies this shift. Our plan, for instance, enables customers to seamlessly adjust their coverage to align with key milestones such as marriage, parenthood, or career transitions.
Moreover, personalization extends beyond products to customer engagement, with insurers using digital platforms to offer real-time policy modifications, claims tracking, and wellness incentives, fostering an interactive relationship with policyholders. The future of life insurance lies in balancing innovation with simplicity, ensuring that these offerings are accessible and understandable across diverse customer segments.
7. The insurance sector in India has witnessed several regulatory changes recently. How do these changes influence the growth strategy of life insurers in India?
Recent regulatory changes in India’s life insurance sector have significantly reshaped growth strategies, fostering innovation, inclusivity, and operational efficiency.
The “Use and File” approach, allowing insurers to launch products without prior regulatory approval, has reduced time-to-market, enabling quick responses to evolving customer needs with modular and hybrid offerings.
Increased FDI caps from 49% to 74% have brought in international expertise and capital, fuelling R&D, digital transformation, and the adoption of global best practices.
The open architecture in distribution has expanded bancassurance partnerships, enhancing market reach in underpenetrated areas like Tier 2 and Tier 3 cities. Regulatory emphasis on simplified products and transparent disclosures has led to customer-centric solutions, improving trust and policyholder engagement.
Additionally, the push towards digital transformation has accelerated the adoption of AI and analytics, enhancing operational efficiency, underwriting precision, and customer personalization. With an increasing focus on ESG compliance, insurers are integrating sustainability into their strategies through paperless processes, etc. Collectively, these reforms are driving the industry toward a more inclusive, competitive, and resilient future, aligning with India’s broader economic and social development goals.
8. What are your business expectations in the current financial year and the target you have set in the coming years?
For CY24, our goal is to achieve robust growth of over 15% YoY, reflecting our commitment to scaling operations and enhancing market presence. Beyond the immediate fiscal targets, we are formulating a comprehensive long-term strategy aimed at transitioning Future Generali Life Insurance from the “fragile five” to being a dominant player among the top 10 insurers in the Indian market.
This transformation is underpinned by three core pillars:
1. Strengthening distribution channels: We are investing in expanding our reach across underserved Tier-2 and Tier-3 cities while enhancing the productivity of our existing agency and bancassurance channels.
2. Innovation in product offerings: Tailored, flexible, and digitally driven solutions that address diverse customer needs will play a pivotal role in attracting and retaining policyholders.
3. Operational excellence and technology integration: By embedding advanced analytics and AI/ML technologies, we aim to streamline processes, improve decision-making, and deliver superior customer experiences.
Additionally, our strategic focus includes tapping into emerging opportunities, such as the rising demand for term plans and guaranteed savings products in a high-interest rate environment. Through this multifaceted approach, we envision not only achieving our growth targets but also positioning Future Generali as a trusted and innovative leader in the Indian life insurance landscape.
9. Insurance education has not been catching up in India despite a surge in BFSI business. Do you think there should be strong industry-academia collaboration to spread education and awareness?
Certainly. Despite the BFSI sector contributing approximately 13% to India’s GDP, insurance literacy continues to lag behind, highlighting the pressing need for strong industry-academia collaboration.
Future Generali is actively pursuing partnerships with academic institutions to embed comprehensive insurance modules into their curricula. These initiatives, projected to impact over 1,000 students, aim to demystify insurance while encouraging young minds to see it as an integral part of financial planning. Such collaborations not only bolster employability but also cultivate a deeper appreciation for insurance’s role in societal welfare.
On the community front, our efforts are equally robust. For instance, we’ve joined hands with the Zilla Panchayat of Sikkim to promote insurance awareness and engage local schools in foundational lessons on personal finance. These grassroots-level initiatives are critical for spreading financial literacy in underpenetrated rural and semi-urban areas, empowering individuals to make informed financial decisions.
Integrating insurance education into mainstream academia enables future generations to not only appreciate insurance but also appreciate their critical role in safeguarding livelihoods and promoting economic stability.
10. How is Future Generali positioning itself to cater to the evolving needs of millennials and Gen Z, who will dominate the insurance market in the coming years?
Millennials and Gen Z, projected to comprise 75% of the workforce by 2030 (NASSCOM), are redefining the insurance landscape with their demand for digital-first, socially responsible, and hyper-personalized solutions. To resonate with this tech-savvy and socially conscious demographic, Future Generali is embracing a multi-faceted approach that combines sustainability, digital engagement, and tailored product offerings.
One of our key sustainability initiatives emphasizes paperless policy issuance and promotes eco-friendly practices. This initiative aligns with the values of young consumers who prioritize sustainability and environmental stewardship.
Beyond sustainability, digital engagement plays a crucial role. We are enhancing our mobile-first customer experiences through intuitive apps, AI-driven recommendations, and gamified features that encourage active participation in financial planning
By blending sustainability, technology, and personalization, Future Generali is not just selling insurance but building lasting relationships with the next generation of consumers, ensuring relevance in a rapidly evolving market.
11. Finally, what message would you like to convey to the readers of The Insurance Timesabout the future of life insurance in India?
The life insurance industry in India is on the cusp of unprecedented growth. The future of life insurance will be defined by deeper personalization, where products adapt seamlessly to individual life stages, aspirations, and challenges. Innovations in technology, such as AI-driven underwriting and predictive analytics, will redefine customer experiences, making insurance faster, more intuitive, and tailored. At the same time, digital platforms will bridge the gap between insurers and under-served regions, ensuring that even the remotest parts of India have access to reliable financial protection.
India’s journey toward higher insurance penetration will require collaboration between insurers, regulators, and ecosystem players. The goal isn’t just to sell policies but to build trust and create lasting value for every policyholder. As life insurance grows to become a more integral part of Indian households, it holds the power to uplift millions, protect generations, and drive our nation toward a more secure future.
