United India Insurance has undertaken significant innovative transformations and is strategically positioning itself to better address the evolving needs of its customers and maintain a competitive edge in the market.
Q: Could you start by giving us a brief overview of United India Insurance Company’s performance over the past year?
A: United India Insurance, the fifth-largest insurer by gross premium, maintains a prominent position within the Indian general insurance market. In fiscal year 2024 (FY24), the company strengthened its market share, achieving a 12.51% increase in premiums to ₹19,852 Cr, compared to FY2023-24.
During 2024-25 more weightage is being given to bottom line improvement with profitable growth resulting into return of the company into the black after nearly a decade. With a long-term strategy to become the most preferred and financially robust insurer, key measures contributing to the success in bringing back profitability include enhancing underwriting quality, improving claims management, alignment of procurement towards more profitable ones, optimizing business mix, while maintaining investment incomes and yield.
The overall incurred claims have decreased, particularly in the health sector. The company has demonstrated notable growth in the insurance business segments of motor, engineering, and miscellaneous, while adapting the regulatory changes by process reengineering and accelerating the usage of actuarial modelling, analytics and risk management tools. These measures are ongoing, and new initiatives are rolled out for yielding positive results way forward.
Q: What have been some of the key factors driving the growth of United India Insurance Company and what is your target for next five years?
A: United India Insurance has undertaken significant innovative transformations and is strategically positioning itself to better address the evolving needs of its customers and maintain a competitive edge in the market. Key drivers of this growth include a reinforced customer-centric approach evident in its distribution channels. The introduction of dedicated relationship Managers, such as Business Development Managers (BDMs) and Business Development Executives (BDEs), has strengthened traditional distribution channels, while concurrently enhancing various digital distribution methods.
These digital transformations have streamlined operations and improved customer experience, as exemplified by the fully digitized motor claims process, from initial notification to the direct credit of claim payments to the claimant’s account. Furthermore, the company has broadened its product portfolio by introducing new offerings and diversifying existing ones to cater to a wider spectrum of customer requirements, in addition to forming strategic partnerships to expand its capabilities and market reach.
Looking ahead, United India Insurance aims to solidify its market position over the next five years by prioritizing continuous innovation, expanding its product portfolio, and further enhancing customer service. The strategic focus will encompass leveraging technological advancements, maintaining high levels of customer satisfaction, and pursuing targeted growth initiatives to ensure sustained success in an increasingly competitive environment.
Q: In your view, what are the most significant opportunities in the insurance industry today? How is United India Insurance positioning itself to take advantage of these opportunities?
A: The Indian insurance industry is poised for significant growth, fueled by favorable market dynamics and supportive regulatory frameworks. The Indian government’s initiatives, such as the “Insurance for All by 2047” mission, aim to increase insurance penetration and promote financial inclusion, addressing the current low penetration rate despite India’s position as one of the largest insurance markets. This presents a substantial opportunity to expand coverage, particularly in rural and semi-urban areas.
The recent amendments to the Insurance Laws (Amendment) Bill, 2024, proposing an increase in the Foreign Direct Investment (FDI) limit to 100%, are expected to attract greater foreign investment and accelerate the growth of the insurance sector.
Furthermore, the industry is currently experiencing a surge in opportunities driven by digital transformation and technological advancements. The growing adoption of online sales channels, mobile applications, and partnerships with fintech companies enables insurers to reach customers more effectively and enhance operational efficiencies.
This digital shift allows insurers to access a broader audience, particularly in Tier-2 and Tier-3 cities, while mobile apps and online services simplify customer access to insurance products and services. The integration of Artificial Intelligence (AI), Machine Learning (ML), and Big Data analytics is revolutionizing underwriting, claims processing, and customer service, allowing insurers to offer personalized solutions and improve operational efficiency.
United India Insurance is strategically positioning itself to capitalize on these opportunities within the Indian insurance industry by focusing on these key areas, with the goal of strengthening its market position and fully leveraging the growth potential.
Q: What are some of the biggest challenges facing the insurance industry currently, and how is your company addressing these challenges?
A: The insurance industry currently faces several significant and evolving challenges. The increasing frequency and intensity of extreme weather events and natural disasters, driven by climate change, have heightened the importance of managing climate-related risks and mitigating substantial financial losses. Simultaneously, insurers must adapt to evolving policyholder expectations and provide more personalized, convenient, and digitally enhanced interactions to meet rising customer demands.
Economic and market fluctuations, including inflation, interest rate volatility, and regulatory changes, present further complexities for the industry. Efficient claims management is paramount to maintaining customer trust and satisfaction, while robust fraud detection mechanisms are crucial for protecting against financial losses and preserving the integrity of the industry.
In an increasingly digital landscape, enhanced cyber-security measures are essential for safeguarding sensitive data and mitigating the growing threat of cyberattacks. To remain competitive in this rapidly evolving environment, insurers must continuously innovate and adapt their strategies to address these multifaceted challenges.
The biggest challenge with a PSU Insurance company in India, which is not faced by other peers of private sector, is significantly big pension liabilities which is significant and for some such entities there had been insufficient provisioning in the past years added with higher provisions in subsequent years due to regular wage increases, extended life expectancies, interest rate fluctuations, and additional employees added in the umbrella of old pension scheme.
The Indian insurance industry is poised for significant growth, fueled by favourable market dynamics and supportive regulatory frameworks. The Indian government’s initiatives, such as the ” Insurance for All by 2047″ mission aim to increase insurance penetration and promote financial inclusion
United India Insurance is proactively addressing these challenges by investing in advanced risk modeling techniques, diversifying its risk portfolio, and developing strategic reinsurance partnerships. Furthermore, the company is committed to educating customers about the importance of comprehensive insurance coverage for catastrophic events and integrating sustainability and climate resilience into its core business practices. By taking these proactive measures, United India Insurance aims to provide reliable coverage and maintain financial stability in the face of increasingly frequent and severe catastrophic events.
Q: Artificial Intelligence through its cutting-edge technology has huge potentials for increasing operational efficiency, better underwriting and claims management, preventing fraud etc. How are you utilising this new technology?
A: Artificial Intelligence (AI) is revolutionizing the insurance industry, offering transformative potential across the entire value chain. AI-powered tools are increasingly deployed to streamline repetitive tasks and accelerate processing times, enhancing operational efficiency. AI enables dynamic risk evaluation through the analysis of vast datasets beyond traditional metrics and facilitates predictive analytics for more accurate forecasting and risk management.
In claims processing, AI significantly enhances speed and accuracy. Image recognition algorithms, for example, can assess vehicle damage from photos submitted via mobile applications or online portals, automating estimates for minor accidents. This not only improves efficiency but also fosters customer trust through increased transparency. Furthermore, AI-driven insights and chatbots enable companies to tailor services to individual customer needs, resulting in more personalized and effective customer engagement.
AI is also proving to be a game-changer in fraud detection. Neural network-based systems can analyze historical claims data, social media signals, and behavioral patterns to identify and flag suspicious activity with greater accuracy and speed.
The availability of open-source satellite data, historical climate data spanning multiple years, and publicly accessible unstructured data has further enhanced AI’s impact in the insurance sector. Additionally, the proliferation of IoT devices and telematics data is continuously enriching the data ecosystem, providing real-time insights into asset usage, driving behaviour, and environmental conditions. These datasets allow insurers to
Artificial Intelligence (AI) is revolutionizing the insurance industry, offering transformative potential across the entire value chain. AI-powered tools are increasingly deployed to streamline repetitive tasks and accelerate processing times, enhancing operational efficiency
analyse long-term climate trends, assess geographical risks with greater precision, and develop proactive risk mitigation strategies.
AI can further enhance Parametric Insurance offerings by leveraging publicly available credible data to create smart contracts that trigger payouts automatically when predefined thresholds are breached. By integrating blockchain technology, these smart contracts ensure transparency, security, and instant execution of payouts without the need for manual intervention. Furthermore, AI-powered geofencing can dynamically adjust premium calculations based on the precise location of the insured asset, leading to fairer pricing and reduced moral hazard. This seamless, data-driven approach enhances efficiency, builds policyholder trust, and accelerates claims processing.
At United India Insurance Company Limited (UIICL), our AI strategy focuses on three core objectives: enhancing efficiency, improving risk assessment, and elevating the customer experience. We have identified key areas for AI implementation, with tools like chatbots and predictive analysis already in use. While some initiatives are in the pilot phase, others are in the early stages of exploration as we continue to integrate AI solutions into our operations.
Q: Health Insurance Space is witnessing entry of new players like Insurtech and standalone companies who are offer innovative indemnity and wellness products. How your company plans to grow in this segment?
A: We are encouraged by the increasing presence of Insurtech and standalone companies in the health insurance sector, which is driving a new wave of innovation in product offerings. At United India Insurance Company Limited (UIICL), our strategic focus remains on developing and introducing innovative insurance products that provide comprehensive coverage and unique benefits. We have recently launched new health products specifically designed to cater to the evolving needs of the younger generation, addressing their lifestyle and wellness preferences.
We firmly believe in the power of collaboration and are actively pursuing partnerships with Insurtech companies to leverage their technological expertise and enhance our product offerings. Recognizing the importance of holistic well-being, we are also expanding our wellness programs to include preventive care, fitness incentives, and mental health support. These initiatives aim to promote a healthier lifestyle among our customers and foster a greater sense of value in our insurance products.
UIICL is strategically positioned to lead the way in the health insurance segment by continuously adapting to market changes and fostering innovative collaborations. We are confident that these strategic initiatives will not only drive our growth but also contribute to a healthier and more secure future for our customers, resulting in increased satisfaction and long-term loyalty.
Q: What Global trends do you think will have the most significant impact on the Indian insurance market in the coming years?
A: As previously discussed, the global Insurtech boom is driving significant innovation within the insurance industry. In India, this is expected to translate into an increased focus on leveraging technology to reduce operational costs, enhance customer experiences, and develop more personalized products. Insurtech startups will continue to challenge traditional insurers, prompting all companies to accelerate their evolution and embrace innovation.
Globally, the adoption of telematics and the Internet of Things (IoT) is expanding rapidly. In India, as the number of connected devices grows, we anticipate a rise in usage-based insurance models, where premiums are more personalized based on individual driving habits or lifestyle factors measured by IoT devices.
This trend could extend to health and home insurance in the future, enabling more tailored policies. Furthermore, the adoption of cutting-edge technologies, including
The global Insurtech boom is driving significant innovation within the insurance industry. In India, this is expected to translate into an increased focus on leveraging technology to reduce operational costs, enhance customer experiences, and develop more personalized products.
parametric insurance and geofencing, coupled with the rapid digitization of the insurance sector, will improve customer experiences and increase insurance penetration across India.
Global regulatory frameworks and best practices, particularly those related to data privacy and consumer protection, will influence India’s regulatory landscape. The emphasis on consumer rights and transparency observed in global markets is likely to drive Indian insurers toward adopting more consumer-centric policies and practices, fostering a more transparent and trustworthy insurance ecosystem.
Globally, insurers are adapting their risk models to account for environmental factors. In India, this could manifest as a greater focus on disaster-related coverage, especially in flood-prone areas, as well as products that support sustainable practices, such as eco-friendly homes or vehicles.
These trends will collectively lead to increased competition, enhanced customer engagement, and a shift toward more inclusive and accessible insurance products throughout India.
Q: Aside from your professional responsibilities, could you share with us some of your personal interests or hobbies that you are passionate about?
A: While my professional responsibilities are significant, I also prioritize personal interests to maintain a healthy work-life balance. My previous postings were in the National Capital, which is surrounded by good number of wetlands and was in proximity to the foothills of Himalayas, giving me opportunity during week ends to engage into bird watching and wild life photography.
Observing and capturing photo-videos of different bird species and other wild life and their behaviors in various natural habitats provides a unique perspective on ecosystems and adaptability. Interestingly, at times I could also witness the risk management measures adopted by them.
This pursuit not only offers relaxation but also hones my observational skills, attention to detail, and analytical thinking, which are valuable assets in my professional role. I believe maintaining a balance between professional commitments and personal interests contributes to my overall well-being and enhances my effectiveness at work.
