We don’t shy away from bold campaigns that push boundaries: Ruchika Malhan Varma

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Future Generali India Insurance (FGII) has carved a niche for itself in the insurance industry by redefining how products and services are tailored to meet evolving customer needs. At the helm of this transformation is Ruchika Malhan Varma, Chief Marketing, Customer and Impact Officer. In this insightful Ag Talk interaction with Adgully, Ruchika Malhan reveals FGII’s journey of blending digital innovation with a human touch, creating customer experiences that go beyond standard transactions. She discusses the company’s bold marketing strategies and her vision for shaping the future of insurance to make it more inclusive, engaging, and responsive.

FGII has been known for its innovative products. Could you share how your approach to product innovation has evolved over time, particularly in the context of emerging customer needs?

At FGII, our core objective is to be a lifetime partner to our customers, underlined by an unrelenting focus on innovation and human touch. This commitment shapes every interaction with our customers, creating lasting relationships that extend beyond transactions to truly superior experiences.

A key part of achieving this goal is being deeply customer-centric, right from the inception of the product to every step of the customer lifecycle. We are deeply focussed on insight mining, and employ a rigorous process of market research, surveys, data analysis, and regular dialogue with communities, to gain an insight into the needs, desires, and pain points in the lives of our customers. This serves as the foundation of our product development journey.

Take, for example, our DIY Health Insurance. It was developed from the realisation that 94% of respondents in a pan-India survey expressed a strong desire to customise their health insurance policies to better reflect their individual needs. This insight led us to create a product that empowers customers to customise their coverage and reduce costs by opting out of certain features they don’t need, such as maternity cover.

Moreover, this customer insight is paired with a strategic approach to customer segmentation, allowing us to tailor our offerings. After all, the one-size-fits-all approach simply doesn’t cut it anymore. By blending these deep customer insights with a keen understanding of diverse market segments, we’ve been able to introduce cutting-edge propositions that resonate with our customers – whether it’s creating solutions for the growing number of pet owners with our FG Dog Health Insurance or addressing the specific health needs of women across their lifetime with Health PowHer. It has also enabled us to become the first insurer to offer inclusive products for the LGBTQIA+ community and live-in couples, which redefines ‘family’ across our health products to include the community.

The introduction of LEO is a significant step in FGII’s digital transformation. What were the key objectives behind launching a GenAI-powered chatbot, and how do you envision its impact on customer engagement?

Consumers today seek an engaging, tailored experience that speaks to their individual needs – this is precisely what our revolutionary Gen AI-powered chatbot, LEO, offers.

With LEO, our objective was to enhance customer engagement and simplify interactions. And while doing so, we wanted to make the entire experience enjoyable for our users, which, in turn, would help build a positive emotional connection with our brand. Therefore, this industry-first chatbot is not just functionally robust, but is equipped with human-like characteristics that provide customer engagement on par with live agents.

We wanted to create a seamless, self-service experience, where users could easily access features like downloading policy copies, health cards, renewals, tracking claim statuses, registering claims, and locating nearby garages, hospitals, or branches – all while engaging in an enjoyable dialogue. By leveraging Gen AI, Leo offers personalised, human-like responses, and even cracks an occasional joke.

We also understand that communication is key, which is why we’ve built LEO to break down language barriers. He’s multilingual and loaded with personality – think helpful, witty, and empathetic, all rolled into one.

With LEO taking the reins, we aim to reduce reliance on call centres, accelerate resolution times, and make customers feel supported throughout their journey with us.

With AI adoption on the rise in India, what role do you see it playing in the future of the general insurance industry, and how is FGII preparing to stay ahead in this digital race?

There is no doubt that AI is changing the way we operate in the general insurance market in India. There have been remarkable improvements in operational efficiency, customer engagement, and risk management. AI is poised to play a crucial role in automating claims processing, underwriting, fraud detection, and delivering personalised customer experiences at scale. With AI, insurance companies can analyse vast amounts of data to predict customer needs, assess risk profiles, and provide tailored products and services.

At FGIl, we have been on an accelerated journey towards digitization and have integrated AI into our core operations. We have been exploring AI-powered solutions to amp up product recommendations and elevate customer journeys. Leveraging AI and machine learning has significantly improved our capacity to assess risks with precision, detect fraud, and customise our services to more effectively address individual needs.

Recently, we pioneered AI-driven agent communication to promote our D.I.Y Health Insurance product. In a first in the health insurance category, we enabled agents to create their own AI-enhanced ad, starring celebrities like Aparshakti Khurana or Masaba Gupta. This innovation brought an unprecedented level of hyper-personalisation to the distribution process – a first in the industry – and we received a tremendous response from our distribution partners. We are proud to be at the forefront of delivering faster, more personalised, and engaging customer service using AI.

FGII has undertaken several marketing initiatives. How do you tailor these campaigns to communicate the company’s unique value proposition to different customer segments?

Just like our product propositions, our marketing campaigns also stem from a deep understanding of consumers, which helps us craft messages that resonate with their specific lifestyles and priorities.

Overall, we have also differentiated ourselves in the industry by using a right-brained communication approach, which is thought-provoking and creates emotional appeal. We’ve broken away from the typical approach of using fear and relying on tear-jerking narratives to promote insurance. Instead, our messaging and tone have consistently been positive and insightful. This has helped us build a strong sense of brand affinity with our customers, particularly the younger demographic, fostering meaningful connections that go beyond conventional strategies. For instance, to promote our pet insurance product, FG Dog Health cover, we roped in ace cricketer and doting pet owner Rohit Sharma and came up with the #OhMyDog campaign – it had his pet dog Magic taking over his Twitter handle, and the tweets went viral.

When it comes to our marketing initiatives, we don’t shy away from bold campaigns that push boundaries, like our viral LGBTQIA+ OOH campaign – “Redefining Family”. Featuring real-life same-sex couples on billboards across India for the very first time, it was the talk of the town, garnering much appreciation not just from the community and supporters, but from the entire industry. More recently, for Health PowHer – a comprehensive insurance product for women – we got celeb author Twinkle Khanna to change her Instagram bio, sparking curiosity and concern. She then urged women to “#DontBeAPlus1 in men’s insurance” and instead prioritise their own specific needs.

We leverage digital platforms to deliver hyper-personalised messages, reaching customers where they are. By creating clutter-breaking, empathetic, and engaging content, we ensure that we connect with our consumers in a relatable manner.

Could you share some initiatives where FGII has made a tangible difference in communities or in promoting financial inclusivity?

For IRDAI’s ‘Insurance for All by 2047’ vision to take flight, organisations like FGII need to work towards increasing insurance penetration in underserved regions. In FY 2023-24, FGII took up the arduous task of expanding the insurance footprint in the northeastern state of Sikkim.

Partnering with the government, we boosted awareness and strategically expanded our presence by leveraging digital platforms and government centres for policy issuance. We created awareness on the importance of insurance through multi touchpoint communication and opened a new office to deepen our local presence. Expanding our agency network and strengthening partnerships with motor dealers further bolstered our efforts.

But our commitment to inclusion doesn’t stop there. FGII also worked on extending its reach through financial literacy initiatives. We collaborated with Aflatoun International, an NGO that works towards promoting a global movement for social and financial education. Through NGO partners, financial literacy training was offered to over 1,500 parent beneficiaries across Ranchi (Jharkhand), Jodhpur (Rajasthan), and Thane (Maharashtra), guiding them through the basics of savings, managing expenses, and handling loans. The programs were also targeted at women, giving them the tools to take charge of their financial future.

What are some key trends that you foresee in the general insurance market over the next few years, particularly in terms of consumer expectations and regulatory changes?

The good news is India’s general insurance industry is on the cusp of significant growth, with a 13% rise in FY 2023-24 and projections to reach $50 billion by 2027. This surge is fueled by rising awareness and evolving demand for diverse insurance products and regulatory backing.

Looking ahead, the regulatory authority’s vision of “Insurance for All by 2047” and its inclusive approach will play a key role. The IRDAI is poised to introduce reforms that will ease business operations while protecting policyholders’ interests. These changes aim to boost insurance penetration, promote transparent pricing, lower commissions in certain segments, reduce expenses, and simplify products with fewer exclusions.

On the consumer front, expectations are clear: they seek simple, transparent products without unpleasant surprises, tailored coverage that meets their specific needs, better pricing, and a seamless experience. However, the trust gap between consumers and private insurers – driven by claims denials, non-disclosures, and fraud – needs to be bridged.

Health insurance, particularly in the wake of the pandemic, will continue to drive growth as consumers increasingly recognize the importance of protecting their health as a valuable asset. Meanwhile, emerging segments like cyber and pet insurance, though starting from a small base, have the potential to see significant growth in the coming years.

What is your vision for FGII over the next 5 years, especially in terms of digital transformation and customer experience?

My vision for FGII over the next five years is to lead the pack as a customer-first, digitally-driven brand in the insurance space. With a significant number of our customers embracing digital platforms, we are even more committed to digitisation, which is driving operational efficiency and reducing costs at FGII. Our digital transformation journey will be all about marrying data, AI, machine learning, and automation to deliver personalised and proactive customer experiences. We’re already using data and AI to get to know our customers better than ever before. Going forward, we aim to continue providing real-time assistance, predictive insights, and customised product offerings tailored to individual needs.

In keeping with FGII’s goal of being a Lifetime Partner to our customers, a key part of our digital transformation journey will involve creating a fully digital ecosystem, where customers can manage their entire insurance lifecycle – from policy purchase to claims – through user-friendly, omnichannel experiences. As a customer-centric organisation, we will simplify and streamline every touchpoint, ensuring customers feel supported and empowered at every step.