It is not just a new name but a renewed promise, said Satishwar Balakrishnan, Managing Director and Chief Executive Officer, Bandhan Life Insurance (formerly Aegon Life) in an exclusive interview sharing details of the immediate phase of an “aggressive growth strategy,” post acquisition.
“The synergy between our tech-centric operations and Bandhan’s extensive distribution capabilities will expand the reach of our innovative insurance solutions across the nation. The rebranding effort is intricately tied to our company’s long-term strategic goals, which have consistently centred around leveraging technology and data to enhance effectiveness and efficiency,” he added.
As of Friday, last week, Bandhan Financial Holdings officially taken over Aegon Life Insurance and the latter will now be called Bandhan Life Insurance. This transition also marks Bandhan group’s entry into the Indian life insurance sector, complementing its existing presence in banking and mutual funds.
Over the past few years, Aegon Life Insurance has dedicated substantial resources towards developing its technological capabilities, positioning the company as a leader in utilizing data and technology, and is well known for being India’s premier digital-only insurance provider.
Post acquisition, the insurer now aims to become a multi-channel, multi-product insurance company and aims to enter newer segments by strategically positioning itself as a tech-enabled B2B2C company.
Here are the edited excerpts:
Q) What is the most important thing that Aegon, now Bandhan Life Insurance, expects to gain out of this new arrangement?
Through Bandhan Life, we’re merging our expertise in digital innovation with Bandhan’s strong distribution networks to elevate value for our stakeholders. Over the next few years, we aim to shape Bandhan Life into a premier multi-channel insurance entity. This journey involves broadening our footprint across key product segments.
Up to now, our significant investments in technology have aligned with our strategy of leveraging tech as an enabler. Now, as we embark on this new journey, the fusion of tech-enabled and data-centric processes will propel us towards our objective of evolving alongside the emerging Bharat. Additionally, by aligning our vision with India’s burgeoning economic landscape and IRDAI’s vision of ‘Insurance for All by 2047’, our aim as Bandhan Life is to position ourselves as a catalyst for empowering individuals and families to fulfil their financial aspirations. Thus, the most important thing Bandhan Life expects to gain is a strengthened connection with its audience, driving both its business objectives and its mission to empower and grow with Bharat.
Q) With BFHL now being the promoter, will there be a new distribution strategy in contrast with the digital-only operating model?
With BFHL now taking on the role of promoter, our approach to distribution is indeed evolving to have a multi-channel strategy.
Our expansion plan involves leveraging Bandhan Bank‘s extensive branch network as a key distribution channel, initially targeting the eastern region, and progressively extending nationwide by September 2024. To support this endeavour, we’re augmenting our team with 1,000+ new employees dedicated to providing personalized face-to-face interactions with customers.
While technology remains pivotal, we recognize the significance of direct communication in selling life insurance. Hence, we’re integrating both digital capabilities and human touchpoints to ensure a seamless customer experience.
This transition underscores our commitment to becoming a multi-channel, multi-product organization. By filing a range of products and focusing on cross-channel sales, we’re poised to capitalize on market opportunities effectively.
Furthermore, we’re empowering our distribution partners with tech-enabled processes to streamline customer interactions and expedite transactions. Ultimately, our strategy is geared towards sustainable growth, with valuation serving as a key metric.
Q) Will there be any changes to the leadership team post acquisition? Addition of more executive roles?
There will be no change in the current leadership team post-acquisition. We intend to maintain continuity in our leadership structure to ensure a smooth transition and preserve the company’s vision and values.
In fact, we will be expanding our leadership team to enhance our distribution capabilities.
Q) How do you plan to best leverage the Bandhan name?
As Bandhan Life, we are focusing on expanding both our product portfolio and our partner network and aim to enter newer segments by strategically positioning ourselves as a tech-enabled B2B2C company.
In terms of products, we will be expanding our presence across all relevant product categories. For partnerships, on the other hand, our approach involves developing a robust platform that facilitates partnerships with various businesses, serving as the foundation for offering insurance products that require advisory services.
Our assisted model harnesses technology and data-driven insights, empowering our partners with tools and processes that streamline the insurance selection process. This ensures that customers receive tailored recommendations aligned with their unique needs. Furthermore, our tech-driven solutions enable a seamless customer journey from initial inquiry to purchase by integrating advanced automation and digital processes.
In essence, Bandhan Life Insurance is committed to harnessing technology and innovation to create a superior customer experience while optimizing operational efficiency within our B2B2C model. By expanding our product portfolio and leveraging our brand name, we aim to enhance our market presence and meet evolving customer needs effectively.
Q) What are your plans and vision for FY25?
Our plan is to make Bandhan Life into a premier multi-channel, multi-product insurance company in the coming few years. In FY25 specifically, our focus will be on executing strategic initiatives in line to achieve this goal. We aim to initiate product sales by June and swiftly expand our footprint across the entire country by September, starting with concentrated efforts in the eastern region. This regional approach allows us to fine-tune our strategies before scaling up nationally.
To support our expansion, we’re committed to adding around 1,000+ skilled professionals to our team by September, enhancing our distribution network and ensuring accessibility to our products. We will be leveraging technology for efficiency while emphasizing the importance of human interaction where it adds value.
Our long-term goal is to build a sizable customer base over the coming few years, driving valuation growth and reflecting our dedication to sustainable success.
Q) Will the acquisition or rebranding affect existing customers in any way?
This change does not affect existing customers, their policies, or the quality of our service. All the commitments we’ve made to them remain unchanged. Bandhan Life empowers us to serve them even more effectively, prioritizing their insurance requirements while safeguarding their financial well-being.
Our goal is to ensure that this change enhances our customers’ experience, fortifying the trust and loyalty we have built towards them over the years. It is not just a new name but a renewed promise to support their ambitions and life goals. Our best-in-class services and product suite will continue to grow in line with our commitment and our customers’ needs.