DBS Bank India (DBS India) has adopted a unique open architecture model on a single platform in the life insurance segment by expanding its strategic partnerships with two new partners in Tata AIA Life and Birla Sun Life, in addition to Aviva India Life.
In a statement, DBS India said that this makes it the first bank in the country to adopt the new open architecture model with three life insurers on a single platform giving clients the freedom to choose using an analytics-driven, intelligent and interactive process.
A DBS India spokesperson said: "The trend that we have set in this single platform approach is that across channels, across customer segments, we will not differentiate".
"There will be no preferred partnerships or exclusive tie-ups. It's an open architecture that has gone live. As long as a product exists from these three insurance companies for a customer need, it will be offered for him (the customer) to make a choice," the spokesperson added.
Mr Surojit Shome, CEO of DBS India, said that the bank felt the need to leverage algorithms and an analytics approach to help customers match their financial and milestone needs with the most comprehensive suite of products from three reputed insurers in India.
“What is most exciting is that this differentiated technology platform is simple, easy to use and helps our customers identify the right insurance policy,” he added.
The move follows guidelines issued by the IRDAI in 2015, allowing corporate agents including banks to partner with up to three insurers in each of the segments of life, general and health. Prior to this, a bank could tie up with only one insurer in each of three segments.
Mr Naveen Tahilyani, MD and CEO of Tata AIA Life, said that algorithm-driven, need-based sales process with customer choosing the right product will help increase customer satisfaction through transparent and unbiased advice.
Meanwhile, DBS India is working towards enhancing its offerings in its Digibank platform for insurance products. It is filing with the IRDAI under e-commerce guidelines to register its Digibank platform so that the bank can start putting the insurance products on this digital platform. The IRDAI's e-commerce guidelines were issued in March this year.
The insurance regulator has been moving fast to make the insurance buying process more smooth and digitised, allowing more product classes onto the allowed list.