Digit Insurance, which in its latest round of funding gained unicorn status (valued at over $1 billion), is working on technology to make issue of policies and endorsements a straight-through process. Digit is already settling 73% of its motor insurance claims through automation with software reading the invoice, driver’s licence and RC book in addition to doing damage assessment through photographs and videos.
The company is also the biggest deployer of API (application program interface) integration with partners, which allows distributors to plug into the company’s systems. It has so far made available 700 APIs to partners, which gives them speedy access to Digit’s products and services. Speaking to TOI,
Digit Insurance chairman Kamesh Goyal said that the company is using technology to give decision-makers a deeper and faster way to look at data. “We are making policy issuance a straight-through process across all lines of products. We are also trying to make workflows to make endorsements to policies a straight-through process.”
According to Goyal, while technology is being used as an enabler, it is not the only differentiator. “It is also about risk-selection and pricing skills, product design simplification, user interface, user experience and execution. Pricing is crucial — even if you have the best technology but go wrong in pricing, things can go haywire,” said Goyal.
Digit Insurance is a joint venture promoted by Goyal, an industry veteran, and Canadian billionaire Prem Watsa’s Fairfax Group. Watsa had earlier said that Fairfax would look at taking Digit’s tech-enabled model to other markets where it had a non-life business.
“Fairfax is keen to take the model to other markets and we have had a lot of people from the group come and look at our operations. The challenge is that their IT systems are different and it is not entirely a technology play where a vendor can facilitate a plug-and-play model. It also depends on local norms for the auto sector and how companies look at data. The discussion continues,” said Goyal.