After RBI and SEBI, now the Insurance Regulatory Development Authority of India (IRDAI) is set to open the gates for video-based verification of customers looking to buy insurance products. In a circular sent to all general, health and life insurance companies last month, the regulator said that companies can use video-based identification process (VBIP) as an electronic medium to enhance ease of completing the know your customer (KYC) process. This will allow the insurance policy onboarding process to become completely digital, alleviating a wide variety of operational and compliance issues in the current customer onboarding process
Challenges in current Onboarding process
The traditional insurance KYC has a huge list of challenges from operations to compliance:
IRDA’s step of permitting Video-Based Identification Process (VBIP) for prospective customers will make the KYC process much simpler, robust, secure, and fast. This comes as a welcome move at a time when the need for contactless digital products is at its peak.
How might a completely digital insurance onboarding journey look like?
Leveraging Decimal’s award-winning DigiOnboaring platform and Digital Underwriting Portal, life and general insurance companies can build end-to-end digital onboarding and policy issuance solutions for their customers.
How can Decimal’s DigiOnboarding platform reimagine KYC operations in the Insurance sector:
- Decimal’s digital onboarding solution makes the remote onboarding and KYC process highly effective
Decrease drop off at each stage of Customer onboarding
Video enabled KYC that runs even on low Internet bandwidths
Enabling 100% IRDAI compliance
- Decimal’s paperless and contactless process of Video-based KYC for Insurance would result in reducing costs by 90% as compared to the Physical KYC processes
- Enterprise-Grade Security with AES 256 Encryption to reduce the chances of fraud
- Decimal’s Video KYC based Solution increases KYC completion accuracy
OSV (Originals Seen & Verified) check is done by the authorized representative of the insurer using OVD (Officially Verified Document) on the video call.
System auto extracts the details via OCR (Optical Character Recognition) to match the details of the customer like their name, age, address, etc. with the provided documents. Name match and address match algorithms compare the details extracted with the details provided by the customer during the onboarding journey.
The customer’s image is extracted from the documents provided and is matched with the customer image captured during live video call using face match algorithm to ensure maximum accuracy.
The entire Video KYC interaction is recorded for audit purposes.
Geo-tagging is used to ensure customer’s current location is in India.
- Device and browser agnostic solution to ensure maximum compatibility for all devices and web browsers