Last week I visited Biocon Foundation (BF), the CSR unit of Biocon, a research-driven, global healthcare company headquartered in Karnataka. Among the other activities, BF also engages in facilitating the provision of health microinsurance among vulnerable households.

Specifically, they are associated with the Aarogya Raksha Yojana scheme (ARY) since 2005. Each year around 75000 lives have been covered under the scheme.

While the product itself is innovative and provides comprehensive coverage, the processes are also just as novel. The Foundation has used mobile technology for policy enrollments. The insurer, HDFC-ERGO General Insurance Company initiated this effort. Think Ways Technology provides the IT guidance, equipment and support.

During my visit, I questioned the Foundation and the insurer on the advantages that the technology brought home, as well as the learnings and the challenges. This blog entry summarises my understanding of the same.

Requirement and Process

When we talk of using high end technology, it is imperative to understand what exactly it entails. The basic modus operandi is a Java-based software that can be installed in a cell phone (the basic requirements of the cell phone includes atleast 2 GB memory card, a minimum 2 pixel camera to take photographs of the insured, the bluetooth accessory and GPRS accessibility to transfer the data).

The software is loaded in the mobile phone and a main server which is installed at Think Ways’s head office. The software makes available to the agent/representative, the application form on her/his mobile phone using which s/he enrolls clients (with full information of the family members and their photographs) and provides a receipt to them for the premium paid. Basically, the representative takes to the field only her/his mobile phone and a receipt book and not bundles of printed paper!!

After the forms are filled in (the number of forms depends on the capacity of the mobile phone), the data collector uses GPRS to transfer the data to the main server and the output is generated in the form of an excel sheet. This excel sheet is sent to the insurance company and the TPA, so that they can share the policy documents and issue the identity cards respectively to the clients.

In case the representative is scheduled to work in a remote area where GPRS is inaccessible, the software is provided in a computer located at the block level. Data can be transferred to the computer using bluetooth. The computer will be connected to the main server and the data can be further transferred to the IT provider’s head office. It must be mentioned here that the computer need not be internet enabled.

Benefits

While there are substantial costs attributed to this Java-based software made available by the IT provider, the insurer and the implementing agencies believe that in the long term, this model will bring down operating costs and immediately increase insurance uptake. The need for double entry at the back-end office is completely eliminated and therefore labour hours (and their associated compensation packages) will reduce dramatically.

Numerical validation: For paper based applications process, a representative can fill approx 100-150 applications per day. This means four people can fill up to 600 forms in a day. It takes one to two days to input all this information into a computer and after every few days or so consolidate the excel sheets of each data collector.

In case of mobile application, a single representative can fill up to 600 forms per day. Thus, four people can fill up to 2400 applications per day. Remuneration is restricted to only front end data collection and there is no back-end data entry.

BF has used mobile based enrollments only in the last six months, during which period 35,000 enrollments were made, 15000 of which were mobile based. Six people were trained for this purpose by the insurer and the IT provider. In addition, BF also cites that using mobiles for recording application related information and capturing photographs of the insured, interests the community and they are keen to enroll themselves.

Potential roadblocks

Other than the costs incurred, the consortium is not able to identify any immediate roadblocks with the technology, given that the problem of connectivity is resolved using Bluetooth. Also, since a unique PIN number has to be entered to access the data loaded in the mobile phone, the possibility of any manipulation of data is ruled out. Even if the mobile is misplaced or stolen, a third party will not be able to access client information.

However, as the saying goes…technology tends to fail us when we need it the most..! Therefore we still need to wait and watch. Though the journey so far has been productive (as claimed by the consortium), one really needs to consider other challenges that could arise in the process.

Field Demonstration and Learnings for the PWDS project

Having elaborated on the technology, I think it is time to talk about why I visited BF. In an earlier entry, I had indicated that one of our projects is experimenting with mobile based enrollments. This trip was organised by the consortium in the hope that the ICs (who joined us) would get hands-on training experience and would be able to understand the process better.

The enthusiasm and concentration of the ICs was encouraging. The hope is that the innovation will take off on a high note at our PWDS sites and the project will become a learning ground for the sector on the ‘need’ and use of technology in penetrating into the rural market!

This entry was posted on Thursday, March 4th, 2010 at 12:43 pm and is filed under General posts. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.