From digital payments to quick settlements

Md. Kazim Uddin, Chief Executive Officer, National Life Insurance PLC.

National Life Insurance (NLI) is one of the most trusted insurance companies. It has diversified its portfolio to offer a wide range of products that cater to customers' unique aspirations and religious beliefs. Over the past 41 years, NLI has grown significantly. Md. Kazim Uddin, Chief Executive Officer, discusses how the company is streamlining claim settlements and diversifying products to ensure financial security for all.

The Daily Star (TDS): Ten years ago versus now, how has your product Line-up grown or changed?

Md. Kazim Uddin (MKU): National Life Insurance tried its utmost to provide customised plans to meet individual needs, including family floater options and varying sum assured amounts. An increase in digital platforms offered easier access to purchase and manage life insurance policies at NLI. Bancassurance is becoming more significant. Banks and Insurers together are trying to sell Life Insurance through bank branches, ensuring bank-connected customers for insurance coverage. Product Diversification has improved. According to PwC analysis, traditional life insurance products remain as they are. But newer products (Like investment-linked and Retirement/Annuity products) are now part of the new product mix. Takaful or Islamic Life products have also been attributed to the overall life policy increase. There have also been some Product Innovations, although they fall short of optimal diversity.

TDS: What steps have you taken to make the Claim Process easier for customers?

MKU: Documentation requirements have been simplified at NLI. This includes the reduction of documents for Claim submission, the reduction of Processing Time from several weeks to only a few days (varies by company size). A  clear checklist was provided on designated websites, policy books and mobile apps. Acceptance of scanned or Digital copies of documents, instead of only physical documents. Direct Bank Transfer instead of cheques.

NLI also constituted dedicated claim-support teams with special call centre units trained for claims settlement. Relationship managers have been assigned to assist policy-holders and nominees/beneficiaries. Helpdesk support has been ensured for claims settlement.

TDS: What are the most common reasons claims get delayed or rejected, and how are you fixing them?

MKU: Most common reasons claims get delayed or rejected are incomplete documentation, data mismatches regarding nominees or bank details, and fraudulent activities, while rejections typically stem from non-disclosure of pre-existing conditions, policy lapses, or legal disputes. To address these inefficiencies, NLI is modernising its operations through digital verification linked to national registries, automated data matching, and a dedicated fast-track desk for death claims. Additionally, the company is proactively preventing policy lapses and data errors by mandating nominee NID capture, enabling easy app-based updates, and implementing robust premium payment reminders via SMS, calls, and auto-debit facilities.

TDS: How do you protect your system and Customers from fraud?

MKU: NLI pursues protocols like KYC and e-KYC, which guarantee a strong Identity verification that includes. Mandatory NID Verification for customers and nominees, biometric or photo verification, cross-checking of customer information with the national database, prevents identity theft and false policy setups. We secure technology infrastructure through encrypted communication for data transfers, two-factor authentication for customer portals, role-based access control for staff, regular vulnerability testing and cybersecurity audits, and firewall & intrusion detection systems (IDS/IPS).

TDS: Are young people buying life insurance, or does it still mostly appeal to older clients?

MKU: Yes, young customers are increasing, but still a minority. More people aged 25-35 are buying Life insurance than ever. The key reasons are growing middle-class income, more awareness through digital channels, the bancassurance approach, online policy buying, concern for financial security. The core customer base, however, is still older Clients (35-55 age group). Because people earn a more stable income, they have dependants, they feel more responsibility, are more risk-aware than younger customers, and can afford higher premiums.

TDS: How are you using digital tools or mobile platforms to make Life Insurance easier to buy or manage?

MKU: NLI is simplifying life insurance by enabling customers to compare plans and purchase policies directly through their website or mobile app, featuring Digital KYC for verification and instant policy issuance. The mobile app further facilitates policy management by allowing users to view active policies, check premium due dates, download documents, update personal or nominee details, and track policy status in real-time. Additionally, premium payments have been made convenient through various digital options, including mobile wallets like Bkash, Nagad, and Rocket, as well as debit/credit cards and bank auto-debit systems.