Pawan Choudhary, CTO, Zinnia: Blockchain and ML are time-testing technologies that are seeing major surge in insurance industry

Pawan Choudhary is the Chief Technology Officer (CTO) at Zinnia in India. With over 20 years of experience, Pawan has previously held senior-level positions at a site head at LinkedIn, Twilio and IHS Markit. In an interaction with Times of India Tech, Pawan shared insights on InsurTech industry, role played by Zinnia's India team in global operations and more.

Can you elaborate on the India team’s role in driving Zinnia’s global product innovation, particularly in the life insurance and annuities domain?
Zinnia's India team plays a pivotal role in driving our global product innovation in the life & annuities domain. Our team of over 900 technologists in India are the engine behind many of our key product advancements. They also built the entire underwriting module for our term life insurance product, now used by over 50 clients globally, streamlining the application process and reducing approval times by 20%.

Beyond specific product features, the India team contributes to our R&D efforts. They are currently spearheading the development of an AI-powered call center which is helping to increase rep productivity by up to 70% while reducing the operational toil. They are also exploring the application of blockchain technology to streamline annuity payouts, aiming to increase efficiency and transparency for both insurers and policyholders.

India also plays a crucial role in quality assurance and testing, ensuring the reliability and security of our platform for a global user base. Their testing processes have been instrumental in achieving client confidence resulting in 2.9 billion of premium processed by our clients which is 1000% growth in premium over a period of three years.

What are some global trends you see shaping the InsurTech ecosystem globally?

A few key global trends that are reshaping the InsurTech ecosystem are: The use of AI in almost all aspects of policy from issuance to underwriting to personalized. Another trend is the ability to buy life and annuity products without 3Ps (paper, postage & print). AI-driven personalization allows for tailoring products and services. Think personalized life insurance premiums based on individual risk or customized annuities aligned with specific retirement goals.

How has the growth of Blockchain and Machine Learning impacted technology solutions in the insurance industry worldwide?
Blockchain and machine learning (ML) are time testing technologies that are seeing a major surge in the insurance industry. Blockchain strengthens security, streamlines claims, boosts transparency and simplifies compliance. At Zinnia, we are using Blockchain to create a ledger of policy records and changes. This will help enable simplifying the conversion process across carriers. Simultaneously, machine learning powers personalized pricing and risk assessment, automate underwriting and claims, enhances customer service with AI chatbots, and enables predictive risk management.

How do you see technology driving changes in the insurance industry both globally and in India?
Technology is reshaping the insurance industry globally and in India, albeit at different paces. Globally, trends like AI-driven underwriting, personalized pricing, and digital-first customer experiences are becoming increasingly prevalent. Blockchain and IoT are also gaining traction, offering the potential for increased efficiency and transparency. In India, while adoption is accelerating, the focus is often on increasing insurance penetration and addressing the needs of a large, underserved population. Mobile technology and digital distribution channels are key drivers, enabling insurers to reach remote areas and offer affordable micro-insurance products. Both globally and in India, technology is streamlining operations, improving risk assessment, and enhancing customer engagement. However, challenges remain, including data privacy concerns, regulatory hurdles, and the need for digital literacy, particularly in emerging markets like India. Despite these challenges, technology's transformative power is undeniable, promising a more efficient, customer-centric, and inclusive insurance landscape.

How do you compare the tech quotient of Indian insurance companies versus those in the US?
Indian insurance firms are rapidly adopting AI and digital tools to improve efficiency. Some of the scenarios of doing business in India due to IRDAI are quite welcoming for insurance companies in the country. The US companies must deal with state-based regulations which means there is no one cookie-cutter solution. There is a moat for companies which can sell and distribute insurance in all 50 US states due to heavy compliance and regulatory environment. The insurance penetration in the US is much higher and the premiums are much larger as it is getting considered as a wealth management tool rather than just insurance.