Kotak Life Insurance CEO Mahesh Balasubramanian says human agents remain essential for selling complex long-term savings products. He notes that while technology and AI will improve agent productivity, they are not replacements for personalized financial advice. The company is currently focusing on balancing market share with profitability metrics like Value of New Business.
Mahesh Balasubramanian, CEO of Kotak Life Insurance, has reinforced the importance of the human-led distribution model in the Indian insurance sector. He maintains that agents, bancassurance, and direct channels remain the backbone of the industry, especially as the sector undergoes significant regulatory changes. According to the CEO, future reforms should prioritize supporting these distribution channels to encourage long-term participation from insurance distributors.
Technology's Role in Modern Insurance
While digital adoption has accelerated, Balasubramanian noted that artificial intelligence and other technological tools are expected to function as productivity boosters rather than replacements for human agents. For simpler protection-based plans, customers may increasingly choose online self-service options. However, for complex, long-term savings and guaranteed-return products, the need for human guidance remains high. By using technology to streamline processes, the company aims to improve sales quality and reduce instances of mis-selling, which can improve customer trust and policy persistency.
Strategy for Sustainable Profitability
Kotak Life Insurance has been working toward a balanced product mix, emphasizing both protection plans and long-term savings schemes. This approach is central to the company’s goal of optimizing financial performance. Investors often track metrics such as Value of New Business (VNB), which measures the expected profitability of new policies, and Embedded Value (EV), which represents the present value of future profits. The company continues to invest in technology and distribution networks to support these metrics, aiming for growth that does not compromise long-term sustainability.
Regulatory Environment and Industry Shifts
Commenting on the broader insurance sector, Balasubramanian highlighted that consistent regulatory policies are vital for effective capital planning and business expansion. He welcomed recent shifts, such as the removal of GST on certain protection products, as a move that supports industry growth. Regarding the potential for 100% foreign direct investment (FDI) in the sector, the focus may remain on strengthening distribution partnerships rather than immediate restructuring through composite licenses, due to the operational complexities involved in insurance. The key monitorable for shareholders will be how these regulatory changes and investments in technology translate into sustained margin growth and market share in an increasingly competitive landscape.