What is VBIP?

VBIP (Video Based Identification Procedure) is a digital verification method that allows individuals to authenticate their identity remotely using video technology. VBIP is part of the onboarding journey that includes a consent-based, real-time interaction conducted digitally by an insurance company representative with a prospective customer.

This process is becoming important in the insurance industry. VBIP (Video-based Identification Procedure) enables insurers to onboard new customers fast and securely through a live video session, without the need for in-person meetings or physical document submissions.

The VBIP process involves the following steps:

  • The customer initiates the video verification process through a mobile app or web portal provided by the insurance company.
  • The customer starts to capture a live video of themselves, following specific instructions such as looking at the camera, declaring their name, and performing certain actions to verify their identity.
  • The video is then analyzed by the insurance company's VBIP system, which uses advanced facial recognition and liveness detection algorithms to confirm the customer's identity via government-issued ID and ensure they are a real person (not a pre-recorded video or a deepfake).
  • Once the customer's identity is verified, the insurance company can proceed with the onboarding process, including collecting any necessary personal or financial information and issuing a suitable insurance policy.

Difference between VBIP and VCIP

While VBIP and VCIP (Video Based Customer Identification Process) are both video-based identity verification methods, there are some key differences between the two:

VBIP is a more comprehensive process that verifies the customer's identity with liveness and authenticity checks, ensuring the person is real and not a pre-recorded video or deepfake. While VCIP on the other hand, is a simpler video-based identification process that primarily focuses on verifying the customer's identity using a live video session and government-issued ID, without the additional liveness and authenticity checks.

In the insurance industry, VBIP is generally preferred over VCIP as it provides a higher level of security and fraud prevention, which is crucial for claim settlement and sensitive personal data.

What does IRDAI VBIP mean for Insurers?

The IRDAI (Insurance Regulatory and Development Authority of India) has issued guidelines for the implementation of VBIP as a mandatory requirement for insurance companies. In a circular sent exclusively to all general, life, and standalone health insurers; IRDAI expressed its readiness to introduce a Video-based Identification Process (VBIP) allowing insurers to provide a Video-based KYC method to their customers for KYC verification.

The IRDAI's VBIP guidelines aim to modernize the insurance industry, making it more accessible and customer-centric while maintaining robust security and compliance standards. This means that insurers must adopt VBIP-enabled solutions to ensure compliance with regulatory standards. VBIP enhances the security and efficiency of the onboarding process and also helps insurers reduce costs and improve customer satisfaction.

Some of the key implications of IRDAI's VBIP guidelines for insurers include:

  • Mandatory Adoption: Insurers are mandated to implement VBIP as an alternative to traditional in-person KYC (Know Your Customer) processes, providing customers with a more convenient and secure onboarding experience.
  • Compliance Requirements: Insurers must ensure that their VBIP systems and procedures adhere to the guidelines set by IRDAI. These guidelines include data security, customer consent, and record-keeping.
  • Improved Efficiency: By digitizing the customer onboarding process through VBIP, insurers can significantly reduce the time and resources required for manual KYC verification, leading to faster policy issuance and improved customer satisfaction.

The Video-Based Identification Process (VBIP) market is experiencing significant growth, driven by advancements in AI and biometric technologies. The global digital identity solutions market, which includes VBIP, is projected to grow from $34.5 billion in 2023 to $83.2 billion by 2029, at a compound annual growth rate (CAGR) of 19.3%. The video surveillance market, closely tied to VBIP, is estimated to grow from $81.68 billion in 2023 to $145.38 billion by 2029, with a CAGR of 12.22% during the forecast period.

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What are the Problems with Traditional Insurance Onboarding?

Traditional insurance onboarding processes often involve lengthy paperwork, manual data entry, and in-person document verification. This disparate workflow can be time-consuming, inconvenient, and prone to errors, leading to a frustrating customer experience and increased operational costs for insurers. The lack of standardization and the need for manual intervention makes it difficult for insurers to scale their operations efficiently.

Traditional insurance onboarding processes often involve several pain points for both customers and insurers, including:

  • Lengthy and Inconvenient: Customers are required to physically visit an insurance office or agent, fill out lengthy paper forms, and submit various identity documents, which can be time-consuming and inconvenient.
  • Manual Verification: Insurance agents or back-office staff must manually review and verify the customer's identity documents, leading to delays and potential errors.
  • Fragmented Workflows: The onboarding process may involve multiple touchpoints, such as document submission, payment, and policy issuance, which are often not integrated, resulting in a disjointed customer experience.
  • Increased Risk of Fraud: Traditional onboarding methods are more susceptible to identity fraud, as they rely on physical documents that can be forged or misused.

How will VBIP help Insurance companies?

VBIP is part of the onboarding journey that includes a consent-based, real-time interaction conducted digitally by an insurance company representative with a prospective customer. VBIP-enabled solutions help Insurers reduce the time and resources required for verification during the digital onboarding process.

This leads to several benefits for insurance companies such as:

  • Faster Onboarding: VBIP allows customers to complete the onboarding process quickly and conveniently, without the need for in-person visits or physical document submissions, reducing the time and effort required for in-person verification.
  • Regulatory Compliance: VBIP helps insurers comply with IRDAI's guidelines, ensuring that their onboarding practices meet the necessary security and data protection standards.
  • Improved Security: VBIP's advanced facial recognition and liveness detection capabilities help insurers mitigate the risk of identity fraud, ensuring that only genuine customers are onboarded.
  • Enhanced customer experience: VBIP provides a more convenient and seamless, digital-first onboarding experience that aligns with modern customer expectations, leading to higher satisfaction and retention rates.
  • Reduced operational costs: VBIP virtualized the identity verification process, eliminating the need for manual data entry and physical document handling, which can significantly reduce operational costs.
  • Streamlined Workflows: By integrating VBIP into their onboarding processes, insurers can eliminate manual steps, reduce errors, and create a more efficient and cohesive customer journey.

What are the Key Verification and Checks involved in VBIP?

Insurers can ensure the authenticity of their customers by conducting verification and checks, allowing them to onboard new customers securely and in compliance with regulations.

The process typically involves the following key verification and checks:

  • Liveness detection: Ensuring that the customer is a real person and not a pre-recorded video or image.
  • ID document verification: Verifying the authenticity and validity of the customer's government-issued ID.
  • Facial matching: Comparing the customer's live video with the photo on the ID document to ensure a match with AI technologies.
  • Address verification: Confirm the customer's residential address, either by cross-checking the information on the ID document or additional proof.
  • Fraud detection: Include fraud detection mechanisms, such as checking for suspicious behavior patterns or inconsistencies during the VBIP process.

How does VideoSDK help Insurance (InsurTech) Companies?

VideoSDK is the only provider of IRDAI-compliant VBIP-enabled solutions for Insurance companies. With VideoSDK, InsurTech companies can streamline their operations, reduce costs, and improve customer satisfaction through virtual claim settlement. Our solution integrates seamlessly with insurers' existing systems, providing compliance with IRDAI guidelines.

Some of the key features and benefits of VideoSDK's solutions include:

  • IRDAI-Compliant VBIP: Our VBIP solution is designed to meet all the requirements and guidelines set forth by the IRDAI, ensuring that InsurTech companies can seamlessly integrate it into their onboarding workflows.
  • Robust Identity Verification: Integration with advanced facial recognition and liveness detection algorithms provides a high degree of accuracy in verifying customer identities, mitigating the risk of fraud.
  • Seamless Integration: SDK and APIs can be easily integrated into InsurTech companies' existing platforms and applications, allowing for a smooth and efficient onboarding experience.
  • Scalable and Secure: VideoSDK's cloud-based infrastructure and data security measures ensure that InsurTech companies can handle high volumes of customer onboarding while maintaining the highest standards of data protection.
  • Comprehensive Support: Our team of experts provides comprehensive support and guidance to InsurTech companies throughout the implementation and ongoing maintenance of the VBIP solution.

By integrating the VideoSDK solution, InsurTech companies can leverage a best-in-class VBIP solution that not only meets IRDAI's requirements but also delivers a superior customer experience with real-time video solutions.

Conclusion

VBIP (Video-based Identification Procedure) is a transformative technology that is reshaping the insurance industry. By leveraging the power of video, VBIP offers a faster, more secure, and more convenient way for insurers to verify customer identities, leading to improved customer experiences and reduced operational costs.

As the IRDAI continues to provide regulatory guidance on VBIP, insurance companies that embrace this technology will be well-positioned to stay ahead of the curve and deliver exceptional service to their policyholders. By partnering with trusted providers like VideoSDK, InsurTech companies can seamlessly integrate VBIP into their operations and unlock the full potential of this innovative solution.