Introduction
Motor insurance is Digit Insurance's largest business, and renewals are where motor profitability is won or lost. Acquiring a new motor customer through a dealer, aggregator or agent costs commissions, while a renewal at the same insurer is far cheaper. Yet many Indian vehicle owners shop around at renewal, let own-damage cover lapse, or renew late and face a fresh inspection. This question asks how to improve Digit's motor policy renewal journey. I'll clarify the goal, segment users, map the journey and pain points, generate and prioritise solutions, and define metrics.
Mention distribution early. Most of Digit's policies come through partners, so the renewal journey runs across Digit's app, partners' platforms and agents. Improving renewals means designing for all of them.
Step 1
Clarifying Questions (5 mins)
- Which vehicles? Private cars and two-wheelers with comprehensive or own-damage policies. Commercial vehicles are out of scope.
- What is the goal? Increase the renewal rate (policies renewed with Digit within the grace period) while keeping pricing profitable.
- Which channels can we change? Digit's app, website, WhatsApp and SMS communication, and tools Digit provides to partners and POSP agents.
- Any constraints? IRDAI rules on renewal notices, No Claim Bonus (NCB) transfer rules, and partner agreements that define who "owns" the renewal.
- Current baseline? Assume Digit's motor renewal rate is around 45–55%, with big variation by channel.
Goal: raise the share of eligible motor policies renewed on time with Digit by 8–10 points over a year, without discounting below profitable rates.
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