Access Fund in Lock-in : How a Large Life Insurer Cut Loan Disbursement Time from 7 Days to 5 Hours
The Problem
This insurer's book is 60%+ unit-linked policies (ULIPs). A significant portion of surrenders and premium discontinuations trace back to one cause: customers needing short-term cash.
The insurer already had a solution in principle — policy loans against ULIPs through external lending partners. But the process was broken. 7 days. Significant paperwork. Most customers walking into a branch for a surrender weren't willing to wait.
For customers still within the ULIP lock-in period — where surrender isn't even permitted — a policy loan was the only way to access liquidity. A slow, paperwork-heavy process meant these customers had no real option at all.
There was also a compliance requirement that couldn't be compromised: any customer data shared with a third-party lender required explicit, documented consent from the customer first.
The Solution
ValuEnable designed a process that solved compliance, speed, and simplicity together:
- QR codes placed at branches — customers walking in for surrender scan the code, upload their unit statement and policy bond. This captures consent before any insurer data is shared with ValuEnable or the lender
- Simple digital journey — customers check loan eligibility, complete e-signing, finish lender KYC — all within minutes, on their phone
- Fully orchestrated backend — assignment from insurer and loan disbursal handled via API flows through the ValuEnable platform, requiring no manual intervention
The Impact
- ₹180 Crore disbursed across policy loans in 18 months
- ~₹400 Crore in AUM estimated to have been protected from surrender
- Disbursement time: 7 days → 5 hours on average
- Less than 5% drop-off through the entire digital journey
The insurer is now extending the loan offer to its customer portal and app to reach policyholders before they walk into a branch.
