Improve processes and enhance experience to rebuild trust in life insurance

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Improve processes and enhance experience to rebuild trust in life insurance
Workshop “Rebuilding trust in the Life Insurance industry: Vision and solutions”.

Life insurance benefit payouts rose by 35% in the first quarter

According to report from the Ministry of Finance on the insurance market, total insurance premium revenue in the first four months of the year is estimated at VND71.2 trillion, down 3.9% over the same period last year. By the end of April 2024, total assets of insurance businesses are estimated at VND942.7 trillion, a year-on-year increase of 8.8%; investment back into the economy is estimated at VND781.9 trillion, up 8.5% year-on-year.

Speaking at the Workshop “Rebuilding trust in the Life Insurance industry: Vision and solutions” organized by the Vietnam Insurance Association on May 16, the association’s chairman Mr. Nguyen Xuan Viet, said member businesses of the association highly appreciate solutions from management agencies to overcome shortcomings and limitations of the market, helping the market develop healthily and sustainably.

According to data from the Vietnam Insurance Association, as of March 2024, total assets of the entire life insurance industry are estimated to reach VND 801,307 billion, an increase of 9.1% over the same period last year. Notably, total insurance benefit payouts in the first quarter of 2024 reached VND 15,483 billion, an increase of 35% compared to the same period in 2023.

According to many assessments, the current legal framework for insurance business in Vietnam has been fully and synchronously formed, ensuring an open, transparent and equal legal environment.

In particular, the Law on Insurance Business 2022 was passed by the National Assembly on June 16, 2022 and takes effect from January 1, 2023, along with guiding documents, decrees, and circulars to create the basis for a transparent and professional Vietnamese insurance market.

Improving contracts, enhancing customer experience

Sharing more about the impact of insurance on economic development in Vietnam, Ms. Wai-duen Lee, Deputy Director of PwC Hong Kong commented that affordability and demand for health care products and insurance in Vietnam is increasing.

Therefore, to take advantage of the above opportunity, regarding solutions to develop a safe and healthy insurance industry, Mr. Ngo Trung Dung, Deputy Secretary General of the Vietnam Insurance Association, said that solutions have been implemented including improving products to make them easier to understand and more accessible to people; the professional processes of appraisal and issuance of insurance contracts have been improved by many businesses to enhance transparency and customer experience.

According to analysis by PwC experts, the insurance industry plays an important role in maintaining the stability of the financial system as large investors in the financial market, with close links with banks and other financial institutions and contribute to protecting the stability of the balance sheets of households and businesses.

In addition, the settlement of insurance benefits is faster and more convenient for customers. Businesses also actively improve the quality of consulting teams as well as control consulting quality; enhance customer experience to bring added value to insurance products and services.

In addition, in the market, life insurance businesses have also launched many solutions and products that bring practical results to customers.

For example, Manulife launches the process of verifying information and monitoring the issuance of M-Pro insurance contracts; Prudential applies an independent inspection process before issuing insurance contracts and a tNPS survey process at each customer transaction; FWD launches instant insurance glossary feature; Generali launches electronic customer identification and authentication tool; AIA launches AIA+ application; Dai-i-chi launches 24/7 Voicebot and 24/7 Chatbot services to support customers…

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