A rountable event to discuss Vietnam’s life insurance market in HCM City on June 7. (Photo: VNS/VNA) Ngo Trung Dung, its general secretary, said the market grew at 25-30 percent ayear in 2011-19 before falling to 17-18 percent in the last two years, and isexpected to fall further this year.
He blamed the decline on several factors, with the COVID-19 outbreak being oneof the main ones.
“[But] the pandemic also brought a positive by helping the community betterunderstand the role of the insurance industry, but social distancing affectedthe interaction process, insurance consultancy and customer care.”
However, whether there was COVID or not, a downward trend was inevitable, hesaid.
"But even if the growth rate drops to 10 percent, Vietnam’s life insurancemarket is still attractive to investors. This is because the annual growth ratein many other markets in the region is only 3-5 percent.”
Its potential is huge due to the growing middle class and the low rate ofinsurance, he said.
By the end of 2021 only an estimated 11 percent of the population had lifeinsurance, he said.
People’s awareness has improved and amendments to the Law on Insurance Businesswould be made soon, also factors that would help drive the market, he added.
Sang Lee, CEO of Manulife Vietnam, said there is a huge insurance protectiongap in Vietnam.
According to Swiss Re, the protection gap typically covers health, retirementand mortality.
The mortality protection gap in Vietnam was estimated at 1.77 trillion USD in2021, and the health protection gap at around 36 billion USD in 2017.
Its population is ageing fast, and, like many emerging economies in Asia, Vietnamfaces a retirement protection gap, highlighting the need for Vietnamese tobetter understand the importance of financial planning, Lee added.
He said Manulife’s third Asia Care Survey released in last April pointed outthat demand for insurance remains high in Vietnam, with 85 percent and 71 percentof people finding insurance and retirement planning important since COVID began.
Some 91 percent planned to buy new and additional insurance in the next 12months, with life (55 percent), health (45 percent) and accident (41 percent)topping the list, he said.
Dung said digital transformation has helped insurance companies improve servicequality, the customer experience and interactions with customers, and create morepersonalised insurance policies to meet customers’ needs.
Lee said, “Currently, our business as well as operations are organised aroundthree value streams – search, manage and review, and claims.
“We also have Manulife Shop and Momo – our pioneering efforts for going fullydigital. Also, our claim experience is now fully digital as well. Weprovide nearly immediate payment after documents are verified.
“For manage and review, we just launched a revamped customer portal with newfeatures built in that provides enhanced customer experience.
“We have been focusing on observing and responding to customer demands.”
According to Dung, insurance policies now mainly offer financial benefit but infuture need to cover home healthcare, midwifery, nursing home care, andfunerals to meet the growing needs./.
VNA
