The life insurance industry needs to enhance customer confidence

May 23, 2024 - 15:11
During a conference, hosted by the Insurance Association of Vietnam, experts and business representatives discussed  issues around the current state of the life insurance industry in Việt Nam and how to rebuild trust in the sector.
Panel discussion during the conference ‘Enhancing Customer Confidence: Vision and Solutions’ organised by IAV. — Photo courtesy of the association

HÀ NỘI — Enhancing customer trust in the life insurance industry is necessary, a conference in Hà Nội heard.

During the event, hosted by the Insurance Association of Vietnam (IAV), experts and business representatives discussed various solutions to bolster customer confidence after a volatile year.

They also discussed how to grow the local life insurance industry, Government plans for the sector, insurance contributions, the impact of life insurance on the general economy and social security, and the role of customers and insurance agents in building a safe, healthy, and sustainable insurance market.

The association's chairman, Nguyễn Xuân Việt, highlighted that the event provided a valuable opportunity for member businesses to evaluate solutions from the State's management agencies and insurance firms to address industry shortcomings and promote healthy and sustainable development.

Ngô Trung Dũng, Deputy Secretary General of the association gave an overview of changes that had been implemented in order to develop a safe and healthy insurance industry, including improving products to make them easier to understand and more accessible.

He added that the professional processes of appraisal and issuing insurance contracts had been improved to enhance transparency and customer experience.

Also at the event, Wai-duen Lee, Deputy Director of PwC Hong Kong, said that the demand for healthcare insurance in Việt Nam was growing due to affordability.

She said that the insurance industry had played an important role in maintaining the stability of the financial system as large investors in the financial markets had established close links with banks and other financial institutions, contributing to protecting the stability of households’ and businesses’ balance sheets.

Tina Nguyễn, CEO of Manulife Vietnam spoke at the event. — Photo courtesy of Manulife Vietnam

Meanwhile, Tina Nguyễn, CEO of Manulife Vietnam, emphasised that the industry this year should focus on increasing customer confidence as life insurance is a business of trust.

She said that her company is committed to making life insurance simpler, more transparent, and more professional to become the top choice for insurance planning for every Vietnamese family.

In January, Manulife Vietnam implemented M-Pro, a sales verification and supervision process for all customers who are looking to participate in life insurance. With M-Pro, Manulife Vietnam can independently evaluate the quality and content of an agent’s consultations before issuing a policy, ensuring that each customer gets the most comprehensive and accurate advice.

The M-Pro process has received positive feedback from customers. According to Manulife, 96 per cent of customers completed the M-Pro process without assistance and 99 per cent of customers stated that M-Pro enhanced their sense of security and trust in their advisors and the insurance provider, empowering them to make informed decisions about their insurance products with confidence.

Along with M-Pro, Manulife Vietnam has launched a term plan with Return of Premium named ‘An Tâm Vui Sống 2.0’ to meet the growing demand for an easy-to-understand insurance product with guaranteed returns. Along with M-Pro, Manulife Vietnam has launched a term plan with a Return of Premium option named ‘An Tâm Vui Sống 2.0’ to meet the growing demand for an easy-to-understand insurance product with guaranteed returns.

The company has also enhanced its claim payment process, reducing the average turnaround time to 1.6 days to provide financial support when customers need it most. For rejected cases involving customers with health issues, Manulife Vietnam assigns doctors to explain the reasons for rejection, ensuring customer satisfaction and leaving them with a positive experience.

According to data from the association, as of March 2024, the total assets of the life insurance industry reached over VNĐ801 trillion, an increase of 9.1 per cent over the same period last year. Total insurance benefit payouts in the first quarter of 2024 surpassed VNĐ15.48 trillion, a year-on-year rise of 35 per cent.

According to experts, the Law on Insurance Business 2022 which took effect on January 1, 2023, along with guiding decrees and circulars, have created the basis for a transparent and professional Vietnamese insurance market. — VNS