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Competition good for insurance choices

Update: September, 13/2009 - 00:00

Competition good for insurance choices

(14-09-2009)

HCM CITY — Strong growth potential and fierce competition have seen new products and offers flood the local insurance market of late, industry insiders say.

Phung Dac Loc, general secretary of the Viet Nam Insurance Association, said that Viet Nam was a market with considerable potential for the insurance industry.

"The insurance business environment in Viet Nam is very promising as the entire individual housing and property market have not been exploited, as also the agricultural sector," he said.

Loc said that alongside Viet Nam’s development and integration process, insurance demand was set to increase steadily. He estimated that in recent years, the non-life insurance sector had been growing at 15 per cent per year.

Some foreign economists have said Viet Nam’s insurance market will grow by 25 per cent per year by 2013.

Loc said that there were 27 insurance companies in Viet Nam who were offering a lot of new products with many benefits in order to compete with each other for the local market share.

Prudential Viet Nam Life Assurance has just introduced a "three in one" policy for families. This means when one family member signs a life insurance contract, two other members of the family will also get coverage.

AIA Viet Nam Life Assurance Co is offering a few life insurance products that include health insurance.

The ACE Life Assurance Co Ltd, meanwhile, has also introduced new products whose value is adjusted to inflation.

Non-life insurance companies have also deployed many strategies to attract customers.

Soon after the Road Police Department announced that vehicle insurance was mandatory, the Post and Telecommunications Joint Stock Company began offering automobile insurance.

The Vien Dong Joint Stock Company has introduced insurance schemes for individual houses, household equipment and other property.

Insurance companies have also improved their consultancy services for customers.

Telephone calls, emails, direct meetings at home or the workplace – all these approaches are used by insurance companies to sell their products.

Insurance company representatives said it was very important to provide quality consultancy services and offer insurance products that suit the needs of customers. They also stressed the need to keep in touch with the customer after the policy is sold.

Many experts said that selling insurance was very difficult because it was not a "normal" product. — VNS

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