The insurance coverage market in Vietnam has grown together with the nation’s surge to financial prominence lately. Throughout the Nineteen Nineties, solely basic insurance coverage was supplied by the state-owned insurance coverage group Bao Viet. It was solely in 1995 that life insurance coverage was made accessible to the general public.
In keeping with a report by Statista, in 2020, life insurance coverage in Vietnam outperformed basic insurance coverage. The variety of folks collaborating in medical insurance within the nation is nearly 90 % of its inhabitants, roughly 87 million out of 97 million.
Within the final decade, the full premium worth of basic insurance coverage is nearly thrice the worth recorded in the beginning of the last decade, amounting to round 57 trillion Vietnamese dongs.
Regardless of the sturdy development, conventional market penetration strategies, from chilly/heat calling to roadshows, have left outcomes wanting.
Insurance coverage firms have resorted to pop-up advertisements on fee apps, which prospects normally ignore. Salespeople have been seen sitting alongside highways making an attempt to promote motorcycle insurance policies. Corporations are attempting to win over prospects with merchandise utilizing the previous means however to no avail.
Insurtech permitting accessible insurance coverage in Vietnam
There was a rising curiosity within the insurtech sector in Vietnam. This is because of the truth that the insurance coverage business is predicted to develop significantly within the coming years.
With the speedy development of the Vietnamese economic system, the demand for insurance coverage services has elevated considerably.
Insurtech or Insurance coverage expertise permits people extra entry and transparency within the insurance coverage services or products they’re buying, so prospects could make extra knowledgeable selections of their choices.
It has typically been thought that transparency with insurance coverage firms or brokers is restricted relating to the insurance policies supplied.
With insurtech, conventional methods are changed with new digital improvements that create extra environment friendly administration, claims, pricing, and faster underwritings.
Prospects have extra data and insights, thus feeling relaxation assured that they’re coated in instances of unexpected circumstances.
Varied insurtech firms are creating an insurance coverage ecosystem in Vietnam
Insurtech unicorn Bolttech is partnering with Viettel Telecom, one in all Vietnam’s largest telecommunications community operators, to offer a brand new insurance coverage product that provides a wide range of coverages, from well being and journey to car insurance coverage. All these merchandise are made accessible by way of Viettel’s buyer app, MyViettel.
With Viettel and different respected insurers, Bolttech says it has created an “insurance coverage ecosystem” that provides options tailor-made in the direction of Viettel’s prospects’ particular wants, connecting companies and their prospects to 150 insurers and over 5,000 insurance coverage merchandise.
INSO is an insurance coverage cell phone utility the place prospects should purchase and declare insurance coverage with optimum procedures.
The aim is to enhance the life safety of Vietnamese folks and finally enhance the insurance coverage penetration fee. Optical character recognition (OCR) expertise, laptop imaginative and prescient expertise, and deep studying expertise are the applied sciences the corporate makes use of.
Along with their partnership with main native insurance coverage firms, they intention to offer modern, inexpensive, and inexpensive insurance coverage merchandise accessible to prospects.
Insurtech firms intention to serve uninsured Vietnamese
Vinaphone subscribers can now purchase insurance coverage at their fingertips with the insurance coverage expertise firm SaveMoney, by simply texting on their telephones.
The Insurtech big goals to serve tens of millions of uninsured Vietnamese by growing digital insurance coverage platforms that share sustainable financial advantages by way of strategic partnerships with banks, hospitals, and telco firms.
Launched in 2013, SaveMoney focuses on AI expertise that may carry out duties that require human intelligence and behavior, thus saving prices and providing inexpensive merchandise.
E-commerce platform Shopee collaboration with Insurtech agency Igloo, gives House Content material Insurance coverage, accessible to buy on the app. The insurance coverage product begins at a premium of VND 83,999 (US$3.50) for one 12 months and goes as much as VND 100,000,000 (US$ 4200). The coverage seeks to guard indoor property in opposition to pure disasters, hearth, and different unexpected occasions.
Chunk-size insurance coverage made on third-party platforms
In recent times, there was a surge within the sale of “bite-size” insurance coverage merchandise offered in transactions made on third-party platforms. When prospects order an merchandise from Shopee or go on an e-hailing journey on Gojek or Seize, they’ll add insurance coverage with a click on.
This pattern is fueled by the sharing economic system and the growing reputation of on-demand companies. Additionally it is pushed by the will of insurers to achieve new prospects and faucet into new distribution channels.
Chunk-size insurance coverage merchandise are usually short-term and have low premiums. They’re designed to satisfy the wants of shoppers on the lookout for safety in opposition to particular dangers.
Indonesian PasarPolis noticed the chance to faucet into this burgeoning market in Vietnam by offering a one-stop insurance coverage service that’s handy and straightforward to make use of. The corporate will launch a cellular app in Vietnam for folks to purchase insurance policies protecting a spread of wants.
Demand for healthcare and insurance coverage merchandise is on the rise
With an growing old inhabitants and a rise in spending energy, demand in Vietnam for healthcare and insurance coverage merchandise is at an all-time excessive.
With extra fintech and insurtech firms partnering with native and worldwide our bodies, the accessibility to extra inexpensive and clear insurance coverage merchandise is predicted to develop.
Vietnam has seen a rise in web customers, which is able to solely assist to push the adoption fee of insurtech companies. With authorities insurance policies for growing the fintech sector, it is just a matter of time earlier than insurtech is the popular technique to buy an insurance coverage coverage.
Featured picture credit score: edited from Unsplash
