Life insurance companies in Vietnam are at early stages of digital adoption, and are contemplating a planned and cautious approach to digitalisation. Using Vietnam digital’s data collected in 2019 and compare with industry expert commented in 2017, we can see clear picture for Digital Transformation of Vietnam’s Life Insurance in 2020. This document is a part of Online Marketing Strategy Review toolkits to identify what need to be fixed and priority level of Digital Transformation in your company next year.

1. DATA & TREND: DIGITAL TRANSFORMATION OF
VIETNAM’S LIFE INSURANCE COMPANIES (2019-2020)
LIFE INSURANCE COMPANIES IN VIETNAM ARE AT EARLY STAGES OF DIGITAL
ADOPTION, AND ARE CONTEMPLATING A PLANNED AND CAUTIOUS
APPROACH TO DIGITALISATION.

2. VIETNAM LIFE INSURANCE INDUSTRY
STRONG DRIVER FOR FUTURE GROWTH
INSURANCE ASSOCIATION OF VIETNAM
INSURANCE MARKET’S TOTAL PREMIUMS WAS US$4.7BN IN 2017 AND US$2.6BN IN 1H2018, POSTING A CAGR
2012 – 2017 OF 20.7%. BETTER INCOME AND HIGHER AWARENESS ARE KEY DRIVERS FOR THE MARKET’S
PERFORMANCE. COMPARED TO PEERS, VIETNAM HAS MUCH LOWER LIFE INSURANCE PENETRATION RATE AND
THE MARKET STILL HAS GREAT POTENTIAL TO GROW
COMPANIES CONTINUE PARTNERING WITH BANKS TO ACCESS THE CUSTOMER DATABASE AND UTILIZE BANKS’
NETWORK. THEY ALSO TAKE THE OPPORTUNITIES FROM E-COMMERCE IN OFFERING PRODUCTS VIA ONLINE,
MOBILE PLATFORMS.
ALONG WITH PRODUCT DIVERSIFICATION, INSURANCE COMPANIES ARE INVESTING IN TECHNOLOGY IN
CLAIMS MANAGEMENT TO BRING IN BETTER CUSTOMER EXPERIENCE AND CUT DOWN THE COST FROM
FRAUDS
JUN
2018

3. VIETNAM DIGITAL 2019
ALL THE DATA AND TRENDS YOU NEED TO UNDERSTAND INTERNET,SOCIAL
MEDIA, MOBILE, AND E-COMMERCE BEHAVIOURS IN 2019

15. INSURANCE INDUSTRY – DIGITALISATION TRENDS
BASED ON A SURVEY ADMINISTERED TO SENIOR TECHNOLOGY AND BUSINESS
PROFESSIONALS AT LIFE INSURANCE COMPANIES IN VIETNAM AT A ROUNDTABLE
CONFERENCE ORGANISED BY FINTELEKT IN MARCH 2017

16. TOP INDUSTRY ISSUES
CRITICAL ISSUES FACING THE LIFE INSURANCE INDUSTRY IN VIETNAM
BASED ON A SURVEY ADMINISTERED TO SENIOR TECHNOLOGY AND BUSINESS PROFESSIONALS AT LIFE INSURANCE COMPANIES IN VIETNAM AT A
ROUNDTABLE CONFERENCE ORGANISED BY FINTELEKT IN MARCH 2017
MAR
2017
▪ LOW POLICY PERSISTENCY / HIGH LAPSE RATES
WAS RATED BY 89% OF THE SURVEY RESPONDENTS
AS THE MOST CRITICAL ISSUE FACING THE
INDUSTRY.
▪ HIGH COST OF BUSINESS ACQUISITION WAS AT
SECOND PLACE, WITH 56% OF RESPONDENTS
RATING IT AS AMONG THE MOST CRITICAL ISSUES.
▪ 44% OF THE RESPONDENTS CONSIDERED
MISSELLING BY AGENTS / DISTRIBUTORS AS A
CRITICAL ISSUE.

17. TOP BUSINESS PRIORITIES
TOP BUSINESS PRIORITIES FOR COMPANIES FROM 2018-2019
BASED ON A SURVEY ADMINISTERED TO SENIOR TECHNOLOGY AND BUSINESS PROFESSIONALS AT LIFE INSURANCE COMPANIES IN VIETNAM AT A
ROUNDTABLE CONFERENCE ORGANISED BY FINTELEKT IN MARCH 2017
MAR
2017
IN KEEPING WITH THE CRITICAL ISSUES FOR THE
INDUSTRY, WHICH ARE LARGELY DISTRIBUTION
FOCUSED, THE TOP BUSINESS PRIORITY FOR
COMPANIES THAT PARTICIPATED IN THE SURVEY IS TO
CREATE NEW DISTRIBUTION PARTNERSHIPS OVER
THE NEXT TWO YEARS.
UNDERSTANDING CUSTOMER NEEDS BETTER,
LAUNCHING NEW PRODUCTS, AS WELL AS
IMPROVING OPERATIONAL EFFICIENCY WERE ALSO
CONSIDERED AS IMPORTANT BY THE RESPONDENTS.

18. FUTURE TRENDS
DISTRIBUTION CHANNELS EXPECTED TO BE SUCCESSFUL IN THE NEXT 3 TO 5 YEARS
BASED ON A SURVEY ADMINISTERED TO SENIOR TECHNOLOGY AND BUSINESS PROFESSIONALS AT LIFE INSURANCE COMPANIES IN VIETNAM AT A
ROUNDTABLE CONFERENCE ORGANISED BY FINTELEKT IN MARCH 2017
MAR
2017
AMONG THE INSURANCE COMPANIES THAT
PARTICIPATED IN THE SURVEY, 89% FELT THAT
AGENCY WILL CONTINUE TO BE THE MOST
SUCCESSFUL DISTRIBUTION CHANNEL IN THE
VIETNAMESE LIFE INSURANCE MARKET IN THE NEXT 3
TO 5 YEARS.
HOWEVER, BANCASSURANCE AND DIRECT BUSINESS
THROUGH MOBILE APP ARE ALSO EXPECTED TO
CONTRIBUTE TO BUSINESS ACQUISITION IN THE NEXT
3 TO 5 YEARS, SIGNALING A LIKELY TREND TOWARDS
MULTICHANNEL DISTRIBUTION

19. PLANS FOR DIGITALISATION
PLANNED INITIATIVES FOR LIFE INSURANCE COMPANIES
BASED ON A SURVEY ADMINISTERED TO SENIOR TECHNOLOGY AND BUSINESS PROFESSIONALS AT LIFE INSURANCE COMPANIES IN VIETNAM AT A
ROUNDTABLE CONFERENCE ORGANISED BY FINTELEKT IN MARCH 2017
MAR
2017
COMPANIES ARE ALREADY MAKING PROGRESS
TOWARDS DIGITALISATION, ESPECIALLY IN
DISTRIBUTION ENHANCEMENT, BY INVESTING IN
IMPROVING WEB PORTALS AND INCORPORATING
PAYMENT MECHANISMS.
A SIGNIFICANT MAJORITY AMONG THE COMPANIES
THAT PARTICIPATED IN THE SURVEY ARE PLANNING TO
INTRODUCE ONLINE SALES OF LIFE INSURANCE
PRODUCTS AND INTRODUCE A CUSTOMER APP TO SELL
AND SERVICE POLICIES WITHIN THE NEXT 1 TO 2 YEARS.

20. DIGITALISATION OF AGENCY
DIGITALISATION OF AGENCY FOR EFFICIENCY AND PRODUCTIVITY
BASED ON A SURVEY ADMINISTERED TO SENIOR TECHNOLOGY AND BUSINESS PROFESSIONALS AT LIFE INSURANCE COMPANIES IN VIETNAM AT A
ROUNDTABLE CONFERENCE ORGANISED BY FINTELEKT IN MARCH 2017
MAR
2017
AGENCY IS EXPECTED TO BE THE MOST IMPORTANT
DISTRIBUTION CHANNEL FOR COMPANIES IN THE NEXT
FEW YEARS.
67% COMPANIES ARE ALREADY IN THE PROCESS OF
PUTTING IN PLACE SOLUTIONS AIMED AT IMPROVING
AGENCY EFFICIENCY AND PRODUCTIVITY.
THE REMAINING COMPANIES PLAN TO INTRODUCE
MOBILITY SOLUTIONS WITHIN THE NEXT TWO YEARS.

21. THANK YOU
For more information, contact:
Hoang LEMINH – Content/Digital Marketing, Digital Transformation,
Phone: (+) 84 911 954 809
aida74vn@gmail.com