The Modernization of Vietnam's Insurance Industry - So that it's no longer a theory

It was one of the essays with the businesses' perspectives on innovation in the insurance of Vietnamese at the Scientific Conference on Vietnam's Insurance Industry CVII2021: Impact of Covid-19, Insurtech, Market and Policies on the morning of April 13, 2021.

The Covid-19 pandemic has affected various sectors of the economy, including the insurance sector, and it has gradually become an important issue and a catalyst for innovation. The pandemic has highlighted some inefficiencies in the traditional model of interactions between insurance companies and their customers. In particular, in the context of Digital Transformation, this change will inevitably bring challenges and opportunities for global value chains and insurance chains are no exception. Vietnam needs strategic steps to develop the insurance market in the new normal context.

Facing the issue mentioned above, the University of Economics Ho Chi Minh City (UEH) cooperated with the Insurance Association of Vietnam, Baominh Insurance Corporation to organize a Conference on Vietnam's Insurance Industry (CVII) with the topic “CVII 2021: The Impact of Covid-19, Insurtech, Market and Policies” on the morning of April 13, 2021, at Room B1. 203, Campus B - UEH (279 Nguyen Tri Phuong, Ward 5, District 10, HCMC).

The program attracted more than 80 delegates. On the guests’ side, the program was honored to welcome Mr. Ngo Trung Dung - Deputy General Secretary of the Insurance Association of Vietnam, Mr. Trinh Minh Duc - Business Development Director - Baominh Insurance Corporation, Mr. Vuong Viet Linh - Director of Vietnam Insurance Finance Online Company Limited (VIFO), Mr. Nguyen Cong Binh - Director of Bao Viet Saigon Company, Mr. Truong Quoc Hao - Director of Binh Duong Branch of Fubon Insurance (Vietnam) Co. Ltd; Mr. Hoang Quoc Cuong - Director of Business Development and Marketing - Global Insurance Company. On the side of the University of Economics Ho Chi Minh City (UEH), there were Dr. Dinh Thi Thu Hong - Head School of Finance, Dr. Le Dat Chi - Deputy Head of Finance Department, Assoc.Prof.Dr Tran Thi Hai Ly - Head of School of Finance, MSc. Nguyen Tien Hung - Insurance Program Director with lecturers from School of Finance.

An overview of the Conference

Delivering the opening remarks, Dr. Dinh Thi Thu Hong - Head of the School of Finance, shared: “After more than three months since the announcement of the conference, the school has received 30 influential papers to contribute to both theory and practice of the insurance market in general and the Vietnam insurance market in particular. I hope that the Conference will create a forum to exchange issues related to the Vietnam insurance market, especially focusing on urgent issues such as the impact of Covid-19, technological innovation in the field of insurance (InsurTech), developing new models (new services, new products, new distribution systems, etc.), thereby, proposing solutions to improve the state management policy to promote the developed market."

At the conference, delegates shared their speeches and exchanged 04 main contents surrounding the impact of Covid-19 on the insurance market; identify new technology applications in the insurance sector (Insurtech) and their effects on the formation of new business models and new services; identifying and evaluating the current state of the insurance market in the world and Vietnam; forecast recent development trends in the context of digital transformation and Covid-19; matters posed to the policies, laws, and regulations of state regulators over the general insurance market, and insurance institutions.

Mr. Ngo Trung Dung - Deputy General Secretary of the Insurance Association of Vietnam, presented his speech, "Overall assessment of the situation of Vietnam's insurance market and forecasts for the development trend."

MSc. Ho Thu Hoai - Lecturer of the UEH School of Finance, presented the topic "Shifting the number of insurance industries in the post-crisis Covid-19 landscape - Insurtech Ecosystem."

Mr. Vuong Viet Linh - Director of Vietnam Insurance Finance Online Company Limited (VIFO), presented the topic of "Modernizing Vietnam's Insurance Industry: So that it's no longer a theory."

Mr. Chung Ba Phuong - Chairman of TCA Company, presented the topic "What future for life insurance distribution channel - Bancassurance and agency."

MSc. Phan Quoc Tuan - Director of the Insurance Human Resource Development Institute, presents the presentation with the topic: "Law on Insurance Agents: shortcomings when applying to organizational agents and directions for amendment and supplementation."

To have a more detailed view of the Vietnamese insurance market and the transformations of Vietnamese insurance businesses after Covid-19, especially in the context of digital transformation, the conference held a Forum to exchange and discuss experts from the Insurance Association, leaders of insurance businesses and representatives of the School of Finance. According to Mr. Trinh Minh Duc, to successfully digitally transform the insurance industry, it is necessary to change the mindset from the perspective of senior leadership, building a strategic roadmap to the budget and people. Mr. Ngo Trung Dung forecasts that traditional insurance businesses must change to adapt in the next 10-20 years, in three directions: Applying technology, combining traditional companies with partners in areas such as mobile, digital network provision; service integration, not only financial but also other services such as convalescence, nursing home... product integration: health care with a variety of diseases,...

A forum for exchange and discussion for experts

Delegates asked questions at the conference.

Besides, the conference also took place the signing ceremony of cooperation between UEH and businesses with the participation of Dr. Dinh Thi Thu Hong - Head of UEH School of Finance and 05 businesses: Bao Minh Insurance Corporation, Vietnam Insurance Financial Online Company Limited (VIFO), Bao Viet Saigon Company, Fubon Insurance (Vietnam) Co. Ltd, Global Insurance Company. The content of the signing contract revolved around cooperation in the training, retraining, and development of human resources, notably the business semester program; scientific research and consulting; organize conferences, seminars, economic columns, scientific seminars and provide and exchange information.

UEH School of Finance signed a cooperation agreement with 05 businesses

The program brought about lots of helpful information about Insurtech and application trends that will help increase competitiveness and guide the development trend of insurance businesses while proposing solutions to complete state management policies that promote market development.