Life insurers expect to enter full-fledged recovery period next year

Many life insurance companies have focused on innovation, improving product quality and customer service as they prepare for future growth.

Bae Seung Jun, General Director of Shinhan Life Vietnam, sees the current challenges in the industry as an opportunity for improvement. "We expect to enter a full-fledged recovery period next year, focusing on expanding sales efficiently," he said.

Bae Seung Jun, General Director of Shinhan Life Vietnam. Photo courtesy of Shinhan Life Vietnam

Since early 2024, life insurers have been heavily investing in digital transformation to enhance transparency, streamline the insurance application and claims process, and foster a culture of ethical sales practices. Simplifying contract terms and creating customer-centric products are also key priorities.

Bae added, "The current difficulties in the insurance industry may serve as a catalyst to restore customer trust. Companies are focusing on reorganizing internal systems and shifting from quantitative to qualitative growth."

Shinhan Life Vietnam, with over three years in the market, is dedicated to developing products that cater to Vietnamese customers' needs. The company not only focuses on creating specialized products for various channels with a focus on protection but also develops online products that make it easy and convenient for anyone to sign up for life insurance.

The Korean life insurance company is also continuously developing applications for online payment and insurance policy information management, allowing customers, agents, and employees to conveniently access and utilize its insurance services.

Shinhan Life Vietnam has over 100 employees and more than 200 consultants working across all distribution channels. Photo courtesy of Shinhan Life Vietnam

To regain customer trust, a key factor in the recovery of the life insurance market, companies are investing in improving the quality of their advisory teams and implementing stringent quality control processes. This ensures that customers receive the highest level of service and benefits.

Bae highlighted that Shinhan Life operates in South Korea, where customers are highly meticulous and detail-oriented. The company conducts periodic internal control and sales compliance checks across all sales channels.

"We also systematically implement the introduction, training, and performance analysis of agent organizations to improve service quality. Moving forward, we plan to further strengthen comprehensive sales training in the future, so that a sound sales culture can be established," Bae added.

According to the Insurance Association of Vietnam, around 10 million people, or 10% of the population, currently hold life insurance policies. The government's goal is to increase this to 15% by 2025, but this faces challenges due to market conditions and incomplete information about life insurance.

Shinhan Life Vietnam has actively promoted the importance of life insurance through various media channels, activities, and CSR initiatives. Photo courtesy of Shinhan Life Vietnam

Insurance companies, in collaboration with the Insurance Association, have been running communication campaigns to raise awareness about the role of life insurance and what to consider when entering contracts. Bae emphasized that Vietnam remains a young market for life insurance, with limited public understanding. Therefore, he believes all insurers must collaborate to convey the true value of insurance and its benefits in reducing health risks and protecting families from unforeseen disasters.

The devastating impact of super typhoon Yagi, with estimated claims reaching VND10 trillion (US$396 million), underscores the importance of insurance in mitigating risks. Shinhan Life Vietnam actively promotes the value of insurance through initiatives like offering free policies, supporting children with leukemia, and sponsoring education funds.

Looking ahead, Bae shared that Shinhan Life Vietnam will continue to expand its products, systems, and infrastructure to suit various sales channels. The company also plans to enhance its operational capacity to support growth while engaging in CSR activities to contribute to the community.