Mar 24, 2018 / 17:42

Online insurance heating up in domestic market

The number of customers who choose online channel to purchase insurance products is increasing thanks to its convenience, industry insiders said.

There are currently three life insurance brands including Prudential, Manulife and PWD that are officially selling insurance via online channel. However, the insiders said that the market will see many more insurance companies such as Bao Viet, Chubb Life, Generali Vietnam or Hanwha to participate in the segment.
Prudential provides online insurance services
Prudential provides online insurance services
After officially offering personal accident insurance package to 100,000 customers of Tiki the product that is sold online only, very simple, without health assessment at the end of October 2017 and receiving positive feedback, recently FWD insurer has officially offered its online cancer insurance product. This is the first time in Vietnam that a life insurance product will pay the full amount of cancer insurance as soon as the disease is discovered.
Getting involved in the online insurance segment after Prudential and Manulife Vietnam, FWD is the first insurer to carry out 100 percent online sale procedure, not going through direct consultation by insurance agents and issuing online contract. It is known that electronic contract has been legally recognized. Therefore, customers just need to complete all information and confirm with an OTP code to complete the procedure.
Along with FWD, Manulife is currently selling on online channel the three flexible insurance packages including basic package, advanced package and comprehensive package with the premium of more than 600,000 dong to more than VND1.5 million. In this year, this insurer will also upgrade products with many attractive benefits and more convenience to customers.
Meanwhile, as the first insurer to sell insurance via online channel, Prudential is currently providing four simple insurance measures including Phu Dang Khoa Thanh Tai, Phu Bao An, Phu Tam An and Phu An Thinh Huu Tri with insurance benefit amounting to VND200 million and customers do not need medical examination. This insurer also expects that it will issue many new products to sell online in this year.
Regarding the trend on selling insurance product online and issuing life insurance contract in the near future, representative of a life insurer said currently, Vietnamese market has had many customers choosing online channel to purchase and this figure is expected to increase further.
In the context that the people’s awareness of insurance is enhanced, the distribution of insurance products via online channel is very potential if products and procedures are simple enough for customers.
Simplicity and fastness are the biggest advantages of online sales. Previously, the ownership of an insurance package often wasted a lot of time and procedure, the procedure is shortened now with just several clicks. This is a key factor in the modern society because the people now are busier, and their time for shopping is not much.
With online insurance, the contract issuing time will also be shortened to maximum 10 minutes to 20 minutes. Accordingly, the system will base on online records that customers provide to evaluate, approve and issue contract.
In the coming time, online insurance channel will no longer a testing method for insurers. Instead, this will be the playground that many businesses will drastically participate in.
According to CEO of an insurance company, who declined to be named, online insurance is the market trend and insurers cannot stand outside. 
“Our company is preparing for the final steps to officially enter this playground perfectly this year. Possibly, we will choose to sell insurance right on our website and cooperate with some other e-commerce sites. Generally, our way to develop online insurance will have difference compared to the market,” he said.