Insurance market keep vibrant thanks to new product introduction

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  • Sep 23, 2014

After a series of new insurance products launching in the first quarter III/2012, insurance market is prepared to receive a wave of new insurance products in late 2012 and early 2013.

The industry experts said that new product launching is the direction to help insurance companies overcome current economic downturn.

In fact, despite fierce competition among insurance companies, but individual insurance in Vietnam is still a very attractive market segment. The obvious demonstration is that in spite of economic difficulties, life insurance has grown more than 10% and sales of new individual insurance has contributed most to this growth.

According to insurance experts, all over Asia, individual life insurance market has a lot of potential and insurance owner penetration is still very low. The gap between the needs to be covered and individual insurance product is big. That is the reason why businesses still develop personal insurance.

CEO of a foreign life insurance company said that the higher income population earns, the bigger insurance demand increases. In Asia, the needs to be protected against the risk value more than $ 4,000 billion while the health cover demand is about 75,000 billion.

"The opportunity for insurance companies is very large, so businesses need to enhance market penetration," the CEO said.

Representative of a new insurer who has recently launched two relatively new products said the interest of customers in these products is very high, although they are not really acquainted. But in the future, such products will continue to introduce in the market and will be customized to fit with local customer and Vietnamese market.

However, it is recommended that insurance companies need to map out the cautious and careful step to avoid insurance fraud through the favor of insurance products, especially those related to health care insurance... Preliminary statistics of a large life insurance business showed, in 2011, the total amount of compensation paid for the hospitalized cases up to hundreds of billions dong, almost doubled compared to 2010. In particular, the frequency of hospitalization and the payment amount for each customer has increased unusually in some regions and provinces in the north... And there was some life insurance companies have to stop or limit the sale of health care insurance in such cities and provinces due to much fraud.


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