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Insurance industry sees IT breakthrough

The application of information technology (IT) is expectedto significantly improve the insurance industry in the 2016-2020 period, according to the Ministry of Finance’s Insurance Supervisory and Authority. 

Insurance industry sees IT breakthrough

Prudential never stops improving themselves, especially when it comes to experimenting with new advanced technology, in order to create an excellence experience for their clients.

Many insurance firms are trying to catch up with this trend and Prudential Vietnam is the pioneer. 

“The 2016-2020 period is a crucial phase for the insurance industry to complete its goals,” Mr. Phung Ngoc Khanh, director of the Insurance Supervisory and Authority, told Vietnam Finance.

Accordingly, the goal of the insurance industry is to havetotal revenue accounting for 3-4% of the country’s GDP by 2020. At the same time, the amount of insurance fund will increase by 4,5 times. Moreover, the total economic fund will also increase by 3,5 times. The funds contributed to the governmental fund will also rise by 4 times.

By 2020, the insurance market will also completely comply with the management and supervision policies regulated by the Association of International Insurance Management. 

Khanh believed that the application of IT is a significant step to develop the insurance industry even further. Through the advanced information system, customer services, and distribution system, as well as the information processing procedure of insurance firms will be simplified, significantly improving effectiveness when interacting with clients.

However, the Ministry of Finance’s Insurance Supervisory and Authority also expressed concerns over the functionality of this newly upgraded system. 

According to Khanh, the implementation of IT in insurance industry is lacking the consistency required. While the application of IT in the insurance industry is common worldwide, in Vietnam, the system has yet to meet international standards.

For this particular reason, the management agencies hope that insurance companies in the country will further develop the system, making it more complete and functional. 

On a positive note, it is a great sign that many insurance companies are taking significant steps in implementing IT in their business, creating hi-end services and increasing customers’ satisfaction. 

For Prudential Vietnam, the firm never stops improving itself, especially when it comes to experimenting with new advanced technology, in order to create an excellent experience for clients.

Prudential Vietnam’s Deputy General Director of Technology - Mr. Dao Thanh Tu - said: “Prudential Vietnam has been strongly investing in technological application. In October we put into operation a new work-flow system, which costs up to $3 million.”

“Additionally, the call center, customer service, and customer portal have also been systemized and have started to show significant improvement.  By experimenting with the e-commerce system for our products, Prudential Vietnam has reached a significant milestone for the insurance industry, becoming an exceptional selection for customers to explore their insurance options online. Starting from now on, the insurance industry will continue to venture into the field of information technology, and this is certainly a necessary trend that we should catch on,” Tu said.

Thanks to the tremendous effort to develop its products as well as taking advantage of hi-end technology to create an exceptional experience for clients, Prudential Vietnam has been able to earn impressive success. Specifically, for the first half of 2016, Prudential Vietnam’s revenue accounted for 26,55% of the total revenue of the insurance industry in Vietnam. 

Prudential Vietnam is also very effective in paying reinsurance for policyholders with the amount of reinsurance for the first six months of the year goes up to VND2 trillion, making up to 40% of the total reinsurance of the industry. 

“It is undeniable that this is the age of digital technology. Therefore, not only can we constantly improve our products and services, we always strive to use the most advanced technology in our business. As our society develops, the needs of each individual become more and more diverse as well, and as a company, we also aim to create a variety of products that can be suitable for each individual. We believe that with our current resources and our endless effort to bring the best services to our customers, Prudential Vietnam will always be the number one choice for every Vietnamese family,” Tu said.