Online insurance-a new way to woo customers

Due to difficult business, some insurance companies are struggling to access customers. Online insurance sales are the new method for them to improve the current performance.
Pham Truong Khanh, Marketing Director of Liberty insurer said that the generally difficult economy context has affected the most sectors and industries.

Despite the non-life insurance premiums in Jan-June grew 22% year on year, in which the growth proportion of Liberty was high, the firm started to access online sales channel which had been launched for market exploration last September.

But till now, there have been only 500 customers buying Liberty’s insurance products via the method, accounting for 2% of its total number of traditional customers.

He added that by 2012, Liberty attracted at least 2,000 new customers from online sales.

Since August early, BIC (BIDV Insurance Co) also joined the race of supplying online insurance services with a view to optimize the method of accessing customers through various channels.

To buy online insurane products, customers need to browser website, select insurance producr, fill in required information from which the system will automactically charge fees after customers select method of payment. The transaction is completed. “We commit that the time from ordering till receiving insurance certificate is no more than one business day”, BIC official confirmed.

The direct shopping habit of most Vietnamese people is a barrier for online sales. Companies who do business with prestiges such as insurers will have to make big efforts to overcome that barrier. The sentiment of hesitance in believing in virtual environment in Vietnam is hampering online sales of insurers, he noted.

Therefore, in short-term, BIC has not expected much in revenues and profits and online sales will be considered as a strong point in services, contributing to the broadcasting of BIC trade name.

In long-run along with the development of electronic commerce as well as change in consumer habit, BIC expects that the online sales will bring in a significant revenue compared with other traditional sales channels.

“The revenue proportion on total figure of BIC is targeted at 10% by 2015”, according to the official.

In line with Cimigo market survey company, Vietnam has 26.8 million internet users representing for 31% of the country’s population. Vietnam also is the nation with highest growth of internet users in Asia. It is the potential market for e-commerce companies, especially when online shopping becomes popular.

Despite economic difficulties in fist half of 2011, the Vietnamese insurance market still keeps fairly high growth rate, citing data of Ministry of Finance.

Total insurance premium of 54 insurance businesses was estimated at 17.362 trillion dong, up 22% year on year. They compensated and paid to customers around 5.892 trillion dong.

Noticeably, Prudential Vietnam reached new insurance premium of over 600 billion dong, rising 21.3% over the year earlier.

PVI led the market in first six months with total premiums of 2.527 trillion dong pacing a growth rate of 28% and accounting for 25% of market share, followed by Bao Minh with 1.157 trillion dong, BIC with the revenue growth of 50%…

Economists said that in such a high inflation context, life insurers have to continue facing customers’ stop in paying fees. Because many Vietnamese people see life insurer is a saving method. – Vietbiz24

Tags: Vietnam insurance, Vietnam insurance industry, Vietnam insurance market