Vietnam Actuarial Conference unveils new era of insurance industry

Phương Tiến Minh, CEO of Prudential Vietnam, presented his remarks at the Vietnam Actuarial Conference 2023 held in HCM City on November 23. — Photo courtesy of the company

HCM CITY — Some 350 local and international experts engaged in discussions over a new era in Việt Nam’s insurance industry at the Vietnam Actuarial Conference 2023 hosted by Prudential Vietnam Assurance Private Limited in HCM City last week. 

Themed “The Next Insurance Era”, the largest annual event in the insurance industry offered an in-depth overview of Việt Nam’s Insurance market through four presentations by experts from RGA, Gen Re and Pacific Life Re from the US, and Swiss Re from Switzerland.

Discussion topics included an analysis of actuaries and the industry’s role in responding to customers’ needs, Bancassurance 2.0, building the next generation of products and improving customer journeys, applying modern analytics in insurance to optimize the underwriting process, and discovering Machine Learning for underwriting and insurance risk prediction.

In her opening remarks, Lý Thị Thu Thủy, head of the Life Insurance Department at the Insurance Supervisory Authority, Ministry of Finance, said: “This is indeed a valuable opportunity for professionals in the actuarial field to stay updated on industry knowledge and glean insights from peers and international experts. Furthermore, it serves as a platform for networking, learning, and fostering a shared passion for the actuarial profession.”    

Amid fluctuations in 2023, VAC 2023 emerged as the pivotal event in the industry, fostering cooperation to rebuild market confidence and initiate a new era towards sustainable development, according to the organiser.

“The challenges and changes in 2023 have inaugurated a new era for the life insurance industry in Việt Nam, particularly in the wake of the recent implementation of Circular 67 under the Insurance Business Law on November 2. This new era calls for collaborative efforts from all stakeholders to ensure sustainable growth and emphasize a central focus on customers,” said Phương Tiến Minh, CEO of Prudential Vietnam.

A highlight of the conference was the panel discussion on “Unlocking Sustainable Growth: ESG Application in Life Insurance” – an in-depth panel discussion that explores ESG strategies within the insurance industry, delving into ESG practices among businesses in Việt Nam and drawing lessons from developed markets. 

“As we collaborate with the Vietnamese Government to achieve the 2025 target of 15 per cent of the population participating in life insurance, it is imperative for insurance entities, particularly actuarial departments and regulators, to focus on the aging demographic (the silver segment), those aged 65 and above. Việt Nam is undergoing a rapid demographic shift towards an aging population, with an anticipated additional 17 million elderly individuals by 2050. This demographic group necessitates protection and is intricately linked to the social aspect of ESG,” said Elena Quek, Head of Business Development – Southeast Asia at RGA International Reinsurance Company.

Conversely, customers are increasingly recognizing the significance of ESG. They begin to prefer insurers offering ESG-linked products, expressing their viewpoints, ethical objectives, and values through financial choices, she said.

Customer preferences are shaping the market, prompting insurance companies to introduce new ESG-related policies and enhance transparency to meet customer expectations. Moreover, advancements in technology – particularly in data analytics – are boosting the efficiency of insurance companies in evaluating risks and ESG opportunities, enabling more thorough investment decisions and assessments, she added.  

At VAC 2023, life insurance companies and their partners joined forces to highlight the importance of technological transformation, prioritizing customer-centric approaches, and advancing sustainable development through the adoption of ESG strategies. — VNS