“We realize there are still many opportunities in participating in the life insurance market in Vietnam. Mirae Asset Prévoir have always adapted our model to the requirement of the market and Mirae Asset Prévoir will continue on the same way while keeping the ultimate aim of protecting people against the hazards of the life" stated Mr. Khamsaya Soukhavong, Chairman cum CEO of Mirae Asset Prévoir Life Insurance Company in the interview with Dau Tu Chung Khoan Newspaper.

 

Mr. Khamsaya Soukhavong - Chairman cum CEO of Mirae Asset Prévoir Life Insurance

 

Congratulations on returning to the top leadership position of Mirae Asset Prévoir. What opportunities do you see for the life insurance market in general and Mirae Asset Prévoir in particular after the unprecedented changes in the insurance industry in Vietnam?

Our presence in Vietnam has started at the end of 90’s with a representative office and we have obtained the establishment and operation license in 2005. We are grateful to have presence for more than 20 years in Vietnam.

We have seen the fast and positive evolutions in Vietnam throughout years and their impacts on the young and dynamic population. Large segments of today’s Vietnamese young population are expected to graduate towards an emerging affluent class with significant increases in disposable income and needs for savings and protection.

We have always adapted our model to the requirement of the market and we will continue on the same way while keeping the ultimate aim of protecting people against the hazards of the life. 

In summary, there is great long term opportunity in participating and helping grow the life insurance sector in Vietnam. The core indicators and ratios across the industry, are in our favor. The market is changing fast, and provides room for a new initiatives to carve out an attractive niche.

 

The limitations that have been revealed in selling insurance through banks force insurance companies to reconsider and make adjustments in the way they cooperate with partners through the insurance sales channel. Banks will no longer be "the goose that lays golden eggs" for insurance. What do you think about this statement?

At a macro level in Vietnam there is much room for growth in both credit and fee income on the bank side. The Bancassurance market in Vietnam is still relatively small - but developing fast during the recent years. Agency currently dominates as the main distribution channel for most insurers.

Currently banks in Vietnam are still heavily reliant on interest income. The contribution of fee income to the topline is still low compared to other ASEAN banks. Insurance will be a main driver of this trend.

The market is still in the early stages. Banks and insurers are exploring the best ways to work together. With the new framework, the quality of the advices to the customer will be the main driver. Getting bancassurance right is great challenge.

It takes a comprehensive understanding of the target segment, significant commitment from both insurer and bank, and dedication to make it work.

If done right, Bancassurance can generate highly attractive returns for all stakeholders and especially for the customer.

 

Currently, along with restructuring sales channels and reviewing the terms of insurance products, insurance companies in the market also continue to invest in improving the processes of a policy. Insurance policies become more "comfortable" from the time of entering into the policy to paying insurance benefits quickly with modern technology... At Mirae Asset Prévoir, these processes have been and are being implemented. How will it be simplified sir?

Mirae Asset Prévoir did a significant IT investment in recently by acquiring a new core system and will continue to add new technologies to improve and to update our process to match with the new requirement of the regulations.

We will continue to invest on our biggest assets which are competencies and Human resources. The coming years will be very exciting and there are much more rooms for initiatives, innovations to make life insurance products more simple and affordable for everyone.

To increase the trust on life insurance products we need both technologies and the human factor: Having a professional financial advisors explaining clearly the benefits of our products is key for a sustainable growth.

New technologies will be implemented to enrich the customer experience, to support quality control and to ensure the compliance.

 

There are some opinions that at the end of the second quarter and possibly in the third quarter of this year, the life insurance market can recover, but this also depends on whether consumer economic indicators recover. Strong recovery or not? How do you see the recovery of the Vietnamese life insurance market this year as well as in the coming time?

The Vietnamese insurance business is anticipating a prosperous year in 2024 with significant financial targets. In particular, overall industry assets are expected to reach 1,004,421 billion VND, representing a 9.97% increase over 2023.

The insurance business also contributes to the economy favorably, with an anticipated investment capital of 850,264 billion VND, an 11.51% growth over the previous year. Total insurance premium revenue is forecast to reach 243,472 billion VND, with life insurance accounting for 163,785 billion VND (a 5% increase).

This expansion demonstrates the industry's robust recovery and progress following the challenges of 2023 and the pillars of life insurance sector are solid: demography, penetration rate, CPI under control, growth rate and a new framework to ensure a sustainable growth.

 

Igloo's recent research suggests that the main trends of the insurance industry in 2024 will continue to drive the performance of the insurance value chain, in which artificial intelligence (AI) and blockchain will become the foundation of the insurance industry, Vietnam is no exception. How will these trends be applied at Mirae Asset Prévoir, sir?

Life insurance is a traditional sector which most of operational sale process are quite standard because regulated. We can foresee many opportunities to use AI at different steps of each process: AI could provide information to the prospects and customers, identify a niche segment from our portfolio to provide business opportunities to our sale network.

The potential of using AI in our value chain is indefinite but the implementation of such initiatives should be in line with the regulation and under the supervision of the Authorities.

 

Mr. Khamsaya Soukhavong has been appointed as Chairman of Members’ Council cum Chief Executive Officer, effective on April 16th, 2024 follow office letter No. 3963/BTC-QLBH Ministry of Finance.   Mr. Khamsaya Soukhavong has a French nationality and holds the Master degree in Corporate Finance. Mr. Khamsaya Soukhavong joined Prévoir Vie Groupe Prévoir in Paris in role of Head of International Development in 2011. He worked closely with the Board of Prévoir Group as a key advisor with regard to business strategy. In 2014, Mr. Khamsaya Soukhavong was appointed as Vice Chairman of Prévoir Vietnam. Mr. Khamsaya Soukhavong was Chairman cum Chief Executive Officer and the legal representative of Mirae Asset Prévoir from 2017 to 2021.   He has over 25 years of working experiences in the finance and insurance industry, Mr. Khamsaya Soukhavong is going to lead Mirae Asset Prévoir in line with our company's overall strategic direction and long-term vision.

 

 

Source: <tinnhanhcungkhoan.vn>