FPT accompanies the insurance industry to advance through technology

FPT recently made a significant impact at the Vietnam Insurance Summit 2024, a national forum on insurance organized by the IEC Group and the Insurance Association of Vietnam. The event gathered over 200 leaders from the Ministry of Finance, the Department of Insurance Supervisory Authority, and CEOs and executives from life and non-life insurance companies across the country.

The summit was held as part of the 2024 Insurance CEOs Conference, under the theme “Digital transformation journey in insurance with customer-centric approach”

FPT IS Chairman commits to assisting insurance companies in building a happy insurance culture

In his opening remarks, Mr. Nguyen Xuan Viet, Chairman of the Insurance Association of Vietnam, emphasized that Vietnam’s insurance industry is entering a promising phase with significant opportunities for robust development. The average insurance premium revenue to GDP is forecast to reach approximately 3.5% by 2025. Digital transformation is crucial for maximizing this potential, enhancing competitiveness of the insurance industry, innovating products, meeting diverse customer needs, and providing better experiences with more utilities in the digital era.

Mr. Ngo Viet Trung, Director of the Department of Insurance Supervisory Authority under the Ministry of Finance, emphasized, “Statistics show that Vietnam ranks high in the Asia-Pacific region, with 55% of the population using smartphones and having internet connections. Despite this, the insurance industry still faces significant challenges in digital transformation. This includes transformation of management models, product and service structures, prevention of financial risks, cybersecurity, and protection of customer information. Consequently, businesses must intensify efforts to develop digital transformation strategies that align with their resources and create value, ensuring the rights of insurance participants.”

As representative of the only Vietnamese technology company to speak at the plenary session, Mr. Tran Dang Hoa, Chairman of FPT IS, shared FPT’s insights on the insurance industry, technology solutions and proposals for fostering a safe and happy insurance culture in his presentation “Co-create the Next in Insurance by AI”.

Mr. Tran Dang Hoa, Chairman of FPT IS, spoke at the event.

Mr. Hoa stated, “Vietnam’s insurance industry has significant growth potential. We have a significant advantage with young population of 100 million people. FPT believes that Vietnam will overcome the middle-income trap and achieve success similar to other ‘chopstick-using countries’ like Korea, China, and Japan. As incomes and living standards rise, the demand for insurance will increase. Over the past 30 years, with rapid expansion of the Internet, mobile technology, and e-commerce, I believe we will clearly see breakthroughs in the insurance industry.”

Discussing the picture of the insurance industry from a technological perspective, Mr. Hoa noted, “Following Wave 1 of digitalization and Wave 2 of process optimization and smartening, the insurance industry is now entering the third wave – the era of Data & AI. Previously in the industry, technology served the business, and CEOs viewed it as an IT task. Now, technology is the business. Insurance companies and leaders must fully embrace and lead this technological wave to drive development.”

FPT is prepared with products and services to assist customers through each phase of the roadmap, from digitization, process optimization to datafication, turning data into business. “Over the past 25 years, we have focused on the second step – process optimization, and the transition to the third step will be the definitive turning point,” affirmed Mr. Hoa.

Chairman of FPT IS commits to assisting insurance companies in building a happy insurance culture.

In Vietnam today, businesses are at varying stages of digital transformation. Some are still in the initial phase, implementing basic paper processes. For these companies, FPT provides tailored roadmaps for gradual transformation and advancement. Leveraging its ecosystem of global partners, including AWS, SAP, and Google, along with a suite of “Made by FPT” solutions, FPT designs the most suitable solutions to meet specific needs of each field and customer.

To address some key challenges in the insurance industry, Mr. Hoa provided typical examples based on his experience with customers in both life and non-life insurance sectors, such as Hanwha Life, Shinhan Life, Prudential, FWD, PJICO, AIA, Cathay Life, and Fubon Life.

Specifically, AI plays a crucial role in addressing problems in the insurance industry during the third wave. Key operations such as underwriting, assessment, approval, fraud prevention, and detection can be enhanced through the use of robots and AI. This has transformed the way insurance companies operate.

For example, in the TPA (Third Party Administration) business, TPA units often manually process a large volume of daily claim dossiers, which can lead to errors and insurance abuse in complex and sophisticated forms. To address this, FPT IS has researched and developed the AZINSU solution, leveraging over 25 years of experience in the healthcare industry. The solution helps save 50% of resources, reduces processing time by 30%, and minimizes fraud. Previously, patients had to bring health records back to the company to make claims, resulting in long waiting times and potential errors and fraud. With AZINSU, patient claim records can be transferred directly from the hospital to the insurance company using hundreds of pre-designed scenarios.

Besides AZINSU, Mr. Hoa also introduced the Robot Process Automation solution akaBot that matches the quality of the world’s top-tier RPA products, the FPT Confidon solution for automatic underwriting and assessment using AI based on machine learning mechanisms from historical data, and the FPT.AI Virtual Agent that replaces humans in performing tasks such as customer care, scheduling reminders, and gathering customer insights.

With its comprehensive ecosystem, FPT desires and proposes to collaborate with insurance companies to establish a modern and healthy insurance culture akin to that of major countries. “In Japan, people spend an average of $400 per month on insurance, thanks to the quality care services and positive experiences provided by insurance companies. We currently have an ecosystem of over 1 million end users. Our Internet and pharmacy services can reach and serve an additional 40 to 50 million users. This is substantial customer base that we can jointly utilize, building a safe, healthy, and happy insurance culture,” pledged FPT IS Chairman.

FPT experts solve “pressing” problems in the insurance market

At the summit, FPT experts provided comprehensive insights on “pressing” issues in digital transformation within the insurance industry.

During Conference Session 1, Mr. Le Hoang Duong, Director of the Cyber Security Center at FPT IS, discussed “Data Security in the Digital Age: Risks and Solutions”.  He highlighted notable findings from an IBM report covering March 2023 to February 2024, which revealed that over 604 organizations experienced data breaches, with the average cost of a breach amounting to approximately $5 million.

Mr. Le Hoang Duong, Director of Cyber Security Center at FPT IS, shared insights on data security.

Mr. Duong also noted that 2023-2024 has been marked by a significant increase in cyberattacks on Vietnamese organizations and businesses, including insurance companies. In the insurance industry, customer information is the most important data. It is also a target for hackers attacking businesses in general and insurance companies in particular. The main methods of initial attack include phishing, password theft, and exploiting faulty configurations in third-party systems.

As a technology partner, FPT recommends a standard roadmap for addressing prioritized key issues, such as data backup, to help businesses implement effective defense plans. Mr. Duong also introduced FPT IS’s comprehensive sets of security solutions and services. The first set includes solutions for improving defense capacity by assessing maturity levels and providing consultations on information security roadmaps based on investment phases, tailored to the resources, financial capacities, and current information security status of businesses. The second set are solutions focusing on proactive information security risk detection and handling. The third one includes solutions ensuring risk compliance with international standards. The fourth solution set manages the entire data lifecycle. Finally, there are solutions for training and raising human awareness.

During Conference Session 2, Mr. Duong Le Minh Duc, Director of AI Strategy Consulting Center at FPT Smart Cloud, addressed the topic of “Diversifying digital insurance packages to meet new consumer needs using new technologies like Generative AI.”

FPT and its partner Peak 3 showcased the “Co-create the Next in Insurance” solution ecosystem at the summit’s exhibition area.

At the technology exhibition, FPT and its partner Peak 3 showcased the “Co-create the Next in Insurance” solution ecosystem which supports insurance companies to leverage technology to drive innovation and create “the Next” in operations and business:

(1)   Next-level experience powered by AI

(2)   Next-gen Infrastructure and Security

(3)   Next Insurtech Hub

(4)   Next Intelligent ecosystem

(5)   Next-gen Insurance Cloud Platform

The event featured several outstanding products and services that captured the attention of the insurance industry leaders. These included the Digital Insurance Platform (AZINSU), the suite of solutions designed to promote insurance business growth (FPT.InsuranceX), the artificial intelligence platform (FPT.AI), the customer experience solution suite (FPT CX Suite), the Digital Office solution suite (comprising FPT.eInvoice, FPT.Contract, FPT SPro, and akaBot), FPT Cloud Platform and Peak3’s Cloud-based insurance core system.