Digital Transformation Fuels Rapid Growth in the Insurance Industry

Transforming to digital insurance is considered a vital race for insurance businesses. Possessing technologies and activating digital transformation are the key for insurance businesses to open the door to diverse customers, creating a strong competitive advantage.

1. Insurance businesses race to digital transformation

According to the “Report on Insurance Industry 2023: Accelerate digital transformation, enhance customer experience”, insurance demand is anticipated to increase even as customer income is decreasing. This requires insurers to be more proactive in building new, highly personalized products and optimizing customer experience. Therefore, digital transformation is a mandatory requirement not only to create temporary competitive advantages, but also to ensure long-term operations in the future.

The report also points out that maintaining outdated systems is time consuming and costly (usually accounting for 70-80% of a company’s information technology budget), affecting work performance (insurance companies typically take 12-18 months to come up with an improvement proposal).

Thus, digital transformation is no longer an option but an inevitable task, forcing insurance companies to be involved in. This becomes even more urgent, especially in the context that the insurance industry is considered to be slower than some other industries in the digital transformation journey,

Applying technologies, insurance companies can solve many specific challenges, including management and operation model transformation, changes in product and service portfolio, as well as risk mitigation and information security when gradually moving traditional business activities to digital systems. From there, those companies can optimize and automate many internal processes, reduce errors, increase efficiency and reduce processing time, creating a better and more convenient experience for customers.

In particular, the application of new technologies such as machine learning or AI are opening up good opportunities for businesses to bring customers automated and personalized experiences at minimum cost.

Digital transformation helps insurance companies solve many specific challenges

Another favorable element that supports digital transformation of insurance companies is the issuance of Vietnam’s Law on Insurance Business 2022 (effective from January 1, 2023), which has some remarkable provisions, such as clearly defining the principles of online insurance sales for ensuring transparency, fairness, and customer information confidentiality, fully simplifying procedures for registration and approval of insurance products and services to further empower businesses, and helping shorten the time to market. It also forms a mechanism to connect data with other industries to support insurance businesses in creating a diverse ecosystem of products and services.

2. Automation enables insurance industry growth

The insurance industry is assessed to have significant room for digital transformation. Modern technologies, such as artificial intelligence (AI), robotic process automation (RPA), and electronic customer identification (eKYC), have great potential to be applied in every touchpoint of insurance business activities.

Understanding that situation and utilizing our 23 years of experience in collaboration and partnership with hospitals as well as companies in the healthcare industry, FPT IS has developed the Digital Insurance Platform – AZINSU, providing two main solutions: Health insurance appraisal and payment platform – AZINSU Claim and Digital insurance distribution platform – AZINSU Distribution.

The health insurance appraisal and payment platform – AZINSU Claim was developed to automate the process of handling health insurance claims and connect customers with insurance companies and hospitals/clinics on a single platform. The platform enables cooperation among parties and ensures the best values and services for the customers.

AZINSU Claim helps automate the process of handling health insurance claims

For customers, the solution helps shorten the time required to provide insurance guarantees for payment and process insurance claims, ensuring the accuracy of compensation decisions. This fosters greater trust in insurance companies’ decisions. Customers also benefit from the convenience of having medical, healthcare, and insurance compensation services integrated into a single platform.

For both non-life and life insurance companies, AZINSU Claim improves efficiency and accuracy in handling claims, reduces the risk of financial loss due to incorrect compensation decisions, healthcare abuse, and insurance fraud. Additionally, it forecasts loss and claim trends and analyzes data, enabling insurance companies to adjust their products and manage risks more effectively.

For hospitals, the solution enhances connections between hospitals and insurance companies, thereby helping hospitals support their patients better by reducing the financial burden on patients. This leads to increased patient satisfaction and access to healthcare services, especially in a context where the current voluntary health insurance participation rate in Vietnam is less than 1%.

In addition to these advantages, the Digital Insurance Distribution Platform – AZINSU Distribution, integrated with powerful digital solutions such as the akaBot robotic process automation solution and the FPT.IDCheck anti-fraud solution for digital identity verification, comprehensively addresses challenges in various aspects, including insurance product distribution, claim handling, process management, insurance operations management, and data processing and analysis.

Built on open APIs and a cloud platform, AZINSU Distribution allows partners to easily integrate it into any devices or platforms. Additionally, the solution enables insurance companies to swiftly bring new products to market and efficiently manage business operations and risks.

With 23 years of experience partnering with healthcare organizations, along with advanced technological capabilities and a team of leading experts in Vietnam, FPT IS aims to be a pioneer in helping the insurance industry apply cutting-edge technologies to fully automate its procedures. This will significantly contribute to the implementation of the strategy for developing Vietnam’s insurance market by 2030, as approved by the Prime Minister.

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Exclusively written by the FPT IS Technology Specialist

Ms. Dang Thi Lan Anh

Product Director of AZINSU Distribution

FPT Information System Corporation