Personal Experience with Digitalization and the Future of the Life Insurance Industry
I am a financial consultant in the life insurance sector in Vietnam. With my experience as both a consultant and a business team leader, I have witnessed the robust development of digitalization in the insurance industry. These changes have not only improved operational efficiency but also provided new experiences for customers when signing insurance contracts in Vietnam.
I began my consulting career in 2017, and at that time, the company was still implementing a direct consulting process, submitting insurance application requests, and issuing contracts on paper. However, in 2019, the company adopted a new technology application called ePOS, aimed at enhancing the insurance purchasing experience for customers. With this fully automated solution, consultants can submit customer insurance application files online anytime and anywhere; and customers can receive immediate confirmation from the company.
To purchase an insurance product, customers only need to complete the online insurance application form directly on the ePOS application. The application will be automatically assessed, and customers can make payments directly through the app. Shortly after, customers receive an electronic contract via email, significantly reducing the time required to purchase an insurance contract compared to the several days typically needed with traditional methods.
Additionally, the company has pioneered the life insurance industry by implementing a fully automated claims process known as eClaims. With the eClaims application, customers can submit claims online anytime and anywhere, within one minute, without needing original documents, and almost instantly receive feedback on their claim results from Manulife.
The implementation of digitalization accelerated rapidly during the COVID-19 pandemic, when everything was nearly frozen, and we could only communicate via social media platforms. We also initiated online customer consultations and completed automated contract monitoring. Customers can proactively track their contracts and request claims, as well as pay premiums through an app installed on their phones. Furthermore, digital tools such as online meeting platforms and internal communication applications have helped me maintain my work more effectively.
The Future of Life Insurance Industry
The digitization process is occurring robustly and has a profound impact on many sectors, including the insurance industry. These changes not only affect how insurance companies operate but also reshape customer experiences and risk management.
One of the most noticeable impacts of digitization is the ability to collect and analyze big data. This data analysis allows companies to gain a better understanding of customer behavior and needs, enabling them to personalize insurance products and enhance customer service.
Secondly, artificial intelligence (AI) technology is becoming an important tool in the insurance sector. AI not only helps automate the claims processing workflow but also improves risk assessment capabilities.
Moreover, the adoption of blockchain technology provides a secure and transparent platform for insurance transactions, helping to minimize fraud and enhance customer trust. Furthermore, smart contracts can automatically execute contract terms when certain conditions are met, thereby shortening processing times and reducing operational costs.
However, the digitization process also poses many challenges for the insurance industry. One of the biggest challenges is data security. As more personal information is collected and stored online, the risk of cyberattacks and data breaches increases.
Finally, digital transformation requires a shift in mindset and culture within organizations. Employees need to be trained to adapt to new technologies and develop the necessary skills to work in a digitized environment. This not only helps enhance productivity but also creates a more flexible and innovative workplace.
In summary, the digitization process is opening up numerous opportunities and challenges for the insurance industry. These changes not only influence how insurance companies operate but also impact the lives and work of employees as well as customer experiences. To maximize the benefits of digitization, insurance companies need to proactively adapt and innovate while ensuring that issues related to security and organizational culture are effectively addressed.
Risks of an Open Digital Society and the Impact of GDPR on Work
Assessing the risks of an open digital society is an important topic, especially in the context of rapidly advancing technology and the increasing value of personal data. Data protection reforms, particularly the General Data Protection Regulation (GDPR) implemented in 2018, have had far-reaching effects on personal lives and work, including in the insurance sector.
Impact on Personal Lives:
Positive:
Data Control Rights: GDPR has empowered individuals with greater control over their data. You have the right to request the deletion of personal data or inquire about how your data is being used.
Improved Security: Companies must comply with stricter data security regulations, helping to protect personal information from cyberattacks and data breaches.
Negative:
Access to Services: Some companies may become more cautious in collecting and processing data, leading to limitations on certain services or requiring more information from users.
Compliance Pressure: Individuals and businesses may feel pressured by complex compliance requirements, making it challenging to understand and exercise their rights.
Impact on Work in the Insurance Sector:
Positive:
Increased Trust: Customers may feel more secure knowing that their information is better protected, thereby fostering trust in insurance companies.
Improved Claims Processing: Insurance companies can responsibly use data to enhance claims processing, allowing customers to receive quicker and more effective service.
Negative:
High Compliance Costs: Insurance companies must invest in systems and processes to comply with GDPR, which can lead to higher costs and impact service pricing.
Limitations on Data Collection: Restrictions on data collection may reduce the ability to analyze and predict risks, affecting pricing and the development of new insurance products.
In conclusion, data protection reforms have brought numerous benefits but also pose significant challenges for both individuals and businesses in an open digital society. Finding a balance between protecting individual rights and meeting business development needs is essential in the current context.
3. Experience with ChatGPT – Artificial Intelligence in the Insurance Industry
To enhance my understanding of the role of artificial intelligence (AI), I conducted an experimental study with ChatGPT, a conversational AI model developed by OpenAI. During this process, I posed several questions related to the field of insurance consulting, including:
- “How to choose the appropriate insurance solution?”
- “What is the process of consulting and signing an insurance contract?”
- “What are the procedures for claiming insurance benefits?”
The responses from ChatGPT demonstrated clarity and a logical structure, aligning with the practical processes I have applied in my work. This indicates that AI can play a significant role in supporting training, research, and guiding internal processes.
However, I also noted some limitations in ChatGPT’s capabilities. This model cannot provide detailed information about the specific benefits of each product or offer precise advice for individual customer cases. Furthermore, ChatGPT lacks the necessary sensitivity required for nuanced communication with clients. Therefore, while AI can assist in certain aspects, it cannot fully replace the experiences of direct interaction with customers—especially in the insurance sector, where trust and empathy are of utmost importance.
4. Self-Assessment and Future Learning Direction
Through completing this exercise and engaging with various topics such as digitization, artificial intelligence (AI), cybersecurity, General Data Protection Regulation (GDPR), and the concept of an open digital society, I have come to realize that digital transformation is not merely a trend; it is, in fact, an essential change across all sectors, particularly in the insurance industry.
With practical experience in the role of a consultant, I have gained a clear understanding of how digitization can streamline the application process, automate contract issuance, enhance customer experience, and create a more efficient working environment. Additionally, I have recognized the importance of protecting personal data in establishing trust with clients. GDPR is not just a legal framework but also a guiding principle for managing customer data transparently and responsibly.
Moreover, I acknowledge that while an open digital society offers numerous opportunities, it also poses risks related to privacy, data misuse, and information security. These insights have inspired me to deepen my knowledge of emerging AI technologies, data analytics, cybersecurity, and personal data governance, in order to adapt more effectively to the rapidly evolving digital landscape.
Blogs I have commented on: