In the digital transformation era, Vietnam’s insurance sector faces significant challenges in improving operational efficiency and customer experience. Insurance automation is becoming a key factor in helping insurance companies enhance performance and achieve sustainable growth.
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Technology application and digital transformation in Vietnam’s insurance sector
Compared to other sectors, the insurance industry in Vietnam is lagging behind in digital transformation. The industry has yet to realize substantial economic benefits. According to the Insurance Supervisory Authority, as of 2022, revenue from digital channels in the life insurancedivision accounts for less than 5% of total premium income. In the non-life insurance division, this figure is even lower, at less than 1%.
This slow progress can be attributed to the inherently complex nature of insurance operations. Approximately 60% of processes are still manually handled on paper, leading to inefficiencies, delays, and high costs (ISG). Furthermore, the Vietnam Insurance Development Institute highlights that limitations in financial capacity, technological infrastructure, and the expertise of senior workers are major barriers. As a result, digital transformation in Vietnam’s insurance industry currently reaches the level of automating business processes, leaving a significant gap compared to a fully integrated digital insurance ecosystem.
Optimizing insurance operations with automation
Presently, many insurance companies still manage contract processes manually. With a large volume of paperwork, insurance employees often face the risk of errors in data entry and management. This not only affects the accuracy of contract information but also reduces work efficiency.
Additionally, spending excessive time searching, updating, and tracking contract information complicates workflows. This leads to delays in providing customer service. In an increasingly competitive environment, these weaknesses can impact a company’s competitiveness and reputation.
Solution: Automated insurance contract management
Robotic Process Automation (RPA), combined with intelligent document processing technologies such as IDP and OCR, stand out as an optimal solution for managing insurance contracts. Before automation, insurance employees had to manually handle each step, consuming significant time and prone to errors.
Process flow:
In the new workflow, bots handle 80% of the tasks, with human intervention to ensure that contracts meet legal requirements and company standards.
With the assistance of virtual assistants, data entry errors and contract management issues are nearly eliminated. Processing times are significantly reduced, helping companies save on operational costs. Additionally, customer and contract information is securely stored and easily retrieved when needed.
Expanding back-office automation in insurance companies
The potential for automation in the future is vast. McKinsey forecasts suggest that within the next 10 years, more than 25% of the insurance industry will be automated through the integration of AI, Machine Learning, and other technologies. Automation applications are not limited to contract management but can extend to other back-office processes such as claims processing, underwriting, and fraud detection.
According to Accenture, implementing RPA improves customer experience by 30% and reduces operational risks for businesses. Employees are freed from repetitive tasks, allowing them more time to focus on complex and specialized tasks. As a result, they can better support customer needs and enhance work performance. On the other hand, customers can experience fast insurance services with higher satisfaction.
akaBot implementation team indicates that with the support of advanced automation solutions, insurance companies can improve performance by up to 80%, save up to 60% in costs… Therefore, they can optimize revenue, enhance competitiveness, and achieve sustainable growth in the digital age.
References:
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akaBot (FPT) is the operation optimization solution for enterprises based on the RPA (Robotic Process Automation) platform combined with Artificial Intelligence, Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 21+ countries, across 08 domains such as Banking & Finances, Retail, IT Services, Manufacturing, and Logistics…, akaBot is featured in “Voice of the Customer” for Robotics Process Automation” by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, Everest Group’s RPA Products PEAK Matrix® 2023, etc.
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