Example

Chapter 1: Risk and risk management. 

- Risk, peril and hazard 
- Classification of risk: 
o Financial(dc bh)and non-financial risks, (Fire, flood, loss of key employees
through illness or death, car accidents, and liabilities arising out of
negligence are all non-financial risk. => non financial risk 0
o Pure(dc bh) and speculative risks, (Fires, floods and other natural
disasters are categorized as pure risk, as are unforeseen incidents, such as acts of
terrorism or untimely deaths.)
o Fundamental and particular risks(dc bh)( Examples of fundamental risks
are high inflation, unemployment, war, and natural disasters such as
earthquakes, hurricanes, tornadoes, and floods. Particular risks are risks that
affect only individuals and not the entire community. Examples of particular risks are
burglary, theft, auto accident, dwelling fires.). 
- The risk management process 
- Risk management tools: 
o Risk avoidance, (a manufacturing business that does not use certain
hazardous materials or chemicals due to the dangers of handling and storing
them)
o Risk prevention, (review emergency procedures, monitor safety equipment
when working in a hydro power plant, empower workers and involve safety
professionals and officers)
o Loss reduction,( building firewalls to reduce the spread of fire and installing
automatic fire sprinklers.) 
o Risk finance (Reserves, Insurance) 
Chapter 2: Risk and Insurance 
- Nature of insurance, Definition of insurance 
- Characteristics of insurance 
- 6 principles of insurance: 
o Utmost good faith, (For example, if you are applying for automobile insurance,
you are required to disclose any previous accidents you may have had to the
insurer.)
o Insurable risk,
o Insurable interest, (An example of insurable interest is a policyholder buying
property insurance for their own house but not for their neighbour’s house. The
person does not have an insurable interest in any financial loss arising from damage
to their neighbour’s house.)
o Law of large number, 
o Loss tranfer mechanism, 
 o Proximate cause. (You are playing catch, and your ball goes over a fence onto
someone else's property.)

Chapter 4: Insurance contract 

- The key terms in insurance contract: presented in the beginning of Chapter
4. - Distinguishing characteristics of insurance contracts: 
o Based on utmost good faith principle, 
o Contracts of adhesion, 
o Contracts of indemnity (Several legal principles and policy provisions
support Indemnity principle: Insurable interest, Subrogation, Contribution,
Actual cash value provision, Other insurance provisions) 
Chapter 5: General insurance (Non-life insurance) 
- Features of general insurance 
- Principles are applied in general insurance: 
o Indemnity, ( in the case of home insurance, the homeowner pays insurance
premiums to the insurance company in exchange for the assurance that the
homeowner will be indemnified if the house sustains damage from fire, natural
disasters, or other perils specified in the insurance agreement.)
o Subrogation, 
o Contribution (for example, if a term of the insurance policy requires as a
condition precedent the insured to notify the insurer of a third party claim against it
within a defined period of time and the insured fails to do so, his right to claim an
indemnity in respect of that claim may be lost.)
 - The content of property insurance products (Examples of property insurance
include homeowners, renters, and flood insurance policies )and liability insurance
products (Products that cause bodily injury to the customer.
 Products that cause property damage.
 Sickness caused by food or beverages.
)
Chapter 6: Life insurance 
- Principles of life insurance: Insurable interest, Payment, Benefits of policies are
independent. 
- Features of life insurance 
- Features of major types of life insurance: 
o Term life insurance (term insurance) 
o Permanent life insurance 
▪ Whole life insurance (For insurers, the accumulation of cash value
reduces their net amount of risk. For example, ABC Insurance issues a
$25,000 life insurance policy to S. Smith, the policy owner and insured.
Over time, the cash value accumulates to $10,000.)
 ▪ Universal life (if you take out a 10-year term life insurance policy, it
will pay benefits if you die any time during that 10-year period so long as you
have kept current with your premiums.)
▪ Variable life (You purchase a variable life insurance policy with an initial
premium payment of $100,000. You allocate 50% of that payment ($50,000)
to a bond fund, and 50% ($50,000) to a stock fund. Over the following year,
the stock fund has a 10% return, and the bond fund has a 5% return.)
)
▪ Variable-Universal life (
o Endowment life insurance (one in which a charity receives a man's money
a year after the man passes away)
o Major policy provision 

Some question T/F

1.Speculative risk refers to a situation where there is the probability of loss or no loss.
True or False? Explain and give an example?
-True because it is a category of risk that can be taken on voluntarily and will either
result in a profit or loss.
For ex
ample , When you hit number of 99, if the lottery result is correct with the number you
have hit is 99, you will receive a profit and no loss. Otherwise if the lottery result is 78
difference from the number you have hit, will will lose all the money .

2.An all-risks policy covers losses caused by all perils except those excluded. True or
False? Explain?
-True because All-risk policies offer insurance on any peril except those later excluded
in the policy
For example, For example, if an "all risk" homeowner's policy does not expressly
exclude flood coverage, then the house will be covered in the event of flood damage.

3.Risk financing refers to a technique which ensures that funds will be available to reduce
or avoid losses when they occur. True or False? Explain and give an example?
True because because making sure funds are available it can be a process of determining
how an organization will pay for losses in the most efficient and least expensive way known
as risk financing
For example , a Plan to borrow money from a bank to finance potential loss and
repayment of dues from future earnings is an example of past risk financing.
4.Subrogation will be applying if insured losses are caused by the third party. True or
False? Explain and give an example?
Truew because Subrogation shall apply in the event that it is determined that the third
party is at fault for damage to the subject-matter insured occurring during the insured
event. After the insurance enterprise compensates, it will substitute the right of the
insured to claim that organization or individual.
For example, The insured (A) is driving a car and is hit by another person (B). At that
time, the insurance company will be responsible for indemnifying the insured person A,
then the insurance company will return to sue B for compensation.
5.Limitations of liability is the maximum amount payable by an insurance policy. True or
False? Explain?
True because Limitations of liability is the amount stated the schedule which is the
maximum amount payable under this policy for every loss and for all losser
occurring the policy period .
For example ,a app shoee user suffer loss because they relied on the information
provided on that app shopee . a limitation of liability clduse in the app term and
condition could limit the liability of the app owner (it mean the user can only recoup
up to a certain amount )
1.Life insurance differs from general insurance. True or false? Explain and give an
example?
TRUE. Life insurance and general insurance are 2 types of insurance . Expect for the
person life , general insurance cover any other danger. Life insurance solely covers
the insured person’s risk.

Example: Mr.A(life insurance) pay N life insurance (insurer) an annual amount

(premium) over 5 years (Premium payment term) to make sure that his wife gets a
certain assured sum of money (life cover) in case of an unfortunate event during
the 10 years or amount at maturity on survival at the end of policy term.

2.Hazards are immediate causes of loss; including: natural hazards, human hazards and
economic hazards. True or False? Explain? Take an example for hazards?
FALSE. A hazard is a process , phenomenon or human activity that may cause loss of
life , injury or other health impacts, property dammage , social and social and
economic disruption or environmental degraclator . Hazards may be natural ,
onthropogenic or socionatural in orgin.
Example: Electricity , chemicals, working up a ladder, noise,…
3.The exclusions are perils, risks, losses, and properties that are not covered in an all-risk
policy. True or False? Explain and give an example?
FALSE. An all-risk insurance contract or open perils policy covers and protects you from all
risks or perils that could damage your home or contents and personal property.

Example: If overland water damage (flood) is not covered in your policy but you would like it
to be , you will have to pay pore for it to be added as a rider

4.Insurance can cover both pure risks and fundamental risks. True or False? Explain?
FALSE. Insurance only covers pure risks . There are no opportunities for gain or profit
when pure risks occur, so moral hazard is loss. Fundamental risks is not insurable
primarily due to potential for moral hazard.

5.Straight deductible is similar to a franchise deductible, except that once the amount of
loss equals the deductible, the entire loss is paid in full. True or False? Explain?
FALSE. Franchise Deductible a minimum amount of loss that must be incurred
before insurance coverage applies. A franchise deductible dippers from an
ordinary deductible in that,once it’s met, the entire amount of the loss is paid
subject to the policy limit.

For example, the Smiths have a homeowners policy with a $500 straight
deductible clause. Fire damage to the home amounts to $1500. Under the
terms of the policy, the Smiths would pay the first $500 and the insurance
company would reimburse them for $1000.
PART III. WRITE A SHORT ESSAY ON A GIVEN TOPIC(3 POINTS)

Topic 1: Assess the development of Vietnamese life insurance market in the context of
COVID-19 pandemic and make recommendations to to improve its limitations.
- Despite the detrimental effects of the Covid-19 pandemic, Vietnam's domestic life insurance
business continues to expand (life insurance is expected to reach VND 127,560 billion in 2020).
(up 19.6% compared to the previous year). However, life insurance has restrictions because it is
unavoidable during a covid pandemic, so we must offer recommendations to address the
remaining issues. limit and continue to improve Vietnam's quality of life

-In terms of progress, According to the Ministry of Finance's release, overall insurance premium
revenue in 2020 is expected to be VND 184,662 billion (up 15 percent compared to 2019). The
life insurance industry is expected to be worth 127,560 billion VND (up 19.6 percent ).
Customers trust insurers as a financial shield since they have well-managed insurance benefits
for them. risk-free environment Insurance benefit payments are expected to increase by 11.4
percent in 2020 compared to the same time in 2019, and life insurance firms are expected to
grow by 11.4 percent (up 10 percent ). Furthermore, insurance companies have aggressively re-
invested in the economy, so contributing to the growth of the economy and society.. Investment
back into the economy by life insurance businesses was estimated at (23.5%). Total assets of life
insurance enterprises were estimated at 456,454 billion VND (up 23.3%).

The Covid-19 epidemic is still wreaking havoc in several nations as we approach the year 2021.
Vietnam, on the other hand, expects the recovery of the economy to lead to the revival of the life
insurance industry as a result of the immunization vaccine. The number of effective policies
(primary contracts) in the life insurance market grew by 14.1 percent from the same time in
2020. Over the same time period, total life insurance premium revenue climbed by 21.8 percent.
It can be shown that, despite the fact that the covid 19 epidemic had many negative implications
for the sector in general and life insurance in particular, life insurance development in Vietnam
has always been ahead of schedule.

Aside from the advancements, Vietnam life insurance still has significant limits, and the
country's emerging life insurance market is not in good shape. Total fees are still increasing,
albeit at a slower pace than in 2019. Furthermore, banks have done a considerably better job than
conventional brokers at correctly marketing insurance, resulting in increased long-term viability.
As a result, life insurance competition is becoming increasingly fierce. Furthermore, Covid-19 is
exposing the issues with low agency quality and assisting good businesses in differentiating
themselves. Inflation, in particular, may have an impact on insurance earnings. Claims, costs,
investment income, and the balance sheet are all influenced by four channels, with the claim
channel having the biggest impact.

The Covid -19 epidemic has posed obstacles to the insurance market's operation. As a result, it is
vital to give guidelines for all firms to assist the life insurance market remain stable. and keep the
pace of expansion going. To begin, let's look at the legal framework: The government should
quickly amend the Insurance Business Law to allow insurance companies to be more
autonomous in their business activities; the second is about technology: insurance companies
must actively use digital transformation and business intelligence solutions in data systems for
finance, investment, risk management, and customer service. , as well as offer insurance policies
and pay claims,on cooperation activities: Insurers must actively engage in cooperative activities
with industry businesses in order to benefit from one another. To enhance income, the network is
being expanded to include social groups and enterprises outside of the sector. It is also important
to engage and collaborate with banks in order to execute Bancassurance operations that take use
of their customer base and distribution network, particularly in the life insurance market with
many groups of solutions. The following is an example: Banks must design a Bancassurance
distribution strategy based on market research and analysis, categorizing clients to provide
insurance services according to their requirements, strengths, and habits. Customers will have a
better understanding of them, making it easier for them to obtain banking and insurance
products.

To assess client demands and discover potential consumers for Bancassurance, make the most
of the current customer database, merge outside gathered information, and employ new
approaches. Designing insurance goods is linked to the trend of individualized financial
products, and it is vital to take the required measures to shift Bancassurance operations towards
digitalization. Completing more data protection, particularly customer data, and information
security laws.

In summary, life insurance in Vietnam has increased during the Covid-19 epidemic. However,
because Vietnam's life insurance is still relatively young in comparison to many other nations,
the limitations that come with it are significant. As a result, the government and companies must
act fast to plan for the long-term viability of life insurance.

Topic 2: Analyze opportunitiesand challenges of Vietnam’sSocial Insurance and

give recommendationsto improve thispolicy.

Trải qua nhiều năm xây dựng và phát triển, với sự vào cuộc của cả hệ thống chính trị;
sự cố gắng nỗ lực của tập thể công chức, viên chức toàn ngành qua nhiều thế hệ, Bảo
hiểm xã hội Việt Nam đã đạt được những thành tựu đáng kể,có những cơ hội để phát
triển hơn, từng bước khẳng định chính sách BHXH,tuy nhiên vẫn còn một số thách
thức đi kèm. Vì vậy để bảo đảm ổn định chính trị - xã hội và phát triển kinh tế - xã hội
của đất nước. Chính phủ cần đưa ra những khuyến nghị để giải quyết vấn đề.
Về cơ hội của bảo hiểm xã hội Vn,
Topic 3: Assess the development ofVietnamese non-lifeinsurancemarketin the context
of COVID-19 pandemicand make recommendations to to improve its limitations.
Despite the negative effects of the Covid-19 pandemic, Vietnam's domestic non-life
insurance industry rose steadily (non-life insurance premium revenue increased by 2.26 percent
over the same period last year). Non-life insurance, on the other hand, still has restrictions
because a covid pandemic is unavoidable, therefore we need to offer recommendations to
address the limited difficulties. and continue to promote non-life insurance development in
Vietnam.

In terms of growth, the non-life market's total premium revenue climbed by 2.26 percent in the
year compared to the same time in 2020. Bao Viet, with a revenue of roughly 8,149 billion VND,
is the market leader in terms of primary revenue (down 9 percent compared to the same period in
2020). PVI comes in second with VND 7,533 billion in revenue (up 10.75 percent ).

Health insurance was the most lucrative profession, accounting for 31.82 percent of total
income, followed by motor vehicle insurance (26.64 percent), property and damage insurance
(13.87 percent), and fire and explosion insurance (12.98 percent).

In terms of compensation, the non-life market's real principle insurance claim in 2021 is
estimated to be around VND 16,862 billion, with a rate of original insurance claim of 29.74
percent, which is lower than the actual percentage of original insurance claims in the same time
in 2020. (39.06 percent ).

In general, despite the fact that the covid-19 epidemic has had a significant impact, Vietnam's
non-life insurance sector is still growing rapidly from 2020 to 2021. (a stressful time for
Vietnam). pandemic covid 19).

Aside from the advancements, the non-life insurance business in Vietnam still has significant
constraints. The non-life insurance sector in Vietnam is not growing well. Total fees are still
increasing, albeit at a slower pace than in 2019. Furthermore, banks have done a considerably
better job than conventional brokers at correctly marketing insurance, resulting in increased
long-term viability. As a result, non-life insurance is becoming increasingly competitive.
Furthermore, Covid-19 is exposing the issues with low agency quality and assisting good
businesses in differentiating themselves. Inflation, in particular, may have an impact on
insurance earnings. Claims, costs, investment income, and the balance sheet are all influenced by
four channels, with the claim channel having the biggest impact.

The Covid -19 pandemic has caused challenges to the operation of the insurance market.
Therefore, it is necessary to provide recommendations to solve this limitation for all businesses
to help the non-life insurance market stand up. first, regarding the legal framework: The
Government should soon promulgate amendments to the Law on Insurance Business to allow
insurance companies to be more autonomous in their business activities; The second is about
technology: Insurance businesses need to actively apply digital transformation and apply
business intelligence solutions in data systems on finance, investment, risk management, and
customer care. , issue insurance policies, and settle insurance benefits on cooperation activities:
Insurers need to actively implement cooperation activities with businesses in the industry to take
advantage of each other and at the same time open Expanding networks with social organizations
and businesses outside the industry to increase revenue. In particular, it is necessary to approach
and cooperate with banks to deploy Bancassurance activities to take advantage of their customer
base and distribution network.

In short, during the Covid-19 pandemic, non-life insurance in Vietnam continues to grow.
However, the limitation that comes with it is very large because Vietnam's life insurance is still
basically young compared to many countries. Therefore, the government and businesses need to
quickly plan to bring non-life insurance to more sustainable development.

Topic 4: Analyze opportunitiesand challenges of Vietnameseinsurers inVietnameselife

insurance marketand giverecommendations to enhance the competitiveness of these
enterprises.
After the covid pandemic in 2021, the market has created many challenges as well as
opportunities for life insurance. Life insurers are well prepared to make 2022 a different,
promising year. Customers are becoming more aware of the benefits of life insurance, and their
income and financial planning needs are also higher. Therefore, the life insurance industry will
have new opportunities and challenges in the coming time.

In terms of opportunities, life insurance businesses have the opportunity for integration to create
an environment and an opportunity to help businesses improve their competitiveness, and "raise
the bar" beyond themselves.

Integration also creates a fiercely competitive environment for Vietnamese life insurance
businesses. To survive and develop, integration is both a challenge but also creates an
environment that promotes life insurance businesses to survive and develop to "raise the bar"
beyond themselves to improve their competitiveness and investment. invest in technology, learn
management skills, manage risks, and perfect the product system and distribution channel
system. The second opportunity is stable economic growth, people's living standards are
improved, and awareness and habits of life insurance are improved.

Vietnam is a potential market for life insurance with GDP growth at 6%/year, the protection
level of people who buy life insurance at 6% - 7% of the population is still very low compared to
that of Vietnam. countries in the region and around the world. In addition, Vietnam is
increasingly participating in free trade agreements along with attaching importance to the private
economy, reforming administrative procedures, and promoting equitization to create favorable
conditions for the individual economy. Small business owners, farm owners, foreigners coming
to work in Vietnam, and businesses with foreign elements were established and developed to
help develop the economy, improve people's living standards,... opportunities for life insurance
to meet the increasing needs of people as well as foreigners coming to work in Vietnam.

On the other hand, Vietnam has a fast-aging population, families often have two children, and
when parents reach old age, they will create a bigger burden for their children. Awareness of this
issue also increases the demand for life insurance, health care insurance

In addition, the increasing number of people participating in insurance and enjoying benefits
also helps the habit of buying life insurance gradually form, creating opportunities for life
insurance to develop. Enterprises together with the Association of Insurance carry out extensive
propaganda, actively participate in social activities, contribute to creating trust, building image
and reputation as well as contribute to raising people's awareness about the benefits of life
insurance

However, life insurance will also face many challenges in the coming time, increasingly fierce
competition puts weak competitive businesses at risk of bankruptcy or merger. Deep integration
leads to competition. increasingly fierce, especially for small businesses with weak
competitiveness, will face strong competition from large international corporations, which may
lead to dissolution or merger. Therefore, integration also creates an environment to help
businesses rise up but also screen out weak ones.

The second challenge is about the management capacity, insurance capacity, and risk
management capacity of life insurance enterprises which have been improved but are still
limited. to the existence and development of each enterprise, but not focused by the enterprise,
the internal inspection, and control work has not been carried out regularly, and the process and
strategy of management and control are still lacking. or incomplete.

Some Vietnamese insurers have not yet focused on improving their financial capacity as well as
being objectively assessed and recognized by organizations specializing in the financial capacity
assessment and a business rating such as Standard & Poors, A.M. Best; Moody's aims to affirm
credibility, provide transparency, build trust and build the image.

On the other hand, insurance companies still face challenges when they lack a team of highly
qualified human resources such as actuaries, risk assessors, etc. This is a big challenge faced by
the market. especially small life insurance businesses.

The next challenge is that the life insurance product system meets the basic needs of the
people but is not rich and diverse; the distribution channel system needs to be perfected; The
phenomenon of profiteering and fraud is much more. Besides, life insurance today has an
increasingly close connection with fields such as banking and securities, but the legal system still
lacks legal regulations associated with new fields such as Bancassurance, micro-insurance,
investment-linked insurance

The next challenge is Competition from other financial institutions. Life insurance businesses
also face the challenge of competing with other financial institutions such as real estate, banks,
and securities to attract people's idle money when choosing investors.

Facing so many outstanding challenges, each business needs to show its strength and
advantages compared to its competitors in best satisfying customers' requirements to gain higher
and higher profits. than. Enterprises can improve their competitiveness through the following
areas: Always innovate products ahead of competitors, gain and maintain market share by
expanding or specializing product functions. In addition, businesses promote digitalization to
improve competitiveness, change the way they interact and serve customers, and help maintain
revenue and market share. Connecting technology to improve service quality. Offering
reasonable and timely prices for life insurance services, proving that the effectiveness brought
from the costs that customers have to pay is consistent with the customers' wishes, the applied
price list will bring to the business. a new competitive advantage over competitors
 In short, Vietnam's life insurance presently presents opportunities as well as challenges.
Enterprises need to come up with solutions to improve the competitiveness of each business,
contribute to the economy operating more efficiently, and create better products, cheaper prices,
and better services. , make life richer

Topic5: Analyze opportunitiesand challenges of bancassurance and give

recommendations to improve bancassurance in Vietnamese insurance market
To sustain their survival and development in the face of the trend of opening up and
international economic integration, and in the face of more harsh competition, domestic insurance
businesses and commercial banks must constantly update their high quality of operation. Changes in
company strategy, marketing strategy, and product distribution plan must all happen at the same time.
The introduction and growth of linkage models between insurance businesses and commercial banks
has been one of the most notable shifts in the insurance-banking sector in Vietnam in recent years. in
the development and distribution of insurance products via the bank (Bancassurance).This linkage brings
development opportunities for both banks and insurance, but will also face some challenges that other
insurance companies will face. Businesses need to take measures to improve it.

In reality, there have been several linking models between banks and insurance on the
Vietnamese market since 2000, as follows: Vietinbank and Bao Viet (2001); Techcombank and Bao Viet
(2006); ABBank and Prévoir Vietnam Life Insurance Company Limited acted as insurance agents (2008).
And tying banking and insurance together opens up a slew of possibilities for companies like yours. For
financial institutions: Increased income from insurance commissions, rental sale points; diversification of
business activities; reduced credit risk; increased the bank's mobilized capital from insurance partners;
increased bank staff productivity through the provision of additional insurance products; and fixed costs
can be relatively reduced if Bancassurance is implemented successfully.. In addition, the distribution of
insurance products will help strengthen loyalty and increase the attachment of banks and customers
because insurance products have longer terms than savings or loans in Vietnam bank

For insurance companies, this means that they can reach a large bank customer base and sell
insurance to them through the bank's distribution network without having to build a branch system or
hire insurance staff; they can access and use the bank's customer database; they can "borrow" the
bank's reputation, brand, and trust from customers (due to the undeniable fact that the majority of the
public has a clearer image and impression of the bank and its financial ability than that of the bank's
competitors).
 In addition to the benefits, bancassurance has significant constraints and concerns. Dependence
on stronger institutions, partner conflicts of interest, the introduction of new dangers, price rises, and
the creation of new financial services are all possible outcomes.

Problems assessing insurance firms' solvency, increased volume of business resulting in

overworked agents, and a lack of regulatory oversight.

Because the legal structure for the insurance sector now lacks specific requirements for
Bancassurance distribution channels, Bancassurance operations remain distinct and persist in the form
of insurance company organizational agents. risky, resulting in issues for both parties in the corporate
collaboration process Banks and insurance firms find it difficult to comply with the legislation regulating
Bancassurance operations because they are confusing.

The next issue is that consumer data exchange between banks and insurance firms has been
hampered in many situations by concerns about data ownership and privacy protection. Customer
permission processes for data sharing are lacking, as is data privacy.

Furthermore, there is the risk of a conflict of interest between other banking products and
insurance policies, according to bancassurance. Clients may become confused about where they should
invest as a result of this.

Especially Problems in the market image of the bank or insurance business might occur as a
consequence of changes in the bank's image, leading in recalling that damages the insurance firm and
vice versa.

We must provide recommendations based on these problems in order to improve the quality of
bancassurance in the Vietnamese insurance industry.The first is to suggest further data protection
requirements, particularly for client data, as well as information security regulations, as well as
restrictions on bank workers' rights and duties while selling insurance products.

Following that, banks must devise a strategy for distributing Bancassurance products based on
market research and evaluation, as well as classification of clients in order to provide insurance services
according to their needs. establishing the most suitable and pleasant circumstances for clients to have
access to both banking and insurance products, based on their strengths and habits

Finally, the bank and the insurance firm should collaborate more closely by utilizing the current
client database, incorporating outside gathered data, and analyzing consumer demands using new
approaches. Designing insurance products is linked to the trend of individualized financial goods, and it
is vital to take appropriate steps to digitize and advance towards digitalization of Bancassurance
operations.

In short, there is no single Bancassurance model that works for all markets and no one is the
most efficient. it has both opportunities and challenges and if it is a challenge, we will come up with
ideas to overcome it and turn this model into a comprehensive opportunity in Vietnam insurance.

Topic 6: Assess the impactsof the COVID-19 pandemic on the Vietnamese insurance
market and make recommendations to recover it.

The COVID-19 pandemic has been making health issues a top concern of the people and the
whole society. For that reason, insurers have had quick and timely responses when increasing
their benefits in life insurance and traditional medicine with a wide range of health products and
services for the elderly. client. Even so, the covid 19 pandemic has also had a strong impact on
insurance in Vietnam.

First, Pressure on compensation provision. Customer coverage is usually fairly stable from
time to time, and any small fluctuations will generally have little effect on net cash flow.
However, Covid-19 has created a disparity between insurance claims paid and premiums
collected. The number of policyholders has also declined rapidly due to rising unemployment,
which adversely affects the premium collection and new mining. This can make it difficult for
insurers to balance their reserves as they have to cover claims payments.

In addition, the covid pandemic led to Pressure on premium shortfall provision. Premium
Deficiency Reserves (PDR) are necessary when there is a possibility of loss on premiums already
in effect that has not been earned at the time of assessment. It is recognized when the unearned
premium provision is not sufficient to cover expected future expenses. It will be difficult for
actuaries to calculate premium shortfall provisions when taking into account the costs associated
with Covid-19 given the unprecedented nature of this pandemic.

Next is, Possibility of difficulty collecting premiums. Initial projections of the impact of
Covid-19 on insurers' revenue were that individual and corporate customers could delay
premium payments to keep the cash. Especially, Difficulty in calculating the premium rate for
the upcoming period. During their calculations, actuaries must estimate medical costs and usage
of health services, the combination, and intensity of services, and the composition of risk groups
– all of these factors vary between geographic regions and between health plans. To date, the
impact of Covid-19 has varied significantly by region – both in terms of sensitivity and duration.

It can be seen that the impact of covid 19 on Vietnam insurance is very large, so every
business should come up with a solution to overcome it. The first is to strengthen the review,
assessment, and management of funds and the level of provision for premiums and claims. In the
face of complicated disease developments, insurance companies need to regularly review
funds/provision levels. , evaluate the reasonableness and adequacy of these funds/provision
levels to have timely solutions in case of shortage, and rational use of redundant provisions. For
well-capitalized insurance companies, it is possible to consider using temporary financial
resources to settle customer claims so as not to affect/deficit reserve funds. add a provision on
the extension of the premium payment period for insurance policies that do not have this
regulation, depending on each customer fully meeting the criteria of the insurance company's
payment history; adjust the premium payment extension longer for long-term customers with
good payment history but due to the implementation of social distancing in the locality, they
cannot pay the premium on time; extended conditional coverage (e.g. limited liability, level of
self-responsibility,...) about the costs of testing, hospital stay, support for loss of income during
inpatient Covid-19 treatment at the hospital as prescribed by the doctor for those who are not in
the 5 groups of subjects eligible for treatment. pay all expenses according to current regulations
of the State or the Ministry of Health. Extending conditional insurance (for example limited
liability, self-responsibility, ...) expenses for testing, hospital stay, support for loss of income
during inpatient Covid-19 treatment in hospital and outpatient as prescribed by a doctor over the
amount covered by Health Insurance or the State Budget. Followed by Reviewing health
insurance rules and considerations in developing new products and Running multiple calculation
scenarios when determining premiums for the future.

In short. As the covid 19 pandemic emerges, it can be seen how it will impact the bottom line
of insurance companies. Insurers need to carefully consider all possible scenarios shortly — both
negative and positive — and come up with the best solution for the ever-evolving Vietnam
insurance.
Topic 7: Analyze the impact of the Industrial Revolution 4.0 on theVietnaminsurance
industry and make recommendations to promote the development of thisindustry.
In the context of the industrial revolution 4.0, information technology has developed strongly,
which has brought many positive impacts to the insurance industry such as increasing sales
channels, interactive means, opportunities to obtain global data, etc., and improving business
performance. But it also poses many negative impacts such as the lag in insurance in Vietnam

As for the insurance sector, now insurance enterprises and foreign branches sell products in the
following forms: Directly, through insurance agents; insurance brokerage; through bidding, and
other forms following the law. Therefore, Industry 4.0 with modern technologies will help
insurers promote distribution channels through electronic transactions, helping insurers save on
human resource costs to carry out the sales process. Customers will also actively seek
information about insurance products to meet diverse needs.

In addition, this revolution helps domestic insurance companies and groups to upgrade their
products and services in a more modern and efficient direction.

In the context of Industry 4.0, information technology has developed strongly, the sale of
insurance products through electronic transactions is suitable with actual conditions, creating
favorable conditions for customers to participate in insurance as well as creating opportunities
for customers to participate in insurance. association for insurance companies to exploit their
products in the best way.

The law on the insurance business allows insurance enterprises to sell insurance products
through electronic transactions. However, the Law on Electronic Transactions and its guiding
documents have not yet specified details for electronic transactions related to insurance
contracts. In addition, the recognition of electronic signatures of organizations and individuals in
Vietnam is still limited, so the application of electronic transactions to online insurance sales is
still difficult. Enterprises still have to take the step of meeting customers face-to-face to get
signatures on insurance claims and issue printed insurance policies to customers.

On the part of the insurance management agency, always encourage and support insurance
businesses through electronic transactions based on compliance with the provisions of the law,
harmonizing the interests of businesses and customers, and supporting support healthy business
development. In addition, insurers need to prepare well the risk management process, especially
systematic risk, and sales risk, to be ready for practical application, initially for insurance
products. simple danger. Building websites and applications taking into account the speed of
mobile networks and network cables, providing full information about products, introducing
products that are suitable for customer segments, and ensuring security and storage requirements.
data storage.

To improve the effectiveness of 4.0 technology application in insurance, businesses should

have recommendations to promote development such as Diversifying methods and developing
insurance products in line with business trends associated with insurance. associated with the 4.0
technology revolution, thereby meeting the needs of customers while ensuring simplicity in
appraisal and payment of insurance benefits for customers using high technology, but still
ensuring safety. safety, caution for insurers, prevention, and control of corresponding risks.

In short, the Industrial Revolution 4.0 impacted the insurance industry with many benefits
such as increased sales channels, interactive media, opportunities to get comprehensive data, and
improved operational efficiency. …, there are many negative effects if businesses do not keep up
with the trend, cybersecurity, low collection, use, and sharing of personal data, discrimination in
the online insurance sales system cuts in labor…