Group 2 Risk Management Insurance Report docx FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS INTERNATIONAL 1.1. Overview of Insurance Insurance is a means of providing protection against financial loss in a great variety of situations, or in other words, defined by the Commission on Insurance Terminology of the American Risk and Insurance Association, as “the pooling of fortuitous losses by transfer of such risks to insurers, who agree to indemnify insureds for such losses, to provide other pecuniary benefits on their occurrence, or to render services connected with the risk”. Despite the world economic downturn in 2008, Vietnam’s insurance market has grown rapidly in recent years and continues to be considered a promising market. Life insurance segment registered a strong compound annual growth rate of 20% during the period 20192021. This category is expected to continue to grow, driven by the country’s economic growth, contributing to the increase in annual disposable income levels, and middleclass population expansion. Based on the theory of insurance, insurance can be defined from two points of view. On one hand, insurance is the protection against financial loss provided by an insured. On the other hand, insurance is a device by means of which the risks of two or more persons or firms are combined through actual or promised contribution to a fund out of which claimants are paid. (C.A.W. Heinz, 1987). As we can observe from the above classification, the insurance industry can be divided into two biggest categories: General insurance business (nonlifeinsurance business) and Life insurance business. As the main objective of this study is to analyze the life insurance business of Manulife Insurance Company, we will try to give emphasis on the latter. 1.2. Introduction to Life Insurance 1.2.1. Definition of Life Insurance According to Cornell Law school: Life insurance is a contract between the insurance company and an insured in which the company promises that at the death of the insured, the company will pay a certain amount of money to a person the insured designates in the contract if that person survives the insurance policy. In return for the promise to pay, the insured will pay the life insurance company a premium. Life insurance is considered a third party beneficiary contract BUSINESS MID TERM REPORT Risk Management and Insurance Topic Life insurance business anal.
https://tailieuluatkinhte.com/ FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS & INTERNATIONAL BUSINESS *** MID-TERM REPORT Risk Management and Insurance Topic: Life insurance business analysis of Manulife Financial Corporation in Vietnam Class Lecturer TMAE308(GD1 - HKI - 2223).1 MSc Hoàng Thị Đoan Trang https://tailieuluatkinhte.com/ TABLE OF CONTENTS Theoretical basis 1.1 Overview of Insurance 1.2 Introduction to Life Insurance 1.2.1 Definition of Life Insurance 1.2.2 Classification of Life Insurance 1.3 Statement of problem Business situation of life insurance of Manulife Financial Corporation in Vietnam 2.1 Introduction of Manulife Financial Co 2.2 Product lines/Insurance packages 2.3 Manulife life insurance customers 2.3.1 Classification of customers 2.3.2 Customer persona 2.3.3 Customer segments 2.4 Manulife competitors 2.4.1 Indicators related to competition 2.4.2 Competitors in Vietnam 2.5 Manulife performance analysis Recommendations for Manulife 3.1 Digital Marketing 3.1.1 Video-on-demand 3.1.2 Social media influencers 3.1.3 Social media stories 3.2 Investing in technology 10 3.2.1 Artificial Intelligence 10 3.2.2 The Internet of Things 11 3.2.3 Developing apps and websites 11 https://tailieuluatkinhte.com/ Theoretical basis 1.1 Overview of Insurance Insurance is a means of providing protection against financial loss in a great variety of situations, or in other words, defined by the Commission on Insurance Terminology of the American Risk and Insurance Association, as “the pooling of fortuitous losses by transfer of such risks to insurers, who agree to indemnify insureds for such losses, to provide other pecuniary benefits on their occurrence, or to render services connected with the risk” Despite the world economic downturn in 2008, Vietnam’s insurance market has grown rapidly in recent years and continues to be considered a promising market Life insurance segment registered a strong compound annual growth rate of 20% during the period 2019-2021 This category is expected to continue to grow, driven by the country’s economic growth, contributing to the increase in annual disposable income levels, and middle-class population expansion Based on the theory of insurance, insurance can be defined from two points of view On one hand, insurance is the protection against financial loss provided by an insured On the other hand, insurance is a device by means of which the risks of two or more persons or firms are combined through actual or promised contribution to a fund out of which claimants are paid (C.A.W Heinz, 1987) As we can observe from the above classification, the insurance industry can be divided into two biggest categories: General insurance business (non-life-insurance business) and Life insurance business As the main objective of this study is to analyze the life insurance business of Manulife Insurance Company, we will try to give emphasis on the latter 1.2 Introduction to Life Insurance 1.2.1 Definition of Life Insurance According to Cornell Law school: Life insurance is a contract between the insurance company and an insured in which the company promises that at the death of the insured, the company will pay a certain amount of money to a person the insured designates in the contract if that person survives the insurance policy In return for the promise to pay, the insured will pay the life insurance company a premium Life insurance is considered a third party beneficiary contract because it is made for the benefit of a person who is not a party to the agreement Also, life insurance is https://tailieuluatkinhte.com/ considered a type of will substitute because it is functionally equivalent to a will, but the assets are transferred to the beneficiary within the donee’s lifetime 1.2.2 Classification of Life Insurance From a generic perspective, life insurance can be classified as two main types, including term insurance and cash-value life insurance The difference between these two types is that term insurance provides temporary protection, whereas cash-value life insurance has a saving component and builds cash values overtime 1.2.2.1 - Term insurance The premium of this type of insurance is increased at each renewal date, which is based on the insured’s attained age, with the purpose to protect the insurability of the insured Most term insurance policies are also convertible, which means the term policy can be exchanged for a cash-value policy without evidence of insurability - Term insurance consists of a wide variety of term insurance products, including ● Yearly renewable term ● 5-, 10-, 15-, 20-, 25-, or 30-year term ● Term to age 65 ● Decreasing term ● Reentry term ● Return of premium term insurance - Term insurance has two major limitations First, term insurance premiums increase with age at a progressive rate and eventually reach prohibitive levels Thus, this type of insurance is not suitable for people who need large amounts of life insurance beyond age 65 or 70 Secondly, term insurance policies not accumulate cash values Thus, term insurance is considered inappropriate unless it is supplemented with an investment plan 1.2.2.2 Cash-value life insurance Cash-value life insurance is a form of permanent life insurance lasting for the lifetime of the insured that features a cash-value savings component Traditionally, cash-value life insurance has higher premiums than term life insurance because of the cash-value component, and it requires a fixed-level premium payment, of which a https://tailieuluatkinhte.com/ portion is allocated to the cost of insurance, and the remaining amount will be deposited into a cash-value account This type of life insurance can be divided into smaller categories: Whole life insurance and Endowment insurance - Whole life insurance Whole life insurance is a generic name for a cash-value policy that provides lifetime protection for the holder Whole life insurance is called ordinary life insurance if premiums are payable throughout the lifetime of the insured and limited-payment life insurance if the premium period is less than the insured’s lifetime ● Ordinary life insurance Ordinary life insurance is a level-premium policy that accumulates cash values and provides lifetime protection up to age 121 This policy is appropriate when lifetime protection is needed, which means that the need for life insurance will continue beyond age 65 or 70 Ordinary life insurance can also be used to save money, as ordinary life insurance accumulates cash values that can be acquired by surrendering the policy or by borrowing the cash value ● Limited-payment life insurance A limited-payment policy is another type of traditional whole life insurance The insurance is permanent, and for this type, the insured will be provided with lifetime protection The premiums are level, but they are paid only for a certain period The most common limited-payment policies are insurance for 10, 20, 25, or 30 years - Endowment insurance Endowment insurance is a historical form of traditional life insurance, which pays the face amount of insurance if the insured dies within a specified period; if the insured survives to the end of the endowment period, the face amount is paid to the beneficiary at that time Other types of life insurance: ● Modified life insurance ● Preferred risks ● Joint life insurance https://tailieuluatkinhte.com/ ● Second-to-Die life insurance ● Savings bank life insurance ● Home service life insurance ● Group life insurance 1.3 Statement of problem As the condition of Vietnam today, people are having more and more concern about their old-age health and forthcoming retirement period This urgent concern has raised a high demand and created a potential market for insurance companies especially life insurers Life insurance nowadays plays an important role in promoting socio-economic development When a person's life is insured, an insurance company agrees to pay benefits upon that person's death However, issues within the insurance industry prevent it from operating smoothly, they can be named: - Unhealthy competition leads to the alarmingly decreasing premium rates - Concentrated branches around urban areas - Shortage in life insurance professionalism and trained staff - Shortage in adequate advertising for promotion It is obvious that a variety of reasons are contributing to the life insurance sector's troubles getting worse Therefore, it requires study to find the issues and address potential fixes before it becomes a deep rooter For these reasons, we chose the research topic as “Life insurance business of Manulife Vietnam” https://tailieuluatkinhte.com/ Business situation of life insurance of Manulife Financial Corporation in Vietnam 2.1 Introduction of Manulife Financial Co and Manulife Vietnam Limited Manulife Financial Corporation, based in Toronto, is Canada’s largest insurance company and one of the largest in the world Its principal operations are located in Canada, the United States and Asia Manulife offers life, health and income insurance protection, as well as annuities and wealth and asset management It was founded in 1887 as Manufacturers Life Insurance Company Inc Canada’s first prime minister, Sir John A MacDonald, was also the company’s first president Manulife is a public company that trades on the Toronto, New York and Philippine stock exchanges under the symbol MFC and on the Stock Exchange of Hong Kong as 945 In 2018, Manulife registered $39 billion in revenue and $4.8 billion in profit and held $1.1 trillion in assets The company has 119,000 agents and employs more than 38,000 people, who serve nearly 33 million customers As a member of Manulife Financial, Manulife Vietnam is the first foreign life insurance company to be present in Vietnam since 1999 and owns its own headquarters building with an investment value of more than 10 million USD With rich experience and global reputation, Manulife is currently the largest Life Insurance Company in Vietnam, by charter capital (Updated to May 2018) Manulife Vietnam is currently providing a diversified product portfolio from traditional insurance products to health insurance, education, investment linkage, retirement, etc for more than 800,000 customers through its team Powerful and professional agents are employed in 61 offices in 45 provinces and cities nationwide In addition to the traditional distribution channel through agents, Manulife Vietnam has diversified its business activities by working with banking partners to deploy a distribution channel of insurance products through banks to meet the growing needs of customers and the insurance market Moreover, Manulife Vietnam is the only life insurance company that cooperates with the Central Committee of the Vietnam Women's Union to launch a micro-insurance program for low-income women https://tailieuluatkinhte.com/ 2.2 Types of insurance policies of Manulife Though Manulife provides lots of insurance policies for customers in Canada and other countries, in Vietnam, there are just a few of them in the insurance market The two most popular types are: - Life insurance: The insurance policy guarantees the insurer pays a sum of money to named beneficiaries when the insured dies or until a specific time that the insured is still alive in exchange for the premiums paid by the policyholder - Health insurance: The insurance policy will help you pay for the medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly 2.3 Market and competitors in Vietnam - About first-year premium revenue The issue of first-year premium revenue has been paid much attention by many insurance companies, in which another very noticeable change is the application of technology and new development strategies when Fintech startups and Insurtech appeared This not only makes it easier to sell insurance products, but also quickly resolves claims for customers Notable for this change can be mentioned the introduction of an electronic claim process without providing too much customer data Accordingly, in this way, customers only need to send their identity cards, take pictures and transfer insurance money to customers is currently being done by insurance companies through banks with a time of about 1-2 days Life insurance company Market share of new insurance premium revenue Manulife 24.1% Baoviet Life Corporation 12.8% Prudential 12.7% Dai-ichi Life 12.2% https://tailieuluatkinhte.com/ AIA 8.1% MB Ageas 7.3% Sun Life 4.6% FWD 4.3% Generali 3.3% Chubb Life 2.5% Cathay 2.2% Hanwha Life 2% Aviva 1.5% The remaining enterprises 2.4% - About total premium revenue Life insurance company Market share of total premium revenue Manulife 19.8% Baoviet Life Corporation 19.1% Prudential 16.8% Dai-ichi Life 11.7% AIA 10.6% MB Ageas 3.7% Chubb Life 2.7% Generali 2.7% FWD 2.5% Hanwha Life 2.5% Aviva 2.1% Sun Life 2.1% Cathay Life 1.5% https://tailieuluatkinhte.com/ BIDV MetLife 1% The remaining enterprises 1% In Vietnam, the potential of the insurance market is still very large Given the size of the life insurance market, the number of valid policies (main policies) is estimated at 13,179,589 contracts, an increase of 14.1% over the same period in 2020 but only equivalent to about 13% population It is worth mentioning that in 2021, although the signing of strategic cooperation contracts and exclusive distribution between insurance companies and banks is no longer as active as in 2020 Currently, the bancassurance channel contributes nearly 30% to total revenue life insurance Most recently, VietinBank and Manulife Vietnam have also "activated" an exclusive cooperation agreement lasting 16 years Accordingly, from December 29, 2021, Manulife Vietnam is officially the exclusive distributor of life insurance solutions for VietinBank customers Specifically, a diversified portfolio of retirement and property insurance solutions will gradually be distributed through VietinBank's banking network These products are made by a well-trained professional sales team and supported by the most advanced digitization tools and processes to reach customers It is predicted that in 2022, insurance companies will increase the use of technology to analyze customer preferences and needs Thereby, it is possible to recommend products that are suitable for each individual In fact, in the past year, the impact of the epidemic has increased people's awareness of the pandemic, they look for better solutions to prevent risks As a result, the penetration level of life insurance companies is assessed to be the highest in the past 10 years 2.4 Manulife’s performance analysis 2.4.1 Revenue https://tailieuluatkinhte.com/ 2020 Indicator Value 2019 Rate (%) Value Gap Rate (%) Net revenue from insurance business 19,701,047,364, 372 78.42 14,770,877,91 6,042 Revenue from financial activities 4,671,514,577,1 86 18.59 2,374,357,888, 655 13.55 Other revenues 751,105,072,59 2.99 381,067,600,8 03 2.17 Total 25,123,667,014, 155 Indicator Value 84.28 4,930,169,448,33 17,526,303,40 5,500 2021 Value 2,297,156,688,53 370,037,471,794 Rate (%) Value (%) Rate (%) -5.86 33.38 -6.96 5.05 96.75 37.25 0.82 97.11 37.50 7,597,363,608,65 2020 Rate (%) Value Growth Gap Rate (%) Value Growth Rate (%) Value (%) Rate (%) Net revenue from insurance business 24,144,579,984, 175 78.55 19,701,047,36 4,372 78.39 4,443,532,619,8 03 0.16 22.55 0.21 Revenue from financial activities 5,068,632,706,5 27 16.49 4,671,514,577, 186 18.59 397,118,129,341 -2.10 8.50 -11.28 Other revenues 1,525,609,481,9 40 4.96 761,015,663,4 07 3.03 764,593,818,533 1.94 100.47 63.91 25,133,577,60 4,965 5,605,244,567,6 77 Total 30,738,822,172, 642 Total revenue in 2020 is 25,123,667,014,155 VND, an increase of 7,597,363,608,655 VND compared to 2019 In 2021, it will continue to increase but only increase by 5,605,244,567,677 VND compared to 2020 The proportion of net revenue from insurance business has always remained high in the yearly income structure (>70%), however it tends to decrease This can be a good thing because the company can earn money from many different sources, reducing the risk if it has to rely heavily on revenue from the insurance business (the company's main activity) The growth rate of net revenue from insurance business has a decreasing growth rate (from 33.38% in 2019 to 2020 to 22.5% in 2020 to 2021), which is low This proves that the company is having problems in making money from insurance and needs to take actions to promote the signing of insurance contracts further 10 https://tailieuluatkinhte.com/ 2.4.2 Expenses 2020 Indicator Insurance business expense Financial activities expense Value 19,677,288,457,25 486,918,986,153 Selling expense 4,829,445,048,784 Operating expense 2,094,328,796,329 Other expenses 88,797,146,411 Total 27,176,778,434,93 2019 Rate (%) Insurance business expense Financial activities expense Value 27,793,628,223,069 Rate (%) Value 72.40 10,481,261,872,87 1.79 17.77 7.71 330,397,965,245 1,781,868,181,374 10.9 312,460,614,955 0.00 88,797,146,411 75.80 % Value 19,677,288,457,257 Operating expense 2,485,314,017,047 Other expenses 34,603,685,849 Total 36,665,876,604,201 Rate (%)e Value (%) Rate (%) 7.97 87.74 12.3 -0.24 47.37 -11.7 -4.81 31.50 -21.2 -3.25 17.54 -29.6 - - - 10910706093512 2020 Rate (%) 156,521,020,908 1,156,900,726,857 16,266,072,341,42 806,692,512,660 5,545,638,165,576 2.03 Growth 9,196,026,584,381 3,672,544,321,927 2.20% Selling expense 64.4 Value 22.5 0.33 2021 Indicator Gap Gap Rate (%) Value 6.78% 0.09% 4,829,445,048,784 2,094,328,796,329 88,797,146,411 27,176,778,434,934 11 Rate (%)e 72.40 % 8,116,339,765,812 3.40% 1.79% 319,773,526,507 0.41% 486,918,986,153 15.12 % Growth Value (%) Rate (%) 41.25 % 4.69% 65.67 22.80% % 17.77 % 716,193,116,792 -2.65 14.83 % % -14.89 % 7.71% 390,985,220,718 -0.93 18.67 % % -12.04 % 0.33% -54,193,460,562 -0.23 -61.03 % % -71.12 % 9489098169267 https://tailieuluatkinhte.com/ Along with the growth of revenue, the company's total expenses in 2020 and 2021 also increased However, the growth rate of expenses is just larger and smaller than the growth rate of income In other words, the company is operating at a loss The company's loss after corporate income tax has also tripled, which proves that the company's business activities in 2020 and 2021 have not been highly effective The value of insurance business expenses was the same with net revenue from insurance business in 2020 and later became larger in 2021, about 3.65 trillion VND specifically This shows that the company is not gaining profit through insurance activities Meanwhile, the profit of financial activities increased significantly from about trillion VND in 2019 into more than trillion VND both in 2021 and 2020 This shows the effectiveness of investing using the premium of customers by the company 2.4.3 Short-term assets Indicator Cash and cash equivalent s Short-ter m investmen ts Short-ter m account receivable Other short-term assets Indicator Cash and cash 2020 Value 2019 Rate Value 29.58 % 5,316,514,515,613 Gap Rate 37.18 % Value -271,975,701,433 10,566,583,078,051 50.68 % -7.60 % Value -4.87 % Rate -20.45 % 2,949,277,208,697 8.11% 38.72 16.00% % 7,617,305,869,354 12.13 % 208,600,004,079 -0.83 % 11.44 -6.82% % 61,531,826,662 1.10% -3,277,591,479 -0.64 % -5.33 % 11.31% 2,032,415,026,561 1,823,815,022,482 0.46% 58,254,235,183 2021 12,068,613,229,078 Rate 5,588,490,217,046 58.79 % Value Growth 2020 Rate 41.26 % Value 5,316,514,515,613 12 Gap Rate 29.58 % Value 6,752,098,713,465 -58% Growth Rate Value Rate 11.68 127.00 39.47% % % https://tailieuluatkinhte.com/ equivalent s Short-ter m investmen ts 49.31 % 14,424,175,695,943 Short-ter m account receivable 2,691,252,160,296 Other short-term assets 69,312,256,710 58.79 % 10,566,583,078,051 9.20% -9.48 % 36.51 % -16.13 % -2.11 % 32.42 % -18.64 % -0.09 % 18.98 % -27% 3,857,592,617,892 11.31% 2,032,415,026,561 658,837,133,735 0.24% 58,254,235,183 0.32% 11,058,021,527 Through the table of short-term assets, we can see that cash and cash equivalents always account for a relatively large proportion of the company's total short-term capital, the highest is in 2021 (41.26%) The value of short-term receivables increased but the proportion tended to decrease However, the company needs to take measures to strengthen supervision of customers' premium payment to avoid them becoming backlogged and difficult to recover debts 2.4.4 Long-term assets 2020 Indicator Long-term account receivable Value 2019 Rate Rate Value Growth Rate Value Rate 0.20% -2,632,946,185 -0.08 % -4.44% -36.83 % 0.63% 17,354,860,201 -0.17 % 9.47% -27.64 % Long-term investments 39,223,994,847,11 89.28 25,918,129,752,17 89.24 13,305,865,094,93 % % 0.04 % Other long-term assets 2,390,658,961,600 5.44 7.09% % 2,058,576,873,266 -1.65 % Private assets 2,063,908,448,508 4.70 % Fixed assets 56,698,573,280 200,694,650,733 0.13 % Value Gap 0.46 % 59,331,519,465 183,339,790,532 825,061,319,490 2021 Indicator Value 2.84% 1,238,847,129,018 2020 Rate (%) Value 13 332,082,088,334 16.13% -23% 1.86 150.15% % 65% Gap Rate (%) Value 51.34% 0.04% Growth Rate (%) Value (%) Rate (%) https://tailieuluatkinhte.com/ Long-term account receivable 61,664,841,719 Fixed assets 167,547,986,183 0.10 0.13 56,698,573,280 0.26 200,694,650,733 -0.03 8.76 -25.00 -33,146,664,550 -0.19 -16.52 -42.43 4,966,268,439 0.46 Long-term investments 53,746,035,907,94 39,223,994,847,11 14,522,041,060,83 84.36 89.28 -4.92 Other long-term assets 3,427,213,233,747 Private assets 6,311,416,905,872 5.38 2,390,658,961,600 9.91 2,063,908,448,508 5.44 1,036,554,272,147 -0.06 4.70 4,247,508,457,364 5.21 37.02 -5.51 43.36 -1 205.80 111 Looking at the table of long-term assets, It is clear to see that only the fixed assets value decreased from 2020 to 2021 To be more specific, the fixed assets value in 2020 was approximately 200 billions VND, while in 2021 the number plummeted to more than 167 billion VND, making the percentage growth rate was -42,43% However, the pattern does not apply for the other indicators, as long - term account receivable, Long-term investments and other long-term assets continued to rise throughout the year with the the gape value of 4.996 billions, 14,552 thousands billions and 1,036 thousands billions, respectively Another feature to be noticed is the rocketing increase of the private assets with the percentage growth rate of 111%, making this indicator the most fast - growing one during the period of 2020-2021 As a result, it is recommended that the company take considerable actions to maintain and raise the proportion of fixed assets so as to prevent the given indicator from falling down in the future 14 https://tailieuluatkinhte.com/ Recommendations for Manulife Financial Corporation in Vietnam From the analysis above, we have some recommendations for the further development of Manulife Vietnam in the future as following: 3.1 Digital Marketing The customer engagement strategy that stood out for Manulife is the revamped Client Service Centre experience That is an experience map designed with all the ideal situations and crafted scenarios of what the organization “thought” customers would like Those assumptions were then tested with real customers through a multi-modal approach including validating the experience through an in-person simulation The participants were impressed with the simulation and offered additional feedback on further improvements The company implemented many suggestions and initial anecdotal feedback suggests customers are delighted Manulife collects NPS (Net promoter score) as a baseline metric and has Manulife Circle (the insight community) for fast, agile access to a group of opted-in customers who want to give them feedback because they know it will improve their experience with the organization The company did well with customer engagement procedures but hasn’t taken advantage of digital marketing to optimize the lead generation process Over the years the number of active users on social media channels has increased and with this Manulife can make use of its social media handles to promote its products, interact with customers and even provide after-sale services Traditional methods of digital distribution may help but will not gain a lot of traction in today's consumer society The enterprise should look at different elements of digital marketing to connect with digital/mobile/social consumers 3.1.1 Video-on-demand Due to the easy accessibility, built-in value, and viral nature, video content stands out as the smartest and most intelligent way to approach content marketing today, and in the future Video marketing is no doubt the perfect way to create content that remains personal and has a real-time, long-lasting impact on the target audience It possesses an immeasurable ability to create emotion-driven sales – and not to forget sales are often personal to a great extent Buyers always wish to feel great about their 15 https://tailieuluatkinhte.com/ choice, and video content, when done in the right manner, is an incredible way to create this special feeling 3.1.2 Social media influencers The real power of influencers lies in the trust and credibility of their followers – and influencers already have an established relationship with their audience Their followers respect their recommendations and view them as relevant, reliable, and relatable When an influencer shares their honest feedback about a product or service, it is almost always perceived as an authentic testimonial This can help strengthen your brand’s reputation and reinforce your brand credibility Thus, collaborating with influencers helps build authentic relationships, create high-quality content, and have a focused strategy 3.1.3 Social media stories The key method of this strategy is empathizing, which means understanding what's important to people and understanding their struggles Empathy has always been at the heart of User Experience Anyone who is sufficiently skilled at empathy has a unique understanding of human emotions and can be used to manipulate people, which is a very powerful selling tool For example, LUSH’s How It’s Made Video Series With the tagline “Fresh, handmade cosmetics,” LUSH is a beauty brand that is all about natural products Their community wants beauty products that are truly natural, and—most importantly—they want assurance that they’re getting what they pay for LUSH provides that assurance through the radical transparency of this video series Each episode features actual lush employees in the “kitchen,” narrating the step-by-step process of how the products are made You see mounds of fresh lemons, tea infusions, and salt swirled together to become the product you know and love It’s equal parts interesting and educational 3.2 Investing in technology Despite being one of the biggest insurance companies in Canada and in Vietnam, Manulife’s level of technology is still quite limited Naren Baliga, Manulife Vietnam Chief Operating Officer, said that digitalization was no longer just a driving factor for the growth of the life insurance industry and insurers that fail to adopt 16 https://tailieuluatkinhte.com/ digitalization would be left behind To some extent, they’ve made some digital initiatives For example, Manulife Vietnam launched the ManuConnect customer portal – the single online touchpoint to review and self-manage policies for customers, which can help them to quickly and easily access their full ePolicy They provided paperless e-Claims (For presenting only: The paperless solution for services) solutions, which allow customers to submit a claim online in as little as a minute They developed the ManulifeMOVE app, a customer rewards program designed to reward the policyholder for every move he/she makes, whether by walking, cleaning, or jumping, with attractive cash rewards The app motivates customers to stay active and live healthier and provides other services such as direct access to their policy benefits, claims, and medical cards, end-to-end healthcare services such as an online doctor, telemedicine, and a pharmacy But in reality, those initiatives are not good enough, not because they are bad ideas but because the quality is not as good as advertised The company still has many things to improve as its customers usually complain about the bugs and slowness of apps and services (FPO: They make them feel really annoyed and lose their trust in the company) 3.2.1 Artificial Intelligence In the rapidly changing world we have today, if Manulife wants to keep its position in the field, it must strongly invest in technology The first one that we would highly recommend is developing Artificial Intelligence (or AI) AI is not a new tech and has been used in many industries but the potential of it is still endless AI can help insurers assess risk, detect fraud and reduce human error in the application process as well as help to create good products and services based on data and analytics The result is that insurers can sell customers the most suitable plans By utilizing AI, we can create chatbots that can interact with customers seamlessly, saving everyone time – and ultimately saving insurance companies money A bot can walk a customer through a policy application or claims process, reserving human intervention for more complex cases 3.2.2 The Internet of Things The next tech that should be applied is the Internet of Things (or IoT) IoT is a system of interrelated computing devices, mechanical and digital machines, animals, or people that are provided with unique identifiers (UIDs) and the ability to transfer 17 https://tailieuluatkinhte.com/ data over a network without requiring human-to-human or human-to-computer interaction It is one of the most important technologies of the 21st century Most consumers are willing to share extra personal information if it means saving money on their insurance policies – and the Internet of Things (IoT) can automate much of that data sharing Increasing the frequency and specificity of data being shared through IoT devices helps provide a more accurate view of their needs and insurers can better understand risk 3.2.3 Developing apps and websites Last but not least, the new generation who all have high-frequency use of the latest technology will eventually become the customers of insurance companies Hence, Manulife should definitely try to research and develop its apps and websites to create modern, friendly, and helpful platforms for its customers if it doesn’t want to be overtaken by young, innovative competitors Conclusion Insurance companies play a very important role for any economy in the world In the context of increasingly advanced and modern technology, increasing competition, the business activities of insurance companies become more and more complex and always face many challenges, requiring insurance companies in Vietnam's insurance industry to gradually develop in both quality and quantity, build a certain foothold and become more competitive Despite many limitations, Manulife Vietnam is gradually on the way to assert its position with the mission of always attaching importance to the stages of management, operations, and credit enhancement to provide quality services, and reputation for customers Manulife Vietnam shows a clear awareness of the importance of business management in the insurance market in general, and the life insurance industry in particular During the period of 2019-2021, Manulife Vietnam has achieved remarkable achievements in its business activities We believe that Manulife will increasingly maintain its goal of being the market leader in the insurance industry in Vietnam and one of the largest insurance groups in the world 18 https://tailieuluatkinhte.com/ Reference - https://www.oecd.org/pensions/Analytical-tools-insurance-market-macro-prude ntial-surveillance.pdf - https://123docz.net/document/1106681-manulife-vietnam-financial-performanc e-analysis.htm?fbclid=IwAR08Fhx2oHGOTJAP5etGlCl0rj3P9TchZfjMj9yTZ AGvaAUY_bhaBEvy47Q#fulltext-content - https://www.manhttps://123docz.net/document/1106681-manulife-vietnam-fina ncial-performance-analysis.htm?fbclid=IwAR08Fhx2oHGOTJAP5etGlCl0rj3P 9TchZfjMj9yTZAGvaAUY_bhaBEvy47Q#fulltext-contentulife.com.vn/vi/mov e.html - https://www.manulife.com/en/products/vietnam.html#Individual - https://www.grin.com/document/279374 - https://docs.google.com/document/d/10NBnQzNI1A7KOYxHyvAryTyyLGHC nigFlbjul0Je0wY/edit?fbclid=IwAR2e9v9PT5ABvqqyu73NddG2xXpav2iDsm 2ZZtWY4BciJP_ELOaWitRKS1I - https://www.empire.ca/sites/default/files/2019-06/FinancialNeedsAnalysisWork sheet-EN-web.pdf - https://www.manulife.com.vn/vi/kien-thuc/cac-loai-hinh-bao-hiem-nhan-tho-co -ban-tai-viet-nam-hien-nay.html?utm_source=Inhouse_GG&utm_medium=DS A&utm_campaign=DSA_Kienthuc_Lifin_Keycities&gclid=CjwKCAjwyaWZ BhBGEiwACslQoztGE953Byg2wlZjcQ20pfIr3lpaDgabPHJuhP1rKKay4pO3w FrDwxoCwWAQA - Bảo hiểm nhân thọ? Hiểu bảo hiểm nhân thọ để đảm bảo quyền lợi (manulife.com.vn) - Bảo hiểm sinh kỳ điều định phải biết tham gia | Prudential Việt Nam - Complete SWOT Analysis of Manulife: 2022 | IIDE - Manulife Vietnam ramps up digital and customer focus approach (vir.com.vn) sales and operations - có tech (epos) 19