Vietnam's motor insurers are still grappling with getting the basics right - but already they are being forced to get to grips with AI, cyber and telematics, according to Association of Vietnamese Insurers deputy secretary general Ngo Trung Dung.
Giving the opening address at the 6th Asia Motor Insurance and Claims Management Conference being held in Hanoi, Vietnam Mr Dung said, “While Vietnam is still struggling with the traditional issues in motor insurance as a bread and butter challenge, the rest of the world is looking at the age of autonomous vehicles.”
Vietnam will simply have to play catch up and this is too important an issue not to merit the attention of all insurers in Vietnam. “Motor vehicle insurance in Vietnam takes one third of total non-life insurance premiums and is an important line of business for almost all non-life insurers in the market,” he said.
The motor insurance sector in Vietnam had better make sure that it is ready for the technological changes that are coming. “Recently we have witnessed many changes in the motor industry and it is continuing to evolve - from traditional vehicles to those with advanced in-car technologies; from electric cars to, in the near future, automated driverless cars,” he said.
Or the issue of cyber risk, Mr Dung said, “Driverless cars are very safe in theory, however they might become a catastrophe if they are attacked by hackers. In the film Fast & Furious 8, the hacker exploited the software being used in thousands of cars in New York and converted these cars into ‘ghost cars’ which were remotely controlled, causing catastrophic chaos in the streets.” These are very real risks for which the motor insurance sector had better start to develop policies.
And underwriters will also have to adapt to a brave new future too. “There is a new underwriting concept in motor insurance: Car-usage based insurance, predicated on telematics technology. Insurance companies will be able to calculate premiums based on a driver’s car usage and driving behaviour.”
Vietnam is a fast developing economy and to ensure that its motor insurance sector stays on top of developments, it has better start to learn from the best players in the industry.
The 6th Asia Motor Insurance and Claims Management Conference, organised by Asia Insurance Review in Hanoi, concludes today.