Many businesses strengthen communication about the benefits and rights of non-life insurance. Photo: HD

Solving concerns about online shopping

According to the 2023 White Book on Vietnam e-commerce by the Department of E-commerce and Digital Economy (Ministry of Industry and Trade), the Vietnam's retail e-commerce market scale reached US$20.5 billion, an increase of about 25% compared to 2022. With 61 million online consumers, the average value of online shopping per person is about US$336.

In the E-Commerce Business Index Report (EBI) 2024, the Vietnam E-commerce Association (VECOM) estimates that Vietnam's e-commerce will continue to grow strongly. In 2024, it is estimated to increase by 25% compared to 2023 to over US$25 billion. In addition, according to research by Statista Data Company, Vietnam's e-commerce is ranked in the top 10 countries with the highest e-commerce growth rate in the world (as of December 2023).

Because of this strong development trend, all fields want to find opportunities to expand their production and business, increase sales services, including the insurance industry. Micro-insurance in e-commerce such as travel insurance, cargo insurance, shipping insurance, etc. have become popular services.

According to the provisions of the Law on Insurance Business No. 08/2022/QH15 passed by the National Assembly on June 16, 2022, micro-insurance products must be designed simply, aiming at basic insurance needs, with low insurance premiums to suit the needs and affordability of all people.

A representative of Saigon - Hanoi Insurance Corporation (BSH) said that with the advantage of low insurance premiums, from only VND550 per product, micro-insurance has become a solution to solve concerns in online shopping when there is a third party - the insurance company that takes responsibility if there is any damage during the transaction. With BSH, in addition to providing non-life insurance products, the company also provides insurance products for goods during domestic or international transportation against damage caused by fire, natural disasters, accidents, etc.

Many other non-life insurance companies also have a strategy to develop insurance products for buyers on e-commerce platforms, with payment benefits of up to 500% of the value of the insured products at the time of sale... Businesses will coordinate with e-commerce platforms to provide insurance packages. When there is a compensation, the customer will provide relevant information to the insurer online and the compensation amount will depend on each type of insurance.

For example, on the Shopee e-commerce application, when purchasing fashion products, customers will be able to choose to use a fashion insurance package worth VND 3,999 for each product to protect the product from damage due to unexpected incidents, contact with liquids or damage during use with insurance benefits of 75% of the product's value. The insurance company commits to making online claims and paying compensation only 1 day after the claim is resolved.

Upgrading infrastructure and enhancing communication

With the above advantages, many forecasts suggest that the trend of microinsurance for this field will continue to develop in parallel with e-commerce in the coming time.

Previously, the Law on Insurance Business 2022 added principles, requirements, subjects and forms of providing insurance services and products in the online environment to suit the trend of the fourth industrial revolution. Therefore, Circular No. 67/2023/TT-BTC dated November 2, 2023 of the Ministry of Finance detailing the implementation of a number of articles of the Law on Insurance Business, Decree No. 46/2023/ND-CP dated July 1, 2023 of the Government detailing the implementation of a number of articles of the Law on Insurance Business have set out specific and strict requirements for this content.

For example, insurance companies providing insurance services and products on the network environment must comply with requirements on services, technology, security and data storage according to the provisions of the law on electronic transactions, network information security, network security, etc. Therefore, insurance companies must upgrade their infrastructure and find solutions to provide insurance products on the network environment.

However, because this is not a compulsory type of insurance, but according to the choice of consumers, there are still a number of consumers who do not fully understand the benefits and effects of insurance products on the e-commerce platform. Therefore, the communication at this time needs to be promoted to help improve the general awareness of people about insurance issues. BSH representative said that the company has made efforts to reach Gen Z students to disseminate necessary knowledge about insurance, thereby serving as a bridge to help improve people's general awareness of non-life insurance issues in the field of e-commerce in particular and other fields in general.