Health Insurance – Opportunities and Challenges of Vietnamese Insurance Businesses

Abstract

Nowadays, business operations are rapidly changing, demanding companies to constantly grasp market trends, utilize modern achievements in business, and have suitable business strategies and products to survive and thrive in the market. Insurance businesses in Vietnam are also following this trend. Under the development of the economy, politics, and society, the cost pressure on people's livelihoods is increasing. Particularly, healthcare costs in hospitals are a financial risk because not everyone has strong financial resources to cover accidents, illnesses, or diseases. Choosing health insurance is a priority for many people to protect their current and future financial risks. This presents an opportunity for insurance businesses to develop the market, assert their position in the insurance business market, increase revenue to survive amidst increasingly challenging business operations. However, the process of selling health insurance faces numerous difficulties and barriers such as consumer habits, intense competition, legal barriers, and more. Hence, there's a need for solutions to seize opportunities and overcome these challenges in developing health insurance products to aid the growth of insurance businesses. This article focuses on: (1) An overview of health insurance; (2) The current situation of health insurance business in Vietnamese insurance companies; (3) Identifying opportunities and challenges in selling health insurance products; (4) Proposing solutions to develop the business of health insurance products for insurance companies.