Proposal to supplement regulations on digital transformation in the insurance sector

Continuing the 10th Session, on the morning of November 3, the National Assembly discussed in groups the draft Law amending and supplementing a number of articles of the Law on Insurance Business.

Piloting new insurance products and models applying technology

Delegate Ta Dinh Thi (Hanoi Delegation) assessed that the draft document was carefully prepared, but it is necessary to add clearer regulations on the application of science , technology and digital transformation in the insurance sector.

According to the delegate, digital transformation in the insurance industry will help improve operational efficiency, optimize costs, create new products, enhance customer experience, and ensure transparency and system safety. “This is an inevitable trend, in line with the Party’s major policy on developing science, technology and innovation,” the delegate said.

Delegate Ta Dinh Thi ( Hanoi Delegation).

Pointing out a number of issues that need to be improved, delegate Ta Dinh Thi emphasized the need for clear legal definitions for new insurance business models based on digital platforms, such as on-demand insurance, behavioral insurance, and shared insurance, to create a level playing field, encourage innovation, and protect the interests of stakeholders.

In addition, the draft needs to specifically regulate the use and protection of Big Data and Artificial Intelligence (AI) in insurance activities. “Technology helps businesses analyze risks, personalize products, and detect fraud. However, it is necessary to ensure compliance with the Law on Personal Data Protection, avoid discrimination in pricing, and require algorithm transparency,” the delegate noted.

In addition, the Hanoi delegation proposed institutionalizing the application of technology in administration, management and supervision of both enterprises and management agencies. Enterprises should be encouraged to use digital platforms to manage contracts, compensation and information security. Management agencies, such as the Ministry of Finance, also need to apply data technology for more effective supervision.

Another issue mentioned by delegates is that piloting new insurance products and models using technology should be allowed. The Law on Science and Technology has provisions, but the Law on Insurance Business needs to be more specific to ensure consistency.

From the above contents, delegate Ta Dinh Thi proposed to add a new article (Article 5a) in the draft, regulating the application of science and technology and digital transformation in insurance business, including: using big data, artificial intelligence, information security, piloting new models and assigning the Government to provide detailed instructions.

"The addition of this regulation will create a strong driving force for the insurance industry to develop, contributing to promoting socio-economic growth," the delegate emphasized.

Need to supplement principles on transparency of life insurance contracts

Commenting on the draft Law, delegate Nguyen Thi Thuy (Thai Nguyen Delegation) pointed out the shortcomings related to life insurance contracts. Ms. Thuy said that she had borrowed a number of insurance contracts from different companies for research, but for someone with experience in law, reading them was still "really difficult to understand".

Delegate Nguyen Thi Thuy (Thai Nguyen Delegation). (Photo: DUY LINH)

The Thai Nguyen delegation pointed out that in reality, each insurance contract is several dozen pages long with many specialized terms related to finance and insurance. Because it is difficult to understand, insurance buyers often entrust their trust to the team of consultants, often their friends and acquaintances.

From that reality, the Vice Chairman of the Committee on Law and Justice suggested that when amending this law, it is necessary to pay more attention to regulations related to the content of life insurance contracts, in which, in addition to the requirement to ensure absolute honesty, it is necessary to add the principle of transparency of insurance contracts.

From the principled regulations, delegate Thuy suggested that the Ministry of Finance should be assigned to provide detailed regulations to design the contents of life insurance contracts and insurance companies should comply with them, in order to ensure the rights of insurance participants.

There needs to be a mechanism to monitor the conversion of insurance agents.

Discussing in the group, delegate Doan Thi Le An (Cao Bang delegation) was interested in the content of amending Clause 1, Article 127 of the draft regulation: Individuals who are acting as insurance agents for life insurance companies cannot concurrently act as agents for other life insurance companies; and similarly for non-life insurance companies...

Delegates expressed agreement with the regulation that individual insurance agents can only act as agents for one business in the same type of insurance to ensure transparency and avoid conflicts of interest when an agent works for many businesses in the same type of insurance.

Discussion scene at the group on the morning of November 3. (Photo: DUY LINH)

However, delegates suggested that it is necessary to clarify what "type of insurance" is - life or non-life - and whether it should also be applied to ancillary products, micro-insurance or new technology insurance?

For example, a micro-insurance agent may want to work with many small businesses, and if it is absolutely banned, it may limit new connection models. Delegate Doan Thi Le An suggested adding transitional provisions or exceptions for micro-insurance and technology insurance if they are strictly managed.

At the same time, there needs to be a mechanism to monitor agent transfers: if an individual agent wants to transfer from company A to company B, it is necessary to stipulate a waiting period, notify, and ensure the rights of insurance participants.

Nhandan.vn

Source: https://nhandan.vn/de-xuat-bo-sung-quy-dinh-ve-chuyen-doi-so-trong-linh-vuc-bao-hiem-post920181.html