Maintain trust

- The majority of life insurance companies operating in our country have reported a decline in profits in the first half of 2025. So, what exactly does "rising costs and underperforming financial activities" mean?

- In the life insurance business, expenses include insurance claim payments, technical reserves, commission payments, and sales and administrative expenses. In normal circumstances, these expenses are substantial. However, when a business experiences a prolonged decline in profits, high expenses become a significant risk.

- One would think that after the incidents of many insurance companies exploiting customers a few years ago, they had found a way to do business successfully?

- The only right path forward is to be honest with customers. After many customers canceled their contracts, the business results of most life insurance companies plummeted. Rebuilding trust requires a long time. Many companies in this sector have been forced to undergo painful restructuring, completely replacing their entire leadership team.

- That's understandable. The life insurance business aims to protect. For over a decade, the life insurance industry in our country has been competing to increase revenue and profits through unethical means. The harsh consequences have made them wake up and conduct business honestly. To maintain customer goodwill, businesses always need to preserve trust.

TU QUEO

Source: https://www.sggp.org.vn/giu-duoc-long-tin-post813169.html