Product liability insurance and concerns

Although there are many manufacturers want to buy product liability insurance in order to increase confidence for customers - an effective marketing tool for them. However, few companies can afford product liability insurance and few insurance companies have the courage to offer this product.

Revenue from product liability insurance is still very modest, only about 1% of total revenue, which is the result of a survey at some enterprises have deployed products. Across the market, but no adequate statistics, but a whole array of general liability insurance accounts for only about 2% of the total premium of the market for non-life insurance and compensation percentage is below 10%, Exceptions have an insurance company under the top are the percentage of compensation up to 84% in the first quarter / 2014.

Talk about paradoxes for more supply for product liability insurance, represent an insurance company said the non-life insurance product liability is a fairly complex product in terms of the fees and compensation often. People specialized product called it "long-tail" (long tail) since the inception of customer events can occur long after they buy the product. Meanwhile, insurance companies still have to be responsible, therefore, the risk is very high.

As insurance for products of many large enterprises such as Shell Gas, Big C and Lotte Mart, Insurance Vietnamese representative said that in recent years, the sense of responsibility to buy insurance products were also popular more variable for the manufacturing enterprise and supply products in countries where there is risk of damage to third parties such as gas processing, pharmaceutical, cosmetics ...

However, the representative also confirmed that popular type of insurance in developed countries due to mandatory provisions of law, by the consciousness and the demand from major consumer of products and important Advanced most sense responsible for the supplier's products, but this is a complex type of coverage may be related due to the legal provisions on consumer protection not only in Vietnam but there may be countries where the product is consumed. Therefore, this type of coverage should be provided by large insurance companies have the capacity and experience in the insurance market of Vietnam.

Reportedly, customers purchasing liability insurance type products now mainly foreign enterprises and enterprises with foreign investment or trading firms with international market conditions for buyers Product liability insurance is mandatory in commercial contracts. However, the number of domestic manufacturing enterprises are interested in this type of insurance is also increasing, so buy product liability insurance in addition to bringing peace of mind to customers, this is a effective marketing strategy.

Although there is currently no insurance companies involved in the deployment of this type of coverage (only a few of the non-life insurers in the group market leader and foreign insurance companies), but in the future , with product demand increased strongly, the smaller insurers will certainly be seeking to enhance their competitiveness to advance to the "playground" is.

Of course, between theory and reality has always been a long road, but in the economic context more difficult, demand for property insurance, marine ... down, the product liability insurance may is an attractive segment Other. Moreover, after the economic crisis, the non-life insurance sector is in the restructuring phase of insurance products, changing direction, instead of just focusing on premium products generate higher revenues but customers increasingly diminished as difficult.