General insurance company does not concentrate on online payment

Unlike life insurance company, non-life insurance company does not concentrate on online payment trend – current trend of insurance industry. General insurance sector is not used to online payment due to more complicated payment process than other common goods.

General insurance company does not concentrate on online payment

Online payment when buying general insurance

A staff of a general insurance company says that the rate of payment via cards is still low. Customers still choose to pay by cash. The number stands still even though distribution channel via online has appeared for a long time. In 2015, online payment rates only takes up about 10% of total transactions and fee in electronic business. That number is for all industries. To non-life insurance, the real number is far lower.

Non-life insurance payment process is complex and it’s up to insurance types that customers choose. There are many kinds of insurance products that require high responsibility level and precede check before signing contract like material insurance for used cars or health insurance. That is why customers choose not to pay immediately via online. They wait until they receive contracts from insurance company.

Online payment is popular for travel insurance because it is common and low cost insurance. More and more customers also choose to pay online when renewing contract.

Non-life insurance company like Liberty has high rate of online payment. Liberty has developed their online sale system.

An expert predicts that online payment trend will increase sharply in the future beause of investement of banks and insurance companies. To make more and more customers use online payment, sevel insurance companies promote many promotion programs for customers paying by cash.

Experts also expect that online consumption will increase profoundly in the near future due to the improvement of card market collaborating with banks and payment gateways. Despeite rapid increase, online payment will make sure about the security and safe for customers.

To help customers create online consumption habit, insurance companies offer reduction cost and gift giving campaign for those using online payment. For example, when customers buy car insurance online, they are given additional insurance in addition to get 2 – 4 million VND discount.