The Challenges of Companies in the Insurance Industry
This will directly impact the financial income of non-life insurance companies, as short-term deposits make up a significant proportion of their investment asset structure. In an explanation submitted to the State Securities Commission and the Ho Chi Minh City Stock Exchange regarding the fluctuations in business results for Q1 2020, Bao Minh Insurance (BMI) stated that its post-tax profit for the first quarter of this year reached over VND 40.9 billion, a 12% decrease compared to the same period in 2019. This was due to the negative fluctuations in the stock market, sharp declines in stock prices, and a surge in the provision for impairment losses on securities, which affected profits. Moreover, the intense competition among businesses in this sector also impacted core profits. In light of this, to avoid disruption in their business operations, insurance companies need to establish an effective system for managing cash flow, accounts receivable, and financial transactions.
In reality, companies operating in this industry all have marketing campaigns with large-scale investments and budgets. However, because of this, if they are complacent in the process of statistics and post-campaign evaluation, businesses are at risk of having a subjective view and making decisions that are not truly optimal.
With a large number of employees and multiple departments supporting operations, tracking and evaluating the performance of each employee, especially the customer service and advisory teams, such as call volumes, call durations, appointments, and interaction history with customers, as well as setting appropriate KPIs, is no simple task.
