Sustainable Development – An Essential Trend
According to the “Report on the ESG Practices Readiness in Vietnam” conducted by PwC in 2022, ESG is a framework that helps stakeholders identify and measure the sustainability of an organization’s activities.
PwC’s report also found that up to 50% of respondents said ESG concerns affect their purchasing behavior, and 80% said ESG is an important factor in investment decision-making. This explains why customers are increasingly looking for businesses with ESG-oriented products, as they align with their financial preferences and values. On the other hand, sustainable development also brings many benefits to businesses, such as improving brand reputation, maintaining a competitive advantage, attracting investment and talent.
Not standing apart, many life insurance companies have been integrating ESG criteria into their business and investment strategies.
An example of the “social” factor that the life insurance industry contributes to is addressing the financial concerns of multiple generations in the context of Vietnam’s aging population. On the journey with the Vietnamese government to achieve the goal of having 15% of the population participating in life insurance by 2025, the role of the insurance industry in reducing the burden of healthcare costs and taking care of people’s health is significant. As of the end of 2023, according to statistics from the Vietnam Insurance Association, the life insurance industry has also attracted and created employment opportunities for about 724,000 workers in the Vietnamese market. The insurance industry has been and continues to play an important role in stabilizing people’s lives and improving their quality of life.
From a governance and environmental perspective, the life insurance industry contributes to environmental protection through “digital transformation – green conversion” activities. There are increasingly digital insurance products being introduced and sold through e-commerce platforms. There are also compact insurance contracts using QR codes to conveniently access information, reducing the use of printed paper and storage. Insurance services are also being digitized, empowering users to perform transactions on applications and websites instead of at physical counters.
Sustainable Development at Prudential
As a role model in the industry, Prudential Vietnam always considers sustainable development as an important strategy in its business and organizational operations.
According to a representative of the company, Prudential’s sustainable development strategy is reflected in three main aspects: providing simple and accessible health and financial protection solutions, responsible investment, and sustainable business operations. Among them, Prudential always emphasizes human factor as the key focus such as meeting customer expectations, creating the best working environment for employees, and contributing to social and community issues.
In line with the above direction, Prudential said it will continue to develop simple and accessible health protection solutions. By the end of 2023, Prudential will introduce the Pru-Năng Động product to customers in the “fixed-price insurance shop” model. With just a few simple steps on the online shopping portal, customers can proactively choose the insurance package that suits their needs and financial capabilities.
Optimizing management operations towards green operation goals, Prudential’s digital initiatives have gradually modernized customer care and advisory work. Statistics from the company show that nearly 100% of insurance participants submit their profiles to the company online. Every day, about 500 insurance claims are received, and about 80.4% of claims are submitted online.
For many years, Prudential’s corporate social responsibility activities have always incorporated sustainable community development goals. Prominent projects such as “Safe to School” and “Financial Education – Cha-Ching” aim to build fundamental knowledge and skills necessary for students, especially at the elementary level.
Ms. Mandy Tran – Deputy General Director of Agency Channel Business Development – representing Prudential receives the cup and certificate at the announcement ceremony of the Top 50 Excellent Vietnamese Companies 2023
Firmly committed to sustainable development strategy, Prudential has been recognized in numerous reputable rankings for businesses. Most recently, on January 18, Prudential was the only life insurance company honored in the Top 50 Excellent Vietnamese Companies 2023 by Vietnam Report.
The ranking honors companies that have overcome challenges in the context of the economic slowdown, maintained stable business efficiency, and contributed to the community through sustainable development initiatives and projects during the period 2022-2023. Previously, Prudential also received commendation from the Chairman of the People’s Committee of Ho Chi Minh City for its outstanding contribution to the State budget in 2023.
