Recorded many positive developments

The Vietnamese life insurance market is recording positive developments, especially in the first quarter of 2024.

According to the Vietnam Insurance Association, as of March 2024, the industry's key indicators all recorded impressive growth. Specifically, the total assets of the entire life insurance industry are estimated at VND 801,307 billion, up 9.1% over the same period last year; the total investment is estimated at VND 703,031 billion, up 8.7%; total technical reserves are VND 581,857 billion, up 6.5%; equity is VND 159,409 billion, up 10.8%. Notably, the total insurance benefit payments in the first quarter of 2024 are VND 15,483 billion, up 35% over the same period in 2023.

At the workshop “Restoring trust in the life insurance industry: Vision and solutions”, Mr. Dau Anh Tuan, Deputy General Secretary, Head of the Legal Department of the Vietnam Federation of Commerce and Industry (VCCI), affirmed that the life insurance industry plays an essential role in protecting social security and promoting economic development.

“Life insurance is an industry with a particularly important position in the economy. This is one of the few industries that has its own law, showing its importance and great significance to the economy and people's lives,” Mr. Tuan emphasized.

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Experts discuss solutions to restore confidence in the insurance industry

Life insurance - lots of room and sustainable development

In developed countries, the rate of people participating in life insurance is very high, up to 80 - 90% of the population. Meanwhile, in Vietnam, Mr. Phuong Tien Minh, General Director of Prudential Vietnam, said that by the end of 2023, the Vietnamese life insurance industry will have more than 12 million effective insurance contracts, with approximately 10 million insured people. Therefore, compared to other countries in the Southeast Asian region, the life insurance industry in Vietnam still has a lot of room for development.

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Mr. Phuong Tien Minh - General Director of Prudential Vietnam speaking at the conference

In the in-depth report "The impact of insurance on economic development" in 6 Southeast Asian markets conducted by Prudential in collaboration with PwC, Vietnam is one of the fastest growing economies, with high GDP growth and GDP per capita, along with an increasing middle class. Therefore, the demand for health protection, investment and accumulation of Vietnamese people is increasing, creating a foundation for the life insurance industry to develop strongly.

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Ms. Wai-duen Lee - Deputy Director of PwC Hong Kong (China) presented the Report "Impact of Insurance on Economic Development"

“As long as the Vietnamese life insurance industry balances the interests of three entities: manufacturers (insurance companies), distributors (agents, consultants) and customers, the market will certainly operate sustainably and healthily,” Mr. Nguyen Hong Son, General Director of Chubb Life Vietnam emphasized.

Meanwhile, Ms. Tina Nguyen, General Director of Manulife Vietnam, said that innovating operating processes as well as products and services to ensure transparency, professionalism, and strengthen customer trust is a top priority and a vital factor for life insurance companies.

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Ms. Tina Nguyen - General Director of Manulife Vietnam shared at the workshop

Mr. Ngo Trung Dung, Deputy General Secretary of the Vietnam Insurance Association, said that life insurance businesses need to continue to actively implement measures to improve the quality of products and services.

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Mr. Ngo Trung Dung - Deputy General Secretary of the Vietnam Insurance Association, presented the solutions that businesses are applying to develop the life insurance market transparently and sustainably.

Mr. Dung also said that insurance companies have recently received feedback from public opinion and made many adjustments to increase transparency, specifically: Summarizing contract terms concisely and easily; Providing contract information lookup tools: Applying insurance terminology annotations to help customers easily read and understand contracts; Improving product illustration documents; Explaining in detail about cash flow and investment risks to avoid misunderstandings and unreasonable expectations from customers, supporting customers in building appropriate insurance plans.

Bean Linh