Foreign life insurers stepping up game in Vietnam

Foreign insurance companies are ramping up activities in Vietnam

Foreign-invested life insurers launch a series of new products

Many foreign life insurance companies have launched new and impressive products in the recent past. By the end of August 2018, Sun Life Vietnam launched its “SUN—Huu tri thanh nhan” (Leisure retirement) product, which is known as Sun Life’s trademark product due to the company’s strength in voluntary retirement programme. By the last day of July 2018, the total assets of Sun Life Vietnam’s pension funds reached VND1.3 trillion ($5.75 billion), serving over 60 businesses with about 30,000 labourers.

Meanwhile, a big company from Italy, Generali Vietnam, focuses on health protection products. Its new product launched in September 2018, “Bao hiem ung thu VITA—La chan vang” (Cancer insurance VITA—the gold shield) which covers all types of cancer and is 100 per cent refundable if customers do not contract a disease. This is the only cancer insurance policy on the market.

Another big firm from the US, BIDV MetLife launched its new product named “Qua tang hanh phuc” (Happy gift) in September 2018. The product is designed to meet customer’s demands at every stage of life. Beside financial protection, this is the first life insurance product in Vietnam to integrate protection against five common diseases, including cancer, stroke, heart attack, liver failure, and kidney failure.

Old wine in a new bottle

Beside new products by new companies, the life insurance market is still a relatively novel area for foreign enterprises because some of the new brands are more veteran players under new aliases.

The most notable face is Mirae Asset Prévoir, a both familiar and new and strange company in the Vietnamese life insurance market. While the Mirae Asset Prévoir brand has just been launched in mid-2018 as a combination between Mirae AssetLife from Korea and Prévoir from France, which was an experienced insurer in Vietnam, known for its strategy of selling insurance through the post office.

Khamsaya Soukhavong, general director of Mirae Asset Prévoir, said that with Mirae Asset Life as a strategic partner, the company will take advantage of its technology, innovation, networking, and bancassurance experience to achieve its long-term goals.

While Mirae Asset Prévoir was formed by a joint venture, Aviva Vietnam was formed by a withdrawal when VietinBank withdrew from the VietinBank Aviva joint venture a year ago. After the exit, Aviva Vietnam showed great ambitions by doubling its charter capital to VND1.66 trillion ($7.32 billion).

According to Aviva Vietnam’s representative, the company’s development strategy in the upcoming time will be to strongly invest in digital technology and build a modern infrastructure system to meet the increasing demands of customers in the new technology era.

Developing digital technology is the centre of Aviva Vietnam’s development strategy and will be developed throughout the company's core activities, including the development of distribution channels.