Life insurance rebounds with renewed growth and trust

According to data from the Insurance Association of Vietnam (IAV) released in late July, total premium revenue in the first six months reached approximately $2.7 billion, including nearly $470 million from new business. The number of active contracts rose just over 1 per cent on-year to surpass 11.7 million, while total assets jumped by around 11 per cent to stand at $36.4 billion.

Both equity and charter capital in the sector saw steady growth, with equity up 5.3 per cent and charter capital rising just over 1.3 per cent.

During the same period, insurance benefit payments were estimated at $1.1 billion, reflecting a more than 4 per cent increase from last year.

Ngo Trung Dung, deputy secretary general of the IAV, said the figures reflect both industry resilience and improving public sentiment. "These positive results show the efforts of life insurers to restructure and adapt," he noted, "and signal a growing recovery in customer trust and stable growth across the entire industry."

In addition to innovations in product portfolios, the sector’s growth has been fuelled by the continued application of technology to enhance customer experience, with businesses focussing on improving agent training and expanding office networks.

Over the past six months, southern-based FWD Vietnam has opened four new general agency offices in Ho Chi Minh City, Hanoi, Thanh Hoa, and Nghe An, while Chubb Life Vietnam has expanded its presence with four new Infinity business partner offices in Binh Thuan, Quang Ninh, Danang, and Thanh Hoa.

The sector has also placed a strong emphasis on quality control of distribution channels while enhancing training for agents.

Manulife Vietnam, for instance, has partnered with Hanoi Medical University and the Vietnam Young Doctors Association to provide essential medical and public health knowledge to its agent network.

Tina Nguyen, CEO of Manulife Vietnam, believes the initiative shows the company’s commitment to enhancing service quality and building a new generation of advisors who are both financial experts and health ambassadors. "The initiative aims to help customers protect their health and financial wellbeing," she said.

The industry also saw notable shifts in market share for new business premiums, reflecting changing momentum among life insurers.

Bao Viet Life held firm at the top, while AIA and Manulife stood out for their strong growth. Rounding out the top five were Dai-ichi Life and Generali.

Insurance, particularly life insurance, is undergoing a major restructuring to comply with new regulations under Decree No.46/2023/ND-CP, which details the implementation of several provisions of the Insurance Business Law, as well as the Ministry of Finance’s Circular No.67/2023/TT-BTC, providing guidelines for certain aspects of the same law.

Accordingly, from July 1, investment-linked insurance products will only cover death and total permanent disability benefits, while supplementary benefits such as critical illness, accidents, and medical expenses will be separated.

This change will allow customers to more easily choose and better protect their benefits.

Dung of the IAV believes the revisions under Decree No.46 are a key step in restructuring the life insurance sector, helping improve transparency and better protect policyholders. A major shift is the clear separation between insurance products and financial investment tools.

"With these changes, insurers are rolling out simplified, transparent products that offer more practical protection," Dung said. "By unbundling risk benefits into distinct offerings, customers can select coverage based on their specific needs – minimising misunderstandings and potential disputes down the line."

According to industry leaders, the first half of 2025 marks just the initial stage in the life insurance sector’s broader restructuring. Ongoing regulatory reforms, evolving consumer expectations, and rapid technological advancement are expected to drive a more in-depth transformation across the market.

In this new phase, the focus is shifting away from rapid growth. Long-term success will depend on adaptability, rebuilding trust, and pursuing sustainable, customer-centric development.

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