This figure was shared by Ngo Trung Dung, Deputy General Secretary of the Insurance Association of Vietnam (IAV), at the seminar "Stories Behind Insurance Policies" organized by Tuoi Tre Newspaper on 7/8.
Dung also updated that the insurance industry has completed nearly 24 billion VND in payouts to the families of the victims in the Vinh Xanh boat accident. Life insurance companies alone have paid out over 20 billion VND, including Bao Viet Life, Prudential, Manulife, Dai-ichi, and AIA.
The life insurance sector regained growth momentum in the first half of this year after a period of decline. The IAV leader reported that the total life insurance premium revenue for the first six months reached over 72 trillion VND, a 2% increase compared to the same period last year. New business premiums reached over 13 trillion VND, an 8% increase.
Starting from 1/7, the life insurance industry restructured its products, with companies discontinuing several older policies. According to Decree 46/2023 and Circular 67/2023 of the Ministry of Finance, investment-linked insurance products will be standardized in structure: the main benefits will focus on death and total permanent disability. Supplementary benefits such as critical illness, accident, and hospitalization will be separated into supplementary products.
In this initial restructuring phase, Dung assessed that both advisors and customers need time to adapt to the new products. Consequently, the market is not expected to achieve rapid growth this year. However, with 8% growth in the first half of the year, he considers this a positive sign that the market is regaining customer trust.
Following the recent period, the IAV representative also noted that contracts have been adjusted for greater transparency and simplicity. At the same time, regulators have imposed stringent requirements on businesses and advisors to maximize the protection of policyholders' rights.
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Ngo Trung Dung, Deputy General Secretary of the Insurance Association of Vietnam (IAV), at the seminar on 7/8. Photo: TTO
In reality, there have been numerous instances of claims being denied due to initial misrepresentations by customers. At the seminar, Dr. Nguyen Ngoc Tuan, a lecturer at Pham Ngoc Thach University of Medicine, highlighted some of the reasons for the disconnect between customers and companies.
Through his professional experience, Dr. Tuan observed that patients come from diverse backgrounds and levels of understanding, so misunderstandings about medical conditions frequently occur. This can lead to them misinterpreting terminology in insurance contracts or providing incorrect information during the contract process, not necessarily with the intent to deceive.
He cited a study showing that in the US, 70-80% of lawsuits against hospitals stem from ineffective communication and misunderstandings between patients and hospitals. From this perspective, he believes the government and businesses need to explain policy terms clearly, while advisors must understand and support their clients effectively.
Dr. Tuan also pointed out a common issue encountered when patients file insurance claims. Many patients, after completing their treatment, return to the hospital seeking additional documents to supplement their claim files, as requested by insurance companies. However, hospitals cannot retroactively issue documents after the treatment process has concluded, leading to incomplete documentation for the patients.
Quynh Trang
