The Vietnamese life insurance market enters the second half of 2025 with a determination to innovate. As businesses collectively restructure products extensively under new government regulations, Ngo Trung Dung shares deeper insights into the industry's journey at this new milestone.

Ngo Trung Dung, Deputy General Secretary of the Vietnam Insurance Association. Photo: IAV

Ngo Trung Dung, Deputy General Secretary of the Vietnam Insurance Association. Photo: IAV

The life insurance market is showing signs of recovery. What are your thoughts on this?

The market still faces many challenges, but the first 6 months of the year have shown promising positive signals. Total life insurance premiums market-wide reached an estimated 72,094 billion VND, a 2.4% increase compared to the same period last year. New business premiums reached 13,048 billion VND, an 8.6% increase. The number of active contracts reached 11.7 million. These figures indicate a return of public confidence in the long-term protection value of life insurance, despite market fluctuations and consumer sentiment.

Two other positive figures deserve highlighting. First, benefit payments reached over 28,894 billion VND in the first 6 months, a nearly 6.5% increase year-on-year. Each payment represents not just a contractual commitment but also tens of thousands of stories of sharing and supporting customers during their most difficult times. This is the core value the life insurance industry steadfastly pursues.

Second, total investment back into the economy reached nearly 787,834 billion VND, a 10.25% increase compared to the same period last year. This significant number demonstrates not only the financial capacity of insurance companies but also their role as a key pillar of the national economic and financial system.

With hundreds of thousands of billions of VND invested back into the economy annually, the industry contributes to mobilizing and allocating long-term financial resources, supporting key sectors like infrastructure, healthcare, education, and energy. This capital flow is crucial as Vietnam promotes sustainable growth, strengthens social security, and improves people's quality of life.

Therefore, developing the life insurance industry is not only a market requirement but also essential for building a more resilient economy in the face of increasing global complexities.

What is your assessment of the product restructuring from 1/7 under the new regulations, given concerns that new products are not as attractive as before?

This is not a challenge, but an opportunity—a necessary transformation to elevate the Vietnamese life insurance industry towards greater transparency, modernization, and a true customer-centric approach.

Under Decree 46/2023 and Circular 67/2023 of the Ministry of Finance, from 1/7, investment-linked insurance products will be standardized. The main benefits will focus on death and total permanent disability, while supplementary benefits like critical illness, accident, and hospitalization will be separated into supplementary insurance products.

This change offers clear benefits. For customers, products will be simpler and easier to understand. Unbundling allows buyers to actively choose and design financial protection packages that best suit their needs, age, affordability, and personal goals.

For insurance companies, this is an opportunity to restructure product portfolios for greater efficiency, standardization, easier communication, and enhanced consulting effectiveness. Since the beginning of the year, we have witnessed active participation from life insurance companies, almost all of which have introduced products complying with the new regulations, while focusing on customer experience design and increasing clear and transparent benefits.

For all contracts signed before 1/7 and still in effect, customer benefits remain unaffected. Insurance companies are responsible for fulfilling commitments made in existing contracts. Notably, annually renewable supplementary products will continue to be renewed normally, ensuring uninterrupted protection for customers.

For contracts signed after 1/7, customers should carefully review the payment policy to ensure timely and full payments, establish financial discipline, and secure insurance benefits for themselves and their families.

Product restructuring does not mean benefit reduction. It's a vital step for life insurance to become a more transparent, accessible, and effective financial tool for every Vietnamese family.

An insurance consultant provides analysis to a client. Photo: IAV

An insurance consultant provides analysis to a client. Photo: IAV

What strategic priorities will the industry pursue at this pivotal time to continue its strong growth?

The first priority remains building market trust through transparent business operations, standardizing the consulting team, and strengthening internal supervision. The second is continued investment in technology to enhance the customer experience, from purchasing insurance to claims settlement. Currently, many businesses are successfully implementing claim settlement times measured in minutes.

Finally, the industry will continue to diversify products, focusing not only on protection benefits but also on other essential values like savings, investment, and accumulation, making insurance an integral part of personal finance.

Natural disasters, floods, and epidemics can cause market fluctuations and affect commodity prices, leading people to remain cautious in their spending. So, how is participating in life insurance appropriate at this time?

There are three practical reasons why now is always the best time to get life insurance. First, insurance is always cheaper when you are young and healthy. Health risks increase with age, and many protection benefits will not be approved if you apply too late.

Second, increasing economic and environmental complexities, from epidemics and accidents to critical illnesses, necessitate a well-planned backup plan for every family.

Finally, life insurance has evolved into a flexible financial tool: protection, savings, long-term planning support for children's futures, retirement, and more. Insurance acts as a support for families to remain stable throughout every life stage.

What specific advice do you have for people who are hesitant or lack information?

Start by choosing trusted and reputable insurance brands. Next, meet with well-trained consultants who not only sell contracts but can also analyze your actual needs and offer solutions aligned with your financial capabilities and life goals.

Don't hesitate to ask as many questions as possible about benefits, terms, costs, and coverage. With a clear understanding, you'll find life insurance is not complicated but a strategic decision: to live proactively, withstand any challenges, and build a secure bridge for your loved ones into the future.

Thanh Thu