89% consider insurance essential.

89% of people consider insurance essential. Photo: KK

On May 28th, the Vietnam Insurance Association (IAV) released its report on public opinion research and community outreach policies in life insurance.

The study, conducted by IFM Research on 1,265 people in Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, Can Tho, and various rural areas, aimed to outline the financial awareness and trends of Vietnamese people in the context of a volatile economy .

The survey results show that 89% consider life insurance essential in their lives. This rate was recorded across all groups: those currently holding a policy (91%), those who have never participated (86%), and those who have previously participated in insurance (91%).

The main reasons people value insurance are the need for protection against the risks of illness, accidents, and death. 57% of respondents view insurance as a financial "shield" against unforeseen events, while 45% believe it is a tool for stabilizing family finances.

Life insurance is considered essential. Photo: KK

However, the report also points out a notable paradox: Vietnamese people still prioritize "defensive" financial solutions over proactive risk management through insurance. When faced with unforeseen events, 67% of people choose to use their savings, 53% cut spending, and 39% seek additional sources of income.

This suggests that life insurance is currently viewed as an additional layer of protection rather than a core risk management tool or long-term financial solution.

Financial pressure remains the biggest obstacle preventing many people from maintaining long-term insurance policies. According to surveys, the average premium is around 1.8 million VND per month, equivalent to nearly 22 million VND per year – a figure considered quite large given the fluctuating incomes of today.

Furthermore, the preference for short-term investment channels and concerns about long premium payment periods also significantly influence people's decisions to purchase insurance.

The IAV report reveals a clear divergence in financial behavior by age and geographic region. Those under 30 prioritize purchasing large assets and supporting their parents; those aged 30-40 focus on saving for their children; while those over 41 are more concerned with retirement savings.

Although 83% of survey participants stated they had a financial plan, the majority only truly paid attention to it after the COVID-19 pandemic and have not maintained the habit of reviewing it regularly. This indicates that while a financial planning mindset has formed, long-term planning capabilities still need improvement.

The survey also noted clear differences between regions. People in the South tend to plan their finances earlier and for the long term, while those in the North prioritize short-term goals and daily cash flow management. Notably, rural areas in Central Vietnam have the highest percentage of people who have not yet developed a financial plan.

Nevertheless, the market is showing positive signs, with 80% of uninsured individuals indicating their intention to purchase insurance within the next 12 months. According to IAV, this suggests that people are gradually shifting from emotional choices to approaches based on actual financial protection needs.

In particular, the group of young customers aged 22-29 and families with small children are considered the most promising segment of the market, but also demand the highest level of transparency and quality of advice.

With Vietnam recording approximately 1.1 million injury accidents and over 30,000 deaths annually, experts believe that promoting life insurance as a proactive financial protection tool is becoming increasingly urgent.

Source: https://hanoimoi.vn/89-danh-gia-bao-hiem-la-thiet-yeu-975975.html