The insurance industry is trying to restore customer confidence - Photo: AI
Market research and consulting firm Vietnam Report has just published an important report related to the insurance market in Vietnam, including life and non-life insurance.
Insurance Industry: Overcoming Difficulties After the Crisis of Trust
According to statistics from insurance companies' financial reports, Vietnam Report found that in the past 5 years, the insurance market in Vietnam has gone through 3 main stages: outstanding growth, deep decline due to a crisis of confidence, and efforts to change to overcome difficulties.
In the period 2020 - 2022, this market recorded positive growth thanks to the effect of the COVID-19 pandemic. Each year, about 30% of insurance companies increased their revenue by over 25%. In terms of pre-tax profit, more than 50% of companies recorded growth, despite increased compensation costs and technology investment, thanks to digitalization efficiency and operational control.
However, entering the 2023 - 2024 period, the business picture of the insurance industry shows signs of a strong reversal. The main reason comes from the crisis of confidence related to life insurance sold through the banking channel (bancassurance), causing a wave of contract cancellations and a decline in new premium revenue to occur on a large scale.
According to Vietnam Report statistics , more than 44% of businesses recorded a profit decrease of over 25% in 2024, the highest level in the entire 2020 - 2024 period.
Revenue also continued to be sluggish, with only nearly 7% of businesses achieving growth of over 25%.
By 2025, the market is showing signs of significant recovery. In the first four months of this year alone, total market fee revenue is estimated at nearly VND 74,900 billion (+5.4% over the same period last year).
According to the survey, about 54% of businesses expect the market to grow by 5-10% this year, led by the resonance of internal recovery and policy momentum.
Discipline the violating party, impose additional terms when selling insurance at the bank
The market is also recording positive changes from consumers. After a wave of contract cancellations in the past three years, many customers are becoming more proactive in researching and choosing insurance products.
Vietnam Report 's survey shows that the rate of people who correctly understand insurance products has increased from 44% (in 2023) to 61% (in 2025). In particular, with investment-linked insurance - which has been controversial, the rate of buyers who do not fully understand the product has dropped sharply from 98% to 54%. Mixed insurance and periodic payment products also recorded a decrease in misunderstanding rates, to 45% and 47%, respectively.
Notably, 53.8% of businesses have established strict disciplinary mechanisms. In particular, consultants who repeatedly violate the law will be severely punished or have their cooperation terminated, in order to eliminate cases of incorrect and non-transparent advice.
61.5% of businesses said they have added clearer liability terms. Not only to better control cross-selling activities, but also to increase transparency, minimizing the situation of forcing customers to buy insurance when borrowing capital.
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Source: https://tuoitre.vn/bi-to-ep-mua-bao-hiem-khi-vay-von-nhieu-cong-ty-cai-them-dieu-khoan-voi-ngan-hang-20250611134705475.htm
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