Life insurance and growth challenges in the current economic context

(NLDO) - The rate of people participating in domestic insurance is still very low, only reaching about 11%.

At the seminar "Stories behind insurance contracts" organized by Tuoi Tre Newspaper and the Vietnam Insurance Association on August 7 in Ho Chi Minh City, Mr. Ngo Trung Dung, Deputy General Secretary of the Vietnam Insurance Association, said that life insurance premium revenue in the first half of the year reached more than VND67,000 billion. Of which, new exploitation fees were nearly VND12,000 billion, an increase of 8.5%. The number of new contracts reached more than 896,000, an increase of 22.3% over the same period last year. This is a positive signal, showing that customers' confidence in life insurance is gradually being restored.

However, he said that achieving double-digit growth this year is not easy. Because, from July 1, insurance companies must adjust their products according to new regulations. This takes time for both companies and customers to get used to, so in the last months of the year, the market may stagnate or even decrease slightly. However, this is also a stepping stone for a stronger breakthrough next year.

According to him, the new insurance products are considered beneficial to customers thanks to lower fees, transparent and easy-to-understand benefits. This helps people easily choose products that suit their needs.

Mr. Ngo Trung Dung, Deputy General Secretary of Vietnam Insurance Association

According to Mr. Dung, although the life insurance industry has been present in Vietnam for more than 20 years, the level of development has not yet met expectations. By the end of 2024, the whole country had about 11.8 million life insurance contracts, an increase of more than 1% compared to the previous year, equivalent to nearly 11% of the population. This figure is still low compared to countries in the region such as the Philippines (38%), Malaysia (50%), Singapore (80%) and the US (90%).

Mr. Dung admitted that the insurance industry has recently faced a crisis of confidence from customers. However, the Association and businesses have made great efforts to overcome this. Initial results show positive changes, opening up expectations for the road ahead.

Source: https://nld.com.vn/bao-hiem-nhan-tho-kho-dat-tang-truong-hai-con-so-196250807132031103.htm