Pioneer bank 'tailoring' life insurance products for Vietnamese people

The establishment of Techcom Life Insurance Company, which has just been licensed by the Ministry of Finance, is expected to lead the innovation of the entire industry, as Techcombank has done in the finance and banking sector, with pioneering financial products that have changed the entire industry such as Zero Fee, Automatic Profit or Wealtech.

The Ministry of Finance has just licensed the establishment of Techcom Life Insurance Company. PHOTO: NGUYEN THUY

Meet diverse needs based on deep understanding of Vietnamese people

Currently, more than 80% of insurance products available on the market are applied from successful models in the world of foreign companies. During the distribution cooperation process, Techcombank realized that although the insurance packages are very modern, they are designed based on the culture, financial habits and economic conditions in developed countries, so they still do not meet some specific requirements of Vietnamese people.

Some of these include needs related to the lifestyle and community culture of our country, such as: insurance for specific diseases, integrated products for multi-generational families; insurance associated with community programs; micro-insurance products focusing on basic and short-term insurance needs, or products for freelancers and workers in the digital environment...

Along with the growth of the economy and per capita income, especially when it is expected that up to 30% of Vietnam's population will become middle class by 2030, the demand for life insurance has also changed a lot, with more and more people interested in investment and financial management - which is the knowledge and strength of large banks such as Techcombank. Specifically, the middle class needs life insurance solutions combined with investment to protect assets and long-term financial planning, high-end, comprehensive and personalized health insurance services accessible domestically, and voluntary retirement insurance products.

At the same time, along with the achievements of digital transformation, people of the "tech-savvy" generation who love convenience will tend to see banks as a "one-stop shop" for all financial needs, from payments, loans, investments to insurance. Vietnamese people, especially young people, are increasingly prioritizing flexible solutions, which can withdraw money early or adjust fees when income changes or needs arise.

Accordingly, Techcombank has taken advantage of its customer database and applied AI technology to research and design a superior model that can "tailor" insurance products based on the actual needs and lifestyle psychology of Vietnamese people while also being suitable for the structure, population development trends and legal environment of Vietnam.

Techcombank representative said: With the motto "Customer is the center", TCLife focuses on developing simple, accessible protection solutions, while integrating investment and healthcare elements to comprehensively and outstandingly meet the increasingly diverse needs of customers.

Adding a stable medium and long-term capital channel to the economy

With the characteristic of contracts lasting from 5 to 20 years, the birth of TCLife not only exploits a potential business segment, bringing benefits to investors and shareholders of the bank, but also opens up a stable medium and long-term capital channel, reinvesting in the economy in the new period.

According to the Organization for Economic Cooperation and Development (OECD), by 2024, the global life insurance industry will manage more than $30 trillion in assets, with 60-70% invested in government and corporate bonds, providing financial support for infrastructure and sustainable development projects in countries.

In Vietnam, the Insurance Association (IAV) estimates that in the first 6 months of 2025, total insurance premium revenue will reach VND67,242 billion, of which new operating premiums will reach VND11,728 billion. Total assets of the industry will reach VND910,829 billion, up 10.74%, with VND787,000 billion reinvested into the economy, up 10.25% over the same period.

This capital is mainly allocated to government bonds, corporate bonds, and key infrastructure projects such as highways, renewable energy, and commercial real estate, contributing to reducing pressure on the state budget in financing large projects.

In addition, products such as health insurance and retirement, help reduce the burden of social security, allowing people to be financially independent against risks such as illness or old age. In 2024, life insurance benefits will reach VND 71,400 billion, an increase of 25% compared to 2023, demonstrating the important role of the industry in supporting families to overcome difficult stages in life.

Experts say that the potential for the life insurance sector is still huge. In a report assessing the prospects of the Vietnamese life insurance market by Global Data (a British data analytics company), the total premium revenue (GWP) of the Vietnamese life insurance market is forecast to reach 6 billion USD in 2025. This unit also forecasts that the compound annual growth rate (CAGR) of the life insurance industry will reach 3.2% in the period 2025 - 2029, with the market size reaching about 165.4 trillion VND (equivalent to 6.4 billion USD) in 2029.

However, the penetration rate of life insurance industry in Vietnam is only 14% of the population, lower than 38% in the Philippines or 80% in Singapore, showing that the market still has a lot of potential and challenges.

TCLife, inheriting the technological advantages, strong financial ecosystem and deep understanding of the Vietnamese market from Techcombank, is expected to bring a superior, modern product model, serving fully, accurately and on demand, while enhancing customer experience and promoting innovation in the insurance sector, laying the foundation for a new era of life insurance in Vietnam - where customers are truly at the center of all values.

This strategic move will also strengthen Techcombank's role as a financial "one-stop shop" while fulfilling its commitment with the Government to promote the sustainable development of the Vietnamese economy in the era of national development.

Source: https://thanhnien.vn/ngan-hang-tien-phong-may-do-san-pham-bao-hiem-nhan-tho-cho-nguoi-viet-185250729115426636.htm