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Vietnamese life insurance market faces credibility crisis

Over the six months since the year beginning, the total premium return of Vietnamese insurers has reduced by 5% to 112.7 trillion dong ($4.7 billion). The online resource UkrStrakhovanie learned this from the Insurance Association of Vietnam report.
Vietnamese life insurance market faces credibility crisis

The life insurance sector decreased premium return by 7.9% to VND 77.8 trillion ($3.23 billion), the number of new contracts in the 1st HY of the year amounted to just over one million, which was 31.3% less than in the same period last year.

Over 60% of Vietnam's life insurance sector consists of investment insurance agreements, but this figure has dropped by almost a third compared to the same period last year. Other types of life insurance also saw a significant decline in the number of contracts.

According to industry analysts, this significant decrease in the number of new contracts is explained by the “consequences of credibility crisis associated with insurance sales.” In general, experts find the results for the 1st HY of the year pessimistic.

Let us remind that according to the Insurance Supervision Authority of Vietnam, as of January 2020, the penetration level of life insurance in the country is one of the lowest in the world and does not exceed 1% of GDP, and the average insurance premium is $30 compared to the world average of $595.

Source: https://www.ukrstrahovanie.com.ua/news/vetnamskij-rynok-strahovaniya-zhizni-stolknulsya-s-krizisom-doveriya-so-storony-klientov

Photos are from open sources.

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