With a population now standing at 96 million, Vietnam is viewed as a particularly promising market for insurance companies. According to the General Statistics Office, the local insurance industry posted positive growth in the first half of this year, with total premiums up 17 per cent yearon- year, in which life insurance increased 21 per cent and non-life insurance 10 per cent. The Ministry of Finance’s Insurance Supervisory Authority (ISA) has targeted growth of 20 per cent for the insurance industry for 2019 as a whole.

    The ISA reports that the country has 64 insurance companies, including 30 non-life insurers, 18 life insurers, two reinsurance companies, and 14 insurance brokerage companies.

    Given that digital technologies are now transforming Vietnam’s life insurance industry, insurance companies in the country are developing insurtech (insurance technology) to improve operational efficiencies, support agents and partners, and bring new experiences to customers. The development of insurtech has brought about both opportunities and challenges for life insurers, with digital transformation being one of their top strategic priorities.

    In our Cover Story this month we review the development of insurtech in Vietnam, reporting on how life insurers in the country are accelerating new technologies and collecting opinions from life insurance leaders and industry insiders. Many insurance companies consider Vietnam a strategic market and have consistently invested over the years to grow their business and enhance their technological foundation.

    With one of the world’s lowest life insurance penetration rates, of less than 1 per cent of GDP, Vietnam has a lot of space for the insurance industry to develop. The average annual insurance premium stands at $30; much lower than the global average of $595 and Southeast Asia’s $74. To help the industry speed up its growth, the Insurance Association of Vietnam (IAV), in conjunction with other relevant agencies, must raise awareness among local people about insurance. In the meantime, insurers in Vietnam should make investments in insurtech to make strides forward on their digital transformation journey.