Life insurance in Việt Nam gains importance among public: IAV

Life insurance in Việt Nam gains importance among public: IAV

An IAV research indicates that 89 per cent of respondents consider life insurance highly important in daily life.

Life insurance in Việt Nam is increasingly recognised as an important financial solution in people’s lives, not only among existing customers but also among those who have not yet purchased coverage, according to the Public Opinion and Community Engagement Policy Research Quantitative Report, which was recently released by the Insurance Association of Vietnam (IAV).

The research, which IAV conducted for the first time in over 30 years of development of Việt Nam’s life insurance industry, was carried out by market research firm IFM Research with 1,265 respondents nationwide, covering Hà Nội, HCM City, Hải Phòng, Đà Nẵng and Cần Thơ across both urban and rural areas.

The research indicates that 89 per cent of respondents consider life insurance highly important in daily life. Among them, 91 per cent of current life insurance owners, 86 per cent of non-life insurance owners, and 91 per cent of former life insurance policyholders shared this view.

Moreover, the study highlights relatively positive levels of individual understanding regarding life insurance, with 58 per cent of respondents self-assessing their knowledge as good. This understanding is consistent across different age groups, with 57 per cent in the 22-29 age range, 59 per cent in the 30-40 group, and 58 per cent among those over 40.

Life insurance in Việt Nam is increasingly recognised as an important financial solution in people’s lives. — Photo Courtesy of Insurance Association of Vietnam (IAV)

The study reveals that the primary reasons for considering life insurance necessary are linked to fundamental household requirements. Many respondents stated that life insurance would provide protection against risks, illnesses, accidents, and death, while others emphasised its role in maintaining financial stability and supporting families.

Ralf Matthaes, managing director of IFM Research, said: “Public financial behaviour remains primarily defensive. Although demand for and perceptions of life insurance are highly positive, actual ownership remains relatively low. Life insurance is still viewed mainly as supplementary financial protection rather than a core risk-management tool or a long-term investment solution. This presents both a challenge and an opportunity for brands to reshape the market through simpler policy wording, greater transparency, higher-quality advisory services and more structured financial education”.

Life insurance market is becoming increasingly mature

According to IFM Research, consumers consider several factors essential for an insurance brand to be viewed as trustworthy: clear information and policy terms, strong financial capability and professional advisors who can explain products in an accessible way.

In the 22-29 age group, recommendations from friends and family play a more important role, reflecting reliance on trusted sources as time or financial knowledge is limited.

By contrast, respondents with children paid particular attention to the financial strength of insurers, aligning with their desire for long-term security for their families.

The research also shows that life insurance is especially common among people aged over 30 - a life stage when many begin taking on greater financial responsibilities related to family, children, parents and long-term goals.

Life insurance in Việt Nam is increasingly recognised as an important financial solution in people’s lives. — Photo Courtesy of Insurance Association of Vietnam (IAV)

Interestingly, 80 per cent of those currently without life insurance plan to purchase it within the next 12 months, indicating substantial untapped demand. 

This shift suggests that consumers are approaching insurance more cautiously, engaging in thorough research, comparisons, and evaluations before committing long-term.

Nguyễn Phong Cầm, deputy secretary general of IAV said: “This indicates that the market is shifting from emotional decision-making toward choices based on actual needs. That is a sign of a more mature market. As customers ask more informed questions, insurers have greater opportunities to provide more tailored advice, design more suitable solutions and build longer-term relationships with consumers”.

According to IFM Research, the findings suggest that life insurance should continue to be positioned as a proactive financial protection tool, supported by transparent benefits and stronger post-sales services to build consumer confidence and encourage continued engagement with insurance products.

Recent risk data underscores the urgency. Statistics from Việt Nam’s Ministry of Health show that, on average, around 1.1 million injury cases receive examination and treatment at healthcare facilities each year, while more than 30,000 people die annually from injuries. Road traffic accidents, drowning and workplace accidents remain among the leading causes of injury-related deaths. 

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