Vietnam’s insurance revolution: embracing tech to transform the industry.

February 25, 2024
1 min read

TLDR:

  • Vietnam’s insurtech sector has experienced explosive growth since 2018
  • The sector is driven by technological advancements and changing consumer expectations

In Vietnam, the insurance industry is undergoing a transformation through insurtech companies that are leveraging technology to revolutionize how insurance is perceived, bought, and sold. The ‘Vietnam insurtech: Navigating challenges and capitalizing on emerging opportunities’ report by FiinGroup highlights the rapid growth of the sector, fueled by innovations that cater to the modern consumer’s expectations.

The catalysts of change in Vietnam’s insurtech sector include a remarkable net revenue Compound Annual Growth Rate (CAGR) of 255% from 2018 to 2022. This growth is driven by the country’s low insurance penetration rate and the increasing demand for more accessible and efficient insurance services. However, the sector has faced challenges, including a recent insurance scandal that highlighted the need for transparency and reliability in insurance services.

Despite these challenges, companies like Momi are venturing into life insurance through investment-linked products, aligning with the government’s goal to increase life insurance coverage. The path forward for insurtech companies in Vietnam includes addressing challenges such as limited funding, dependency on traditional insurers, and regulatory gaps. However, there are promising opportunities for the sector to integrate insurance services into platforms with multi-million user bases, making insurance more accessible and understandable.

The future of Vietnam’s insurtech sector looks promising, with opportunities for tailored insurance products that cater to diverse demographic needs. Technologies like Artificial Intelligence and blockchain are revolutionizing risk assessment and claims processing, while the industry’s focus on climate insurance highlights a commitment to addressing pressing challenges. As insurtech continues to evolve, it will play a pivotal role in shaping the future of insurance in Vietnam and beyond.

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