Life insurance sector saw a slight improvement in the first quarter

Ngo Trung Dung, vice general secretary, IAV

According to Ngo Trung Dung, vice general secretary of the IAV, the number of new contracts in the first quarter of 2025 reached nearly 342,000, an increase of 4.3 per cent on-year. Of which, the investment-linked insurance product group still accounted for the highest proportion with more than 54 per cent of the total number of new contracts, despite an on-year decrease of 7.7 per cent. General insurance products, which are the main product line of many businesses, continue to account for the largest proportion with 47 per cent, down 8.9 per cent on-year.

"In contrast, unit-linked insurance products increased slightly, accounting for 7.2 per cent and increased by 2.6 per cent on-year. This indicates that investors are gradually paying more attention to products associated with investment performance," Dung said at a Prudential event in Hanoi on May 12.

Term insurance products recorded impressive growth, accounting for over 30 per cent and increasing by just under 20 per cent on-year, while mixed insurance products showed signs of sharp decline with a proportion of 4.3 per cent, down more than 36 per cent for the period.

Other insurance products such as health insurance, retirement and whole-life insurance made significant progress, accounting for 11 per cent of the total number of new contracts and growing by 118 per cent, reflecting customers' increasing interest in long-term protection and comprehensive care products, he highlighted.

However, the total number of contracts in effect at the end of the period decreased by 5.5 per cent on year to nearly 11,450,000 contracts. Universal insurance products still hold an overwhelming position with 57.6 per cent, followed by mixed insurance products at almost 24 per cent.

According to the IAV, the total new premium revenue in the life insurance sector was estimated at VND5.58 trillion ($223 million) in March, up by 2.4 per cent on-year. The leading firms in terms of new premium revenue are Bao Viet Life with VND1.37 trillion ($54.8 million), AIA with VND642 billion ($25.7 million), Dai-ichi Life with VND634 billion ($25.4 million), Generali with VND441 billion ($17.6 million), and Prudential with VND401 billion ($16 million).

The total cumulative premium revenue of the entire life insurance industry in the first quarter of 2025 is estimated at more than almost VND34 trillion ($1.35 billion), up 1.2 per cent on-year. The revenue structure continues to reflect the advantage of the general linked product group, accounting for 56.4 per cent of total revenue. Mixed and unit-linked insurance products account for 14.2 per cent and 13.9 per cent, respectively. The remaining products such as whole life, death, retirement, health and endowment insurance only account for a total of 2.4 per cent.

Conor M. O’Neill, CFO, Prudential Vietnam

To take advantage of this trend, Prudential Vietnam Assurance Private Ltd. launched a new universal life insurance product on May 12, PRU-Bảo Vệ Tối Đa (PRU-Max Protect), designed to meet customer needs for long-term protection and flexible wealth accumulation options. PRU-Max Protect has a maximum protection cover of 80 times the annualised target premium. This policy ensures your cash value remains stable from the start, with a shorter breakeven period than competitors, guaranteed interest, and potential bonus payouts.

Conor M. O’Neill, CFO of Prudential Vietnam, said, "We are committed to being the most trusted partner and protector for our customers by flexibly meeting their needs at every significant milestone in their lives. We endeavour to be an insurer which demonstrates best practice in designing products and supports the building of confidence of Vietnamese customers in long-term savings, protection, and investments."

Amid broader inflationary pressures across the Asia-Pacific region, medical costs in Vietnam are projected to increase by more than 11 per cent this year, exceeding the global average of 10.4 per cent, highlighting the urgent need for sustainable protection. In response, PRU-Max Protect is innovatively designed for customers to enjoy optimal protection benefits and sustainable financial accumulation.

By participating in PRU-Max Protect, customers can flexibly switch between the basic plan, which balances protection and saving, and the advanced plan, which maximises financial protection, as their needs change, while the main product premium remains the same.

Addressing the customers' expectations for wealth accumulation, the policy account value is boosted with a loyalty bonus, awarded on the 10^th and 15^th anniversary date and every five years thereafter, and a retention bonus, awarded on the 20^th anniversary date and every five years thereafter.

Moreover, PRU-Max Protect offers customers a sustainable financial accumulation with a guaranteed crediting rate throughout the policy period. In all cases, the actual investment rate will not be lower than the minimum guaranteed interest rate published by Prudential, ensuring a competitive market rate.

The universal life fund is managed by Eastspring Investments Vietnam, a fund management company with the largest assets under management in the Vietnamese market, supported by a team of professional and experienced investment experts.

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