Sprint → Stall → Rebuild (2019-2024)

• Bancassurance whiplash
Hyper-growth without appropriate customer knowledge met consumer pushback; early lapses exposed mis-aligned incentives.

• Boom to Bust
  New business premiums soared 24% in 2019

• Regulators stepped in
Forced tie-ins banned; suitability, disclosures, and cool-off periods sharpened; sales shifted from push to purpose.

  
  

The Reset in Motion (2024–2025)

• Products, redesigned for clarity: 
Complex ILPs pulled back; universal life and term policies re-launched with modular riders. Fewer moving parts → easier for customers to understand, harder to mis-sell.


• Tech at the core of service: 
Digital submissions, voice recorded customer consent became the new normal. Instant feedback loops and increase in free look period.

Distribution & Product Remix

• Bancassurance, right-sized: 
From pressure to partnership - fewer hard sells, need based selling and post-sale servicing.


• Universal Life holds the fort:
UL policies remained dominant, representing a full 57% of all in-force policies


• Protection > promises:
Term life and health/CI riders rise as families buy peace-of-mind cashflows, not just maturity cheques.

Singapore’s Playbook (Early 2000s)

• The Problem: In the late 1990s, Singapore’s insurance market was small, insular, and plagued by poor advice.

• The Reform: Regulators liberalized the sector, tightened advice rules, and raised disclosure standards.

• The Outcome: Trust rebuilt, 8% life insurance penetration and Singapore became Asia’s insurance hub.

Why Are We Optimistic?

• Trust is crawling back: 
After the 2023 lapse spike, persistency is rising and complaints easing - proof that simpler, better service is winning.


• A healthier mix is forming: 
Bancassurance is no longer dominant; agencies rebound with digital tools, while super-apps and KOLs bring new buyers. AI will speed this shift.


• New insurer launch:
Banks aren’t just distributors - Techcombank launching it's own insurer signals strong confidence in Vietnam’s future.

This reset isn’t just cleanup. it’s the start of a new growth cycle. Who else is optimistic about Vietnam’s insurance future?

See post on Linkedin