Insurance premiums decline for first time in years

By Quynh Trang   October 2, 2023 | 12:16 am PT
Insurance premium incomes fell by 7% year-on-year to VND165.6 trillion ($6.81 billion) in the first nine months of this year, the first decline in several years.

The life insurance segment, which accounted for 70% of total premiums, bore the brunt of the drop.

Some insurance companies reported a fall of 30-40% in post-tax profits for the year’s first half.

The industry recently faced its biggest ever crisis after customers claimed to be defrauded by banks who sold life insurance packages purporting them to be deposits.

The Ministry of Finance currently investigating life insurance companies’ partnership with banks, known as bancassurance.

Some insurers have been making changes in their policies to ensure customers are aware of what they buy.

They include a new "welcome call" to first-time customers to ensure they are aware of the key aspects of the contract.

The ministry also proposes fines of up to VND100 million for insurance consultants who fail to explain to customers their rights or coerce people into paying premiums.

go to top