Insurers aim at low-income customers

Life insurance companies in the country will launch many micro insurance products this year to offer more choices for low-income customers, said the Vietnam Insurance Association.

Vietnam is a potential market for micro insurance with 3.2 to 3.5 million needy families, or 16%-17% of the population, said Viet Hai, head of the life insurance department under the association.

Like other life insurance products, enterprises will have to obtain approval from the Finance Ministry before launching micro insurance products to the market. “The ministry will also monitor expansion and effects of the new products,” Hai said.

However, insurers are expected to face challenges in premium collection and contract management. The problems will hinder the basic target of the program that is providing insurance services for the poor, Hai explained.

Manulife Vietnam is the only insurer to have won a license for micro insurance service in the country with a product with monthly premiums of VND30,000 and maximum coverage of VND20 million. The enterprise has reached 14,500 customers after expanding a pilot program in Haiphong City and in Tien Giang Province.

Tags: Vietnam insurance