Life insurer AIA commits to long-term investment in Vietnam: exec

AIA is committed to making long-term investments in Vietnam, said Lee Yuan Siong, executive director and group chief executive and president of the Hong Kong-headquartered life insurer.

Siong made the statement at a Wednesday meeting in Hanoi with Vietnam's Deputy Minister of Finance Le Tan Can while highlighting the Vietnamese insurance market's massive potential given the high demand.

The executive noted the cooperation between AIA and the finance ministry would improve the professionalism of the Vietnamese market and prompt insurers to deliver more suitable products.

This is the key to restoring consumers’ confidence in the market towards sustainable and stable growth, he added.

For his part, Deputy Minister Le Tan Can emphasized the strong growth of the insurance market in Vietnam, with premiums rising 15.18% yearly on average during 2017-2023.

In 2023, the insurance market recorded premiums of VND228,173 billion ($9.18 billion), paid indemnification of VND80,924 billion ($3.25 billion), and invested VND750,495 billion ($30.16 billion) in the economy.

Can also highlighted amendments to the Insurance Business Law, approved by the National Assembly in June 2022, which would facilitate insurers to diversify their products and apply technological advancements to reduce costs.

He noted only about 10% of the Vietnamese population is now covered by life insurance, versus the country’s target of 20-25% for 2030.

Can asked AIA to help the ministry develop the insurance market, boost the management of the market, and provide better protection for investors.

Life insurer AIA (Vietnam), a subsidiary of AIA, recorded post-tax profits of VND283.8 billion ($11.4 million) in the first half of 2024, down 68% year-on-year, according to the firm’s financial statement.

Revenue from insurance activities fell by VND713.3 billion ($28.7 million), or 10.4%, to VND6.859.4 billion ($275.5 million).

According to Deputy Minister of Finance Le Tan Can, AIA Vietnam's revenue in the period is the fifth-biggest among 19 life insurers in Vietnam.