Insurance market building the next chapter of protection

After a prolonged period of adjustment and restructuring, Vietnam's insurance market is turning a corner.

- By Hanh Tracy Dao Country manager, Igloo Vietnam

As the industry enters a new development cycle, 2026 is shaping up to be more than a growth milestone; it marks a defining moment for insurers to rethink their role, shifting from product-led providers to long-term partners that help build resilience for businesses, individuals, and the wider Vietnamese economy.

In Vietnam's insurance market, large in scale yet characterised by relatively low policy values, the challenge is no longer expansion alone, but how to balance cost efficiency with service quality. This pressure is exposing the limits of manual operations, particularly in underwriting, claims processing, and fraud prevention. As a result, AI is rapidly moving from experimentation to necessity.

AI is set to become core operational infrastructure for insurers. As competition intensifies and margins continue to tighten, the effective use of AI to sharpen pricing accuracy, accelerate claims processing, and strengthen fraud detection will increasingly determine market competitiveness.

At Igloo, AI is not treated as a foundational platform embedded across the entire insurance lifecycle, from product design and underwriting to claims management. Crucially, in a market where consumer trust is still being rebuilt, the responsible, transparent, and regulatory-compliant deployment of AI will be essential. Only then can automation truly serve as a catalyst for both operational efficiency and renewed confidence in the insurance industry.