According to new data from YouGov, COVID-19 has led more Vietnamese to consider taking out private insurance.
The social, economic, and health impacts of the pandemic are creating a rising demand for medical, life, and home insurance policies as more people look to protect themselves and their families from the current challenges to their lives and livelihoods.
Over a quarter of Vietnamese consumers have purchased more insurance products, with 26% reporting an increase in purchasing frequency during the fourth wave compared to before the latest outbreak struck. This trend opens up new opportunities for insurance providers in Vietnam. However, tapping into this potential growth market requires companies to invest in market research and brand building.
Some insurance companies are in a strong position to benefit from this new demand. The YouGov Banking & Insurance rankings, published last month, found that BaoViet Life is the strongest insurance brand for Vietnamese consumers. Based on over 45,000 interviews, the rankings reveal what Vietnamese consumers think about insurance companies based on an average of six unique criteria. Each insurer is rated on its customer satisfaction, corporate reputation, value-for-money, quality, overall impression, and whether or not people would recommend it to others.
BaoViet Life topped the table with an aggregate score of 7.0. Canadian financial services provider Manulife (6.7) and US-owned Prudential (6.3) finished second and third. Meanwhile, fourth-placed AIA (5.2) and fifth-placed Dai-ichi Life (4.3) also recorded strong showings.
YouGov also measures changing trends in consumer sentiment, tracking which insurance providers have improved their brand health over time. On this score, the three ‘biggest improvers’ are Dai-ichi Life (+ 1.4), Prudential (+ 1.2), and Manulife (+ 0.9).
One of the most important indicators of future brand growth is ‘Recommend’, which measures the likelihood that customers would promote an insurer to their friends and families. On this metric, Manulife tops the table with a score of 71.5. However, despite taking the top spot, Manulife has seen the slowest growth with a rise of just 0.9 points. The accolade of most-improved goes to British-owned Aon, whose ‘Recommend’ score rose 7.5 points between July 2020 and July 2021. That far outstripped the second-most-improved insurer, Chubb Life, whose score rose 4.3 points over the same period.
“Private insurance has a lot of room to grow, with penetration rates in the Vietnamese market lower than other countries. However, the COVID-19 pandemic is making people reassess the importance of insurance products in challenging times.” Thue Quist Thomasen, CEO of YouGov Vietnam, said.
“This is creating a potential new growth segment for insurance providers. But, as our data shows, some brands are better positioned than others in the minds of Vietnamese consumers. This highlights the importance of investing in market research and brand building to offer products and services that customers trust, value, and recommend.” Thue Quist Thomasen added.
You can download the full report here: https://www.yougov.vn/library/finance-rankings-2021
YouGov data on the changes in purchasing frequency for insurance products during the pandemic compared to before the pandemic found that 26% reported an increase in purchasing , 64% reported no change in purchasing, and 10% reported a fall in purchasing. The sample size was 939 and the interviews took place between August 23 and August 28, 2021.
The YouGov Banking & Insurance rankings were published on 31 August 2021. Data collection took place between July 2019 and July 2021.