1
PROSPECTS AND SOLUTIONS FOR BUILDING
SUSTAINABLE BANCASSURANCE IN VIETNAM
Nguyen Van Quang*, Nguyen Thi Kim Thoa†
Email: ntkthoa@uneti.edu.vn
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Abstract: Bancassurance is a relatively young market in Vietnam, yet its contribution
to the total revenue of the insurance sector has witnessed rapid growth and is expected
to continue expanding in the future. This paper provides a theoretical foundation on
bancassurance, analyzes its development prospects, and examines the current state of
bancassurance operations in Vietnam. Additionally, it highlights certain limitations in the
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solutions for building a sustainable bancassurance model in the country.
Keywords: bancassurance; insurance; bancassurance prospects; bancassurance development.
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I. Introduction
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from rapid but unsustainable growth and
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into the growth potential and current
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solutions to foster more sustainable and
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II. Theoretical Basis
2.1. The Concept of Bancassurance
Bancassurance is a concept that
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2
International Association of Insurance
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distributing insurance products to
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with insurance companies to distribute
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which expands market reach and creates
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Bancassurance is a strategic alliance between
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Bancassurance includes two main
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compensation at the end of the contract
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Bancassurance enables insurance
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2.2. Bancassurance Models
Worldwide
The bancassurance models
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(the model of distributing insurance products
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with regulations that protect stakeholder
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Success in bancassurance relies on
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2.4. Market Prospects of
Bancassurance
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Figure 2.1. Bancassurance Market Size, 2022 to 2030 (USD Billion)
Source: www.vantagemarketresearch.com
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reach and raises awareness of insurance
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factors in the economic and social
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network; the expansion of the banking
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facilitates the distribution of insurance
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of insurance distribution and management
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between banks and insurance companies;
the rapid growth of the middle class and
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for insurance and modern banking
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partnerships between banks and insurance
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III. Research Methodology
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factors of bancassurance from reliable
sources to establish a theoretical foundation
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collects and compares data on the current
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solutions for building a sustainable
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5
IV. Results and Discussion
4.1. The Current State of
Bancassurance Operations in Vietnam
4.1.1. Legal Framework and
Regulations Related to Bancassurance in
Vietnam
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numerous legal documents related to the
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the practical operating conditions of
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the Law on Credit Institutions of 2024;
the Law on Insurance Business of 2022;
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Law on Insurance Business; and Circular
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established an important legal framework
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the establishment of sustainable
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4.1.2. The Current State of
Bancassurance Operations in Vietnam
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non-life insurance companies (including
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the Vietnamese life insurance market in
general and the bancassurance segment in
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Vietnamese insurance market has witnessed
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their distribution channels through
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bancassurance as a percentage of
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