AI-first and the turning point in reshaping Vietnam's insurance industry

Artificial intelligence, big data, and rapid shifts in customer behavior are driving the insurance industry into a transformative era, directly impacting business models, risk governance, and customer experience. At InsurTech 2026, held on March 27 in Ho Chi Minh City under the theme "Redefining the insurance industry in the AI-First era," leaders and experts from insurance, technology, and finance sectors both domestically and internationally discussed the sector's future. InsurTech — an inevitable trend led by AI and data. During the event, Yifan Liu, Senior Strategy Director at ZhongAn Insurance, one of the world’s first and largest fully digital insurers, argued that the insurance sector stands at a major turning point. WEF reports show the world faces increasing risks—from geopolitical instability and technology risk to climate change—emphasizing the role of insurance in protecting people and businesses and forcing the industry to move from reactive to predictive risk management, a process in which AI plays a central role. Yifan Liu noted that ZhongAn’s experience demonstrates that InsurTech is no longer experimental. Since its founding in 2013, the company has built a successful digital-insurance model with 99% of underwriting processed automatically and more than half of claims resolved entirely by AI within minutes. AI also participates in all marketing activities and much of the programming work. Today, ZhongAn’s AI handles about 100,000 customer conversations daily to classify feedback, enabling immediate product and service improvements. The technology also enables the company to enter entirely new markets such as pet insurance, electric-vehicle insurance, and highly personalized products. Significantly, ZhongAn has maintained underwriting profitability for five consecutive years, signaling a positive outlook for digital-insurance models in China and globally. According to Yifan Liu, Vietnam’s context shares many similarities with China: a large population but low insurance penetration, only one-fifth to one-tenth of developed markets. He believes that when per-capita income surpasses thresholds such as $5,000 and $10,000, demand for health and asset protection will be strongly driven. With current growth, Vietnam is approaching the insurance market’s tipping point. "The adoption of AI and big data still faces challenges, but it is the inevitable path to expand insurance coverage and improve customer experience. The convergence of economic growth and technology will create a favorable nexus for Vietnam’s insurance industry in the near future," he emphasized. Ecosystem: Techcombank–led transformation of Vietnam’s insurance sector. In Vietnam, Techcom Life and Techcom Insurance, two companies within the Techcombank ecosystem, are at the forefront of reshaping the industry by combining technology, data, and enhanced customer experience. With more than 30 years in insurance, Mr. Chung Ba Phuong, Chairman of Techcom Life, argues that the best insurance product is the one customers never have to use, i.e., not only focusing on payouts but also helping customers reduce risk. With AI and big data, companies can forecast health or asset risks early, provide alerts and preventive solutions, helping customers protect themselves from the outset. From a market perspective, Mukesh Pilania, CEO of Techcom Life, says trust is the biggest barrier. "Insurance is often associated with complexity and a lack of transparency. We expect to restore trust by using AI and data to summarize lengthy contracts into understandable terms, clarify benefits and terms, and personalize products for each customer profile," he said. Techcom Life and Techcom Insurance differ in being built as AI-native insurers, not bound by old models, where technology drives decisions from the outset rather than merely supporting operations. Thus, the entire process—from advisory and policy issuance to claims—prioritizes AI before human intervention. The technology also continuously analyzes and updates each customer’s profile, enabling precise, timely, and nuanced personalized support and services. A data-driven approach not only improves underwriting quality but also simplifies processes and shortens processing times. It also enables previously declined groups, such as people with preexisting conditions, to access products designed for them. Meanwhile, Pranav Seth, Chairman of Techcom Insurance, emphasizes the goal of building a closed ecosystem where insurance is not just a financial product but part of a holistic health-care journey. A priority is to eliminate post-sale care interruptions through digital platforms, ensuring customers remain connected and supported, delivering a smoother, more transparent, and convenient insurance experience. Experts say the ecosystem advantage, big data platforms, and the bank’s next-generation core banking system, together with Techcom Life and Techcom Insurance, are creating conditions for new insurance models to reach customers more comprehensively and become part of a broader service ecosystem where customers actively manage risk and protect health and finances. Thus, the convergence of AI, data, and the financial–insurance ecosystem opens a new development phase for Vietnam’s insurance industry—more transparent, proactive, and customer-centric. However, Chung Ba Phuong notes that no single corporate ecosystem can transform the entire sector alone. He stresses the importance of collaboration between businesses and regulators, especially in building a shared data repository. The establishment of a National Data Center is viewed as a foundational step, providing clean, structured data to improve AI models and paving the way for a transparent, efficient, and sustainable insurance industry. Although newly formed, Techcom Life and Techcom Insurance have already recorded notable results. Techcom Life ranks in the top 5 markets for new revenue in the first two months of 2026, while Techcom Insurance served more than 650,000 customers in 2025 through a network of 280 branches and a workforce of 3,500 sales staff. Looking toward reshaping Vietnam’s insurance industry, these units focus on applying technology and data to build modern insurance models that empower individuals and organizations to manage future protection. Kim Ngân Financial Security