Transparency and protection as prerequisites for investment-linked insurance to be effective

Transparency and protection: prerequisites for investment-linked insurance to be effective. Investment-linked insurance is increasingly seen as a tool that combines protection and asset accumulation. However, experts say that for this product to maximize its effectiveness, it is essential to understand its nature correctly, control the risk of mis-selling, and place protection as the foundation in long-term financial planning. IDENTIFY MISSELLING RISKS IN INVESTMENT-LINKED INSURANCE According to Ngo Trung Dung, Deputy General Secretary of the Vietnam Insurance Association (IAV), misperceptions between investment-linked insurance and pure investment products arise from three main causes. First, this is a hybrid product that includes protection against risk and investment through funds, which can lead participants to confusion. Second, advisory activity in some periods is not thorough, tending to emphasize investment profits without clearly explaining the protection element. Third, the general investor mindset often equates investment with profit, while in reality unit-linked funds do not guarantee returns and can fluctuate with the market. To mitigate mis-selling, Dung argues for three principles: “fit first, sell later”; transparent information about fees and investment mechanisms; and stronger supervision of the advisory process through standards and technology, such as call-recording. From the fund-management perspective, Duong Kim Anh, Investment Director at Vietcombank Fund Management (VCBF), notes that life insurance is long-term in nature and not suitable for short-term goals. Therefore, an investment product when combined with insurance must align holding periods and risk levels. Kim Anh analyzes that fund selection should rest on two core principles. First, understand your risk tolerance based on age, income, and financial goals. Investors can choose equity funds if they are willing to take higher risk to pursue growth, or bond funds if they prefer safety. Second, select a fund manager and an insurer with compatible investment philosophies. “The common approach is long-term investing and diversification. Allocating across multiple assets helps reduce risk when markets fluctuate. The portfolio may not deliver explosive short-term gains, but it offers stability and sustainability in the medium to long term,” Kim Anh noted. PROTECTION AS THE FOUNDATION TO REALIZE LONG-TERM GOALS Regarding the role of protection in personal financial planning, especially with investment-linked life insurance, Ngo Trung Dung believes this factor should be placed at the foundation for the long term. Each person should prioritize preventing risks such as death, disability, accidents, or income loss, thereby creating a financial safety cushion for themselves and their families. Based on this, new wealth-building objectives are rolled out. In the structure of life insurance, protection and investment are often combined, with protection playing a core role and investment serving as a supplement to accumulate assets over the long term. Investment-linked life insurance products are designed to meet these two needs simultaneously. However, experts argue that prioritizing protection first is the basis for building and maintaining future financial goals, thereby enhancing investment effectiveness. STRENGTHENING THE SYNERGY BETWEEN INSURANCE COMPANIES AND LEADING FUND MANAGERS Against this backdrop, on 10 April 2026, FWD Vietnam launched the unit-linked life product “FWD Đầu tư đón đầu.” It was developed under the regulations of the Insurance Business Law (amended), aiming to combine two main functions: protection and wealth accumulation through investment via unit-linked funds. The product is built on studies of customer needs and life-insurance market trends. Besides protection against financial risks, the product allows participants to access investment choices through seven unit-linked funds managed by Vietcombank Asset Management (VCBF) and SSI Asset Management (SSIAM). Notably, the “Vươn Mình” Fund focuses on key sectors of the economy, combining personal financial goals with long-term growth trends. Additionally, the product optimizes benefits for customers through periodic bonuses from the contract year 3, creating motivation to sustain long-term financial plans. The ability to adjust protection to different life stages is another major plus, helping the product adapt to changing participant needs. Under the enterprise perspective, on the launch of the product, Phuong Tien Minh, CEO of FWD Vietnam, emphasized that when participating in life insurance, the foundational element is protection, and investment only makes sense when the financial plan rests on a solid base. He stated: “2026 marks a milestone of 10 years of FWD in Vietnam. The launch of ‘FWD Đầu tư đón đầu’ demonstrates our consistent strategy to diversify product offerings and provide solutions better matched to customers’ needs, targets, and risk appetite. Financial protection remains the core foundation of life insurance, and this product adds a combination of protection and investment to empower customers in long-term financial planning.” Alongside the new product, FWD Vietnam also upgrades selling tools and processes to help financial advisers assess clients’ needs accurately and tailor protection levels and risk appetite, based on clear criteria and guidelines. The company also enhances its customer engagement procedures, from initial contact to ongoing support after joining, providing useful information to help customers monitor policy accounts and make timely decisions at each life stage. KIND OF THE MARKET—FOCUS ON FUTURE GROWTH In addition to presenting the product, FWD Vietnam announced that it aims to reach revenue targets for life-insurance premiums of around 150 quadrillion VND. Note: The text above includes the main elements of the article focused on mis-selling risks, the role of protection, product launch, and strategic emphasis by FWD Vietnam. Related items and additional headlines shown in the original page are not included here as part of the primary article content.