The birth of the Technology Life Insurance Joint Stock Company (TCLife) recently licensed by the Ministry of Finance is expected to lead the innovation of the entire industry, as Techcombank has done in the finance - banking sector, with pioneering financial products that change the entire industry such as Zero Fee, Sinh Loi Tu Dong or Wealthtech!
With this strategic move, Techcombank is aiming to comprehensively serve the financial and non-financial needs of customers with just "one touchpoint": from saving, business, investment, housing, consumer shopping, to risk management, long-term asset preservation... At the same time, TCLife's business segment also opens up another stable medium and long-term capital channel, investing back in the economy.
Meeting diverse needs based on a deep understanding of Vietnamese people's "insight"
Currently, most of the insurance products available on the market are applied from successful models in the world of foreign companies. These models are designed based on the culture, financial habits and economic conditions of developed countries - where ownership of insurance products has become familiar to the people. Therefore, although insurance packages are very modern, they still do not meet some requirements of Vietnamese people, such as products for multi-generational families...
Especially as the economy is growing, causing per capita income to increase, more and more people are interested in investment and financial management - which is the understanding and strength of large banks such as Techcombank. According to Statista's forecast, the middle-class population in Vietnam will reach 50 million people by 2030. This class really needs life insurance solutions combined with investment to protect assets and make long-term financial plans, high-end, comprehensive and personalized health insurance services that are available right in the country, along with voluntary pension insurance products.
At the same time, along with the achievements of the digital transformation process, those who belong to the generation of technology "lovers" and favor convenience will aim to see banks as a "one-stop shop" for all financial needs, from payment, loans, investment to insurance.
Accordingly, Techcombank aims to take advantage of the advantage of customer database and apply AI technology to research and design a more outstanding model that can "tailor" insurance products based on the actual needs, lifestyle psychology of Vietnamese people while also being suitable for the structure, population development trends and legal environment of Vietnam.
A representative of Techcombank said: with the motto "Customer is the focus", TCLife focuses on developing simple, easy-to-reach protection solutions, while integrating investment and health care factors to comprehensively meet and outperform the increasingly diverse needs of customers.
Another stable medium and long-term capital channel for the economy
With the characteristics of a contract lasting from 5-20 years, the birth of TCLife not only exploits a potential business segment, bringing benefits to investors and shareholders of the bank but also opens up an additional stable medium and long-term capital channel, returning to the economy in the new period.
According to the Economic Development and Cooperation Organization (OECD), in 2024, the global life insurance industry will manage more than 30 trillion USD in assets, with 60-70% invested in government and corporate bonds, providing financial support for infrastructure and sustainable development projects in countries.
In Vietnam, the Insurance Association (IAV) estimates that in the first 6 months of 2025, total insurance fee revenue will reach 67,242 billion VND, of which new exploitation fees will reach 11,728 billion VND. Total assets of the whole industry reached VND 910,829 billion, up 10.74%, with VND 787,000 billion reinvested in the economy, up 10.25% over the same period.
This capital is mainly allocated to government bonds, corporate bonds, and key infrastructure projects such as highways, renewable energy, and commercial real estate, contributing to reducing pressure on the state budget in financing large projects.
In addition, products such as health insurance and retirement insurance help reduce the burden of social security, allowing people financial autonomy against risks such as illness or old age. In 2024, the payment of life insurance benefits will reach VND 71,400 billion, an increase of 25% compared to 2023, proving the important role of the industry in supporting families to overcome difficult stages in life.
According to experts, there is still a lot of room in the life insurance segment. In a report assessing the prospects of the Vietnamese life insurance market by Global Data (a British data analysis company), the total revenue from the Vietnamese life insurance market is forecast to reach 6 billion USD in 2025. This unit also forecasts the compound annual growth rate (CAGR) of the life insurance industry to reach 3.2% in the 2025-2029 period, with a market size of about VND165.4 trillion (equivalent to USD6.4 billion) in 2029.
However, the penetration rate of the life insurance industry in Vietnam is only 14% of the population, lower than the rate of 38% in the Philippines or 80% in Singapore, showing that the market still has a lot of potential and challenges.
TCLife, inheriting technological advantages, a strong financial ecosystem and a deep understanding of Techcombank's Vietnamese market, is expected to bring a superior, modern product model that is complete, accurate and meets needs, while improving customer experience and promoting innovation in the insurance sector, laying the foundation for a new era of life insurance in Vietnam - where customers are truly the center of all values.
This strategic step will also strengthen Techcombank's role as a financial "one-stop shop" while fulfilling its commitment to the Government to promote the sustainable development of the Vietnamese economy in the era of national growth.
