Segmenting Vietnam’s life insurance market is necessary for life insurers looking to strengthen their market position, tailor their products and brand messaging to address segment-specific needs and improve digital experiences.

Vietnam’s life insurance industry is transforming as customer expectations, demographics, and financial priorities evolve. Cimigo identifies six consumer segments with distinct needs, communication preferences, and brand perceptions. To succeed, life insurers must align their marketing and product strategies with these nuances.

This article analyses each segment’s size, touchpoints, marketing strategies, customer experience preferences, and how insurers perform, focusing on brand strengths and weaknesses.

The analysis is based on a Cimigo study of 1,800 consumers across thirteen cities in Vietnam: HCMC, Bien Hoa, Phan Thiet, Can Tho, Rach Gia, Ca Mau, Da Nang, Nha Trang, Buon Me Thuot, Vinh, Ha Noi, Hai Duong and Ha Long.

The sample is representative of the city size and demographics of decision-makers regarding household finance and purchasing a life insurance policy. All participants were female and male, aged 23 to 65, with a monthly household income above VND 9,000,000.

Life insurance consumer segments and their market size

1. Professional Nesters (24%): The biggest segment with a median premium value are high-income earners balancing career growth with family responsibilities. They are middle-class and middle-aged with high incomes and a professional occupation. They balance their financial management between savings and investments.
2. Golden Segment (23%): Retirees and homemakers seeking independence and financial stability. This second largest segment is older people with children over 18. Some are retired and receive family financial support. They have owned a life insurance policy for a long time. Their key motivation is saving and protecting themselves.
3. Successful Traders (15%): Middle-aged entrepreneurs and business owners prioritising savings and legacy planning. They tend to have their own businesses and high incomes. Children are still dependent but approaching 18 years. Family is their priority, especially their children’s education. Life insurance is both a savings and an investment tool.
4. Clerical Nesters (14%): Young families focused on securing their children’s future on a limited budget. Typically, they are a new family unit with a child. They have a low income, meeting just their basic needs. Safety for the family is the most critical trigger for purchasing life insurance.
5. Young Adventurers (13%): Young and ambitious individuals who prioritise personal aspirations and investment opportunities. This is the highest premium-value segment. They are the youngest and have a high income and occupation status. Most are single and still living with their parents. Their financial point of view skews towards risk-takers. Most use life insurance as a regular savings tool.
6. Silver Segment (11%): Lower-income households focused on family protection and education. This segment has a comparatively low income, education and occupation status. Their financial management and awareness are poor. They have purchased a life insurance policy for their family and self-protection.

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Segmenting Vietnam’s life insurance market: Professional Nesters (24%)

Profile:

The biggest segment with a median premium value are high-income earners balancing career growth with family responsibilities. They are middle-class and middle-aged with high incomes and a professional occupation. They balance their financial management between savings and investments.

Touchpoints:

Professional financial advisors and workplace seminars are preferred sources of trusted information.

Respond well to targeted educational content through digital channels.

Marketing strategies:

Offer comprehensive plans with high-value protection, investment components, and education funds for children.

Use professional, family-focused messaging that emphasises stability and long-term growth.

Engage through workplace campaigns and personalised consultations.

Customer experience preferences:

Expect tailored solutions and proactive support from their insurer.

Value seamless integration of policies into their broader financial planning.

Brand performance:

Prudential and Dai-Ichi perform well due to their strong focus on investment-linked products. However, insurers need to enhance advisory services to strengthen their position.

• Prudential: Leads in investment-linked offerings but lags in personalised customer experience.
• Dai-Ichi Life: Recognised for investment returns but lacks a customer-first approach.
• Manulife: Strong reputation for professionalism but needs to enhance customer empathy.
• AIA: Modern brand appeal but struggles to compete with legacy insurers.
• Hanwha Life: Gaining traction with competitive rates but requires more visibility in this segment.

Segmenting Vietnam’s life insurance market: Golden Segment (23%)

Profile:

Retirees and homemakers seeking independence and financial stability. This second largest segment is older people with children over 18. Some are retired and receive family financial support. They have owned a life insurance policy for a long time. Their key motivation is saving and protecting themselves.

Touchpoints:

Word-of-mouth and agent relationships dominate this segment’s decision-making process.

Personal, face-to-face consultations are preferred over digital engagement.

Marketing strategies:

Design high-value protection plans with additional riders for independence and care.

Leverage messaging that emphasises financial independence and enjoying retirement.

Build loyalty through empathetic, personalised communication and after-sales service.

Customer Experience Preferences:

Strong preference for monthly payment schedules for convenience.

Seek insurers who prioritise trust and long-term support.

Brand performance:

Manulife leads in this segment, benefiting from its focus on customer care and flexibility. However, insurers must work on building more significant emotional connections through empathetic storytelling.

• Manulife: Leads in this segment due to its professionalism and flexibility.
• Prudential: Reliable reputation but needs to improve emotional connections through storytelling.
• Bao Viet: Accessible and trusted but perceived as less premium.
• Generali: Effective in building trust but requires greater presence in older demographics.
• Cathay Life: Strong regional connections but limited scalability.

Segmenting Vietnam’s life insurance market: Successful Traders (15%)

Profile:

Middle-aged entrepreneurs and business owners prioritise savings and legacy planning. They tend to have their own businesses and high incomes. Their children are still dependent but approaching 18 years old. Family is their priority, especially their children’s education. Life insurance is both a savings and an investment tool.

Touchpoints:

Strong reliance on agents and community recommendations to inform decisions.

Local events and business networks are effective platforms for engagement.

Marketing strategies:

Position policies as family stability and legacy planning tools, emphasising savings and education benefits.

Collaborate with agents and community influencers to build trust and credibility.

Highlight flexible premium options and long-term stability in messaging.

Customer experience preferences:

Value personalised service and consistent follow-ups from agents.

Expect insurers to provide clear, risk-free solutions aligned with family priorities.

Brand performance:

Manulife leads in this segment due to its emphasis on professionalism and flexibility. However, insurers must enhance their localised marketing efforts to penetrate this segment further.

• Manulife: Excels in flexibility and professionalism, making it a favourite among traders.
• Prudential: Reliable brand but perceived as more rigid regarding policy options.
• AIA: Strong in building trust but requires more tailored products for entrepreneurs.
• Generali: Effective in relationship-building but lacks scale and reach.
• Bao Viet: Affordable but lacks premium products for high-value traders.

Segmenting Vietnam’s life insurance market: Clerical Nesters (14%)

Profile:

Young families focused on securing their children’s future on a limited budget. Typically, they are a new family unit with a child. They have a low income, meeting just their basic needs. Safety for the family is the most critical trigger for purchasing life insurance.

Touchpoints:

Trust traditional media for information, particularly TV advertisements and agent recommendations.

Word-of-mouth from family and community members is a critical influence.

Marketing strategies:

Design affordable policies with low premiums and medium-term coverage (11–15 years).

Bundle offerings for family protection and children’s education to enhance perceived value.

Invest in local outreach, such as workshops and community-based initiatives.

Customer experience preferences:

Simplicity in policy terms and payment flexibility (quarterly or monthly).

Accessibility of agents for advice and problem resolution.

Brand performance:

Prudential and Manulife perform strongly in this segment, leveraging their extensive agent networks. However, the challenge lies in balancing affordability with product benefits.

• Prudential: Reliable brand but perceived as premium-priced for budget-conscious families.
• Manulife: Strong agent network but less visible on traditional channels like TV.
• Bao Viet: Trusted for affordability but seen as less innovative.
• Cathay Life: Performs well in local engagement but lacks competitive differentiation.

Segmenting Vietnam’s life insurance market: Young Adventurers (13%)

Profile:

Young and ambitious individuals who prioritise personal aspirations and investment opportunities. This is the highest premium-value segment. They are the youngest and have a high income and occupation status. Most are single and still living with their parents. Their financial point of view skews towards risk-takers. Most use life insurance as a regular savings tool.

Touchpoints:

Highly digital-savvy, this segment relies on online channels and social media for engagement.

Banking apps and digital introductions from financial institutions are particularly influential.

Marketing strategies:

Highlight short-term investment-linked policies with flexible premiums (500,000–2 million VND).

Use youthful, aspirational messaging centred on achieving dreams like travel, marriage, or career milestones.

Interactive tools like premium calculators and mobile apps are vital for engagement.

Customer experience preferences:

Seamless digital journeys, from policy selection to claims processing.

Transparent, straightforward communication that avoids jargon.

Brand performance:

Insurers with robust digital platforms, such as Prudential, resonate well with this group. However, improvements in personalisation and ease of use are necessary to capture their loyalty fully.

• Prudential: Strong in product innovation but needs to improve digital engagement.
• Manulife: Excels in professionalism and payment flexibility but lacks personalisation for young consumers.
• AIA: Offers a modern brand appeal but could expand its digital tools.
• Dai-Ichi Life: Limited digital presence focused on high-return investments.
• Generali: Strong digital tools but lacks brand recognition in this segment.

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Segmenting Vietnam’s life insurance market: Silver Segment (11%)

Profile:

Lower-income households focused on family protection and education. This segment has a comparatively low income, education and occupation status. Their financial management and awareness are poor. They have purchased a life insurance policy for their family and self-protection.

Touchpoints:

Depend on friends, family recommendations, and agents for policy selection.

Community media, such as newspapers and radio, remain relevant.

Marketing strategies:

Focus on essential, affordable products that protect family income and fund children’s education.

Build trust through educational initiatives that simplify life insurance concepts.

Provide flexible payment options to ease financial strain.

Customer experience preferences:

Straightforward and jargon-free communication is key to engagement.

Seek reassurance from agents during critical decision-making moments.

Brand performance:

Prudential and Manulife perform well, but insurers face challenges building financial literacy and trust within this segment.

• Prudential: Performs strongly in trust-building but less competitive in affordability.
• Manulife: Well-regarded for flexibility but needs better local presence.
• Bao Viet: Affordable and accessible but lacks customer service innovation.
• Dai-Ichi Life: High returns but lacks educational initiatives for this low-literacy group.

Marketing channels and influential touchpoints

Cimigo’s Segmenting Vietnam’s life insurance market report highlights the importance of tailoring communication channels to suit each segment. While online channels dominate for Young Adventurers and Professional Nesters, traditional approaches like TV and agent interactions remain vital for Clerical Nesters, Silver, and Golden segments.

Key insights:

• Agents as gatekeepers: Trusted insurance agents are pivotal in influencing purchase decisions, especially among older demographics.
• Digital channels: Younger consumers expect seamless, tech-driven experiences. Insurers must invest in digital marketing, apps, and online tools to capture this market.
• Word-of-mouth: Personal referrals from family, friends, or agents enhance credibility and trust across all segments.

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Insurance policy design recommendations

The Segmenting Vietnam’s life insurance market report outlines optimal product designs tailored to the specific needs of each segment.

1. Professional Nesters: High-return, family-oriented products.
2. Golden Segment: High-value plans with riders for independence and care.
3. Successful Traders: Policies with flexible premiums and long-term stability.
4. Clerical Nesters: Low-cost policies with quarterly payment options and education funds.
5. Young Adventurers: Investment-linked products with short-term options.
6. Silver Segment: Simple, affordable options focusing on family care.

Key insights on Life Insurers’ brand performance

Each brand brings unique strengths to the life insurance market, catering to different segments based on their needs and priorities. While Prudential and Manulife dominate in reputation and flexibility, brands like Dai-Ichi Life and AIA stand out for their focus on investments and modern appeal. Meanwhile, Bao Viet, Generali, Cathay Life, and Hanwha Life perform well in affordability and trust-building but must innovate and scale to capture a broader market share.

Addressing the areas for improvement—whether through enhanced digital tools, better customer empathy, or expanded offerings will allow insurers to strengthen their market position and foster greater loyalty among their target audience.

Prudential

Prudential is widely recognised for its strong brand reputation and innovative life insurance products, which make it a trusted choice across most consumer segments. The brand performs exceptionally well in investment-linked offerings and family-focused solutions, appealing to Professional Nesters and Successful Traders. However, Prudential faces challenges in delivering personalised customer experiences and needs to enhance its digital engagement, particularly for younger, tech-savvy consumers.

Manulife

Manulife excels in professionalism and offers flexible payment options that resonate with the Golden Segment and Successful Traders. The brand’s focus on long-term stability and family-oriented solutions makes it a strong performer across various segments. However, Manulife’s customer service approach is often seen as impersonal. To strengthen its appeal, the brand needs to enhance empathy in customer interactions and improve emotional connections through storytelling.

Dai-Ichi Life

Dai-Ichi Life is well-regarded for offering high investment returns, which attract Professional Nesters and Successful Traders seeking wealth-building opportunities. Its competitive focus on financial growth makes it a strong choice for high-income and financially savvy customers. However, Dai-Ichi struggles with proactive customer service and lacks educational initiatives to engage low-literacy segments like the Silver segment. Addressing these gaps would make it a more holistic player.

AIA

AIA’s modern brand image and innovative marketing strategies position it as a strong contender for younger demographics like Young Adventurers and Professional Nesters. Its digital engagement initiatives and fresh appeal differentiate it from legacy insurers. However, AIA must broaden its portfolio to cater to older demographics, particularly the Golden Segment, and improve its presence in the mid-market categories dominated by competitors.

Bao Viet

Bao Viet stands out for its affordability and accessibility, making it a popular choice for budget-conscious segments such as Clerical Nesters and the Silver Segment. Its strong regional presence and reputation for value make it a trusted name. However, the brand struggles with innovation and premium product offerings, which limits its appeal to higher-income groups like Successful Traders and Professional Nesters.

Generali

Generali performs strongly in relationship-building, with a customer-focused approach that resonates with the Golden Segment and Successful Traders. The brand’s emphasis on trust and personalised service has won over customers in niche markets. However, Generali’s limited scale and lower brand recognition restrict its competitiveness against larger insurers. Expanding its reach and visibility is essential for growth.

Cathay Life

Cathay Life benefits from strong regional connections and local engagement strategies, making it a reliable option for segments like the Clerical Nesters and the Silver Segment. The brand’s focus on community outreach has strengthened its position in traditional markets. However, Cathay Life struggles to scale its operations and lacks differentiation in its offerings, which affects its competitiveness in the broader insurance market.

Hanwha Life

Hanwha Life has made significant strides with competitive rates and is gaining traction among emerging segments like the Silver Segment and the Clerical Nesters. Its efforts to offer affordable products and flexible payment options are appreciated. However, Hanwha Life needs to improve its visibility and expand its portfolio to attract higher-income groups like Professional Nesters and Successful Traders.

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Conclusion: Winning through segmentation

Cimigo underscores the importance of a segmented approach to life insurance marketing. Understanding each group’s distinct needs, touchpoints, and customer experience preferences enables insurers to craft targeted strategies that build trust and loyalty.

For life insurers looking to strengthen their market position, tailoring products and brand messaging to address segment-specific needs and improving digital experiences will be critical.

As Vietnam’s life insurance market evolves, insurers must invest in digital transformation, enhance agent training, and create tailored products that resonate with each segment. Brands prioritising customer empathy and responsiveness will stand out in an increasingly competitive landscape.

Segmenting Vietnam’s life insurance market report is available for purchase and can be tailored to your specific needs. Priced at VND 88,000,000. If you would like further details, email us at ask@cimigo.com.

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