The Vietnamese insurance industry is actively leveraging global technological trends to meet development requirements in the new era, where AI, data and resilient transformation have become decisive factors for competitive edge and sustainable development. According to the Insurance Association of Vietnam (IAV), market growth is no longer measured solely by revenue size or the number of contracts, but increasingly depends on service quality, risk management capabilities, innovation and the ability to build lasting trust with customers. At the 2026 Vietnam Insurance Summit, experts emphasized that data and AI are becoming core competencies in the modern insurance industry, with customers expecting insurers to support them in predicting and mitigating risks early. The summit highlighted that successful transformation is not driven by technology alone, but requires fundamental shifts in business models, organisational capabilities and corporate culture to build a more resilient, customer-centric and future-ready insurance industry.
According to a McKinsey report, artificial intelligence is set to fundamentally reshape the economics of the global insurance industry. The report indicates that carriers, brokers and technology providers that move early into AI adoption will gain significant competitive advantages as AI transforms underwriting, distribution, productivity and innovation pace. Insurers will increasingly face a choice between competing through scale and cost efficiency or through deep specialisation, while building the technology, data and operating capabilities required to respond at 'technology speed'. The latest developments show that AI-linked stocks are experiencing unprecedented volatility as investor concerns grow, highlighting the market's heightened attention to AI adoption across industries. As reported by McKinsey, AI could help insurers expand into emerging risk pools and improve underwriting and claims accuracy, with new areas such as AI liability, nonphysical business interruption and AI-augmented workforce transitions potentially expanding the insurance market significantly. However, AI initiatives struggle when insurers optimize purely for speed without recognizing the emotional nature of insurance moments, where claims tied to illness, accidents, or bereavement demand empathy as much as efficiency. Well-designed escalation pathways within a human–AI hybrid workforce are critical for maintaining customer trust.
As reported by McKinsey, AI could help insurers expand into emerging risk pools and improve underwriting and claims accuracy. New areas such as AI liability, nonphysical business interruption and AI-augmented workforce transitions could expand the insurance market significantly. The report suggests that parametric products, embedded micro-coverage and on-demand policies could make previously uneconomic segments more accessible to the industry. AI could also address the sector's longstanding productivity challenge, with the technology potentially shifting the industry from traditional risk transfer towards continuous, data-driven risk management. When used effectively and responsively, AI not only helps insurers improve operational efficiency, but also unlocks the potential for deeper customer understanding, the development of more relevant products and the provision of more proactive and personalised service. Recent research reveals that the value equation is often closer to 10% algorithms, 20% technology and data, and 70% people, process, and behavior change, emphasizing that most value does not come from technology alone but requires comprehensive operational redesign. However, policyholders expect insurers to understand their needs and respond with timely, personalized interactions shaped by life events, medical history, financial context etc., with many benchmarking their experience against digital platforms such as Grab and Amazon.
Ngô Việt Trung, director of the Ministry of Finance's Insurance Supervision and Management Department, told the summit that domestic insurers have actively invested in data, AI and digital platforms to optimise operations, improve customer experience and develop new products and services. The department will continue to support the business community in the process of innovation, while gradually perfecting the legal framework for the research and application of AI and new technologies in insurance operations. Trung emphasized that the application of AI for the insurance sector needs to ensure transparency, accountability in decision-making, protection of personal data, information security and effective risk management mechanisms. The approach focuses on encouraging innovation while managing risks, promoting the use of technology to improve operational efficiency, product development and service quality, while safeguarding policyholders' legitimate rights and interests and ensuring data security, cybersecurity and transparency in AI use. The summit highlighted that the development of AI is not just a matter for individual businesses, but requires close coordination among regulatory agencies, insurance and technology companies, research organisations and partners in the ecosystem.
As reported by McKinsey, AI-driven transformations are already producing 20-40 per cent reductions in customer onboarding costs and 10-20 per cent improvements in insurance agent productivity in some domains. The report indicates that distribution could undergo a major shift as AI assistants increasingly compare coverage, prices and products and potentially influence customers' purchase decisions. The 'front door' to insurance could increasingly become an AI assistant, platform or ecosystem rather than a traditional agent or insurer website, fundamentally changing how customers access and purchase insurance products. Recent industry trends show that companies are using AI for operational efficiencies, with traditional cost levers often generating savings of 5% to 25% within the first 3 to 12 months, creating the runway for deeper AI transformation investments. At the summit, experts discussed how data and AI can be used to enhance resilience, while also examining the shift toward customer-centric, platform-based ecosystems. However, competition is intensifying where mergers and acquisitions, partnerships, and digital-native entrants continue to raise expectations, with insurtechs, MGAs, and embedded insurance platforms often setting new benchmarks for speed and convenience.
According to the McKinsey report, insurers will need to build faster decision-making, stronger data architecture and closer integration between business and technical teams. The analysis reveals that AI leaders have already generated six times greater total shareholder returns than laggards, highlighting the potential financial consequences of moving quickly into AI transformation. Companies that delay AI transformation could see the competitive gap widen, while those able to test, learn and scale faster may build a structural advantage in the evolving insurance landscape. Recent developments demonstrate this trend, with Cognizant launching its first global Codex Hackathon with OpenAI, where ten thousand associates across six Indian cities participated and the company plans to extend participation to over fifty thousand associates soon. At the summit, experts shared that successful transformation requires collaboration of regulatory bodies, insurance companies, technology partners and the entire ecosystem to build trust, enhance service quality and develop a transparent, safe and sustainable insurance market. However, AI transformation highly depends on talents and user adoption, with many CIOs prioritizing the design of a human–AI hybrid workforce where employees are augmented by AI agents and task-specific copilots, requiring workforce planning and upskilling initiatives.
