Touting it as a win-win deal for everyone, banks and insurance companies in Viet Nam are promoting the “bancassurance” model to exploit a market with huge untapped potential.

The number of insurance companies has doubled compared to two years ago, with the size of the insurance market increasing by 2.3 times in the last five years.

Through merger & acquisitions (M&A), the world’s leading insurance conglomerates have been buying Vietnamese companies, which has helped the former hasten their entry into the Vietnamese market.

The Foreign Investment Agency (FIA) has noted the growing tendency of Vietnamese businesses making outward investment when the domestic market has become narrower for them.

More foreign insurers have come to Vietnam in recent years. Joining forces with domestic partners in doing business is the way many of them have chosen to penetrate the local market.