📋 Tender Overview
Although considered an effective risk sharing tool, insurance has not yet become a fulcrum for most households after natural disasters. The context of consecutive storms and floods shows the urgent need to increase insurance coverage and need more shields in the Tam Nong area most affected by extreme weather risks. Agribank Insurance officers quickly went to the scene to conduct damage assessment when storms and floods had just receded. There were still protection gaps and coverage was not high. The floods at the end of 2024-2025 continued to cause heavy damage to people and the economy. According to the National Steering Committee for Natural Disaster Prevention, in the first 10 months of 2025, natural disasters left 525 people dead or missing; More than 26,000 houses collapsed or damaged; Nearly 90,000 hectares of crops and 334,000 hectares of rice were flooded, causing a loss of more than 78,000 billion VND. At the end of 2025 alone, floods in the South Central region will cause more than VND 13,000 billion in damage, with more than 200,000 houses deeply flooded. This reality shows the high level of vulnerability of the community and requires an enhanced role of insurance. Although considered a financial shield, insurance has not been as effective as expected. The participation rate in life and non-life insurance is only equivalent to about 2% of GDP, lower than the regional and world average. Life insurance alone covers about 11-11.7% of the population, much lower than the Philippines, Malaysia or Singapore. This leaves most households lacking financial support after natural disasters, mainly relying on savings and the State budget. In the non-life segment, property, fire and engineering insurance revenue reached about 14,296 billion VND, but the number of houses and assets insured is still too small compared to the scale of damage. For vehicles, although civil liability insurance is mandatory, many car owners still do not pay attention to physical insurance - a package that can share risks when the vehicle is damaged by flooding. Notably, the agricultural sector - which is directly and most severely affected - has a very low insurance participation rate. After three years of implementing agricultural insurance support, the whole country has only about 16,700 participating households, too small compared to more than 9 million agricultural production households, creating a large gap in security and recovery after natural disasters. Agribank Insurance officers carry out damage assessment work when storms and floods have just receded. Synchronous action is needed so that insurance is truly a financial shield. In the context of consecutive storms and floods, when there is a lack of insurance, the financial burden is put on many sides: the State budget spends tens of thousands of billions of VND each year, banks face the risk of increased bad debt, social organizations have to mobilize emergency relief, and people suffer direct damage and easily fall into poverty after natural disasters. According to Mr. Do Minh Hoang, Member of the Board of Directors of Agribank Insurance (ABIC), if the insurance system is expanded and operated effectively, much of this burden can be shared. Agricultural insurance helps protect crops and livestock; Property insurance protects homes and warehouses; Personal insurance provides support when injuries occur due to natural disasters, thereby shortening recovery time and reducing pressure on the budget, banks and the community. For insurance to become a financial shield, the top priority is to perfect the legal corridor, transfer pilot programs to widespread implementation, and ensure transparency so that people understand their rights and obligations. Along with that, it is necessary to increase insurance premium support for rural areas, like the Japanese, Korean or American models - where the State sponsors 20-50% of fees to encourage farmers to participate. An important direction is to integrate insurance into the agricultural credit ecosystem, linking asset protection with loan capital to reduce risks and limit bad debt. At the same time, developing low-cost micro-insurance for farmers, poor households, and remote areas will help expand coverage. Strong and continuous communication is the key. Insurance must become an essential need and be disseminated to communes, villages, and cooperatives, ABIC representative emphasized. Anh Minh See moreSee moreSee more
