Universal Life Business Activities at Vietnamese Life Insurance Enterprises

Universal life is a product of Life Insurance. This insurance product accounts for a large proportion of the total sales revenue of insurance businesses today. The article has clarified the theoretical basis of Universal life, regulations on product design, interest rates or responsibilities for establishing a universal fund for insurance enterprises. From the published data of the Insurance Association of Vietnam, we have evaluated the business of Universal life products at life insurance companies. Based on the advantages of the product such as the separate premium structure, customers can pay additional fees for the Investment part and receive accompanying benefits (such as compensation when an insurance event occurs and Investment interest from the universal fund not lower than the commitment recorded in the insurance policy) so soon as The market was negatively impacted by the frauds and errors discovered at the end of 2022, but the Universal life product business remained at the top of the insurer's revenue group. However, it is still affected and reduced sales due to many challenges in this product business such as the influence of declining corporate brand image, undeveloped market economy and unstable world politics. Therefore, in order to regain customer trust, the Government and insurance business management agencies have been involved in revamping business activities to control all activities in accordance with the Law on Insurance Business and ensure the interests of customers.