The event marked a step forward in cooperation to build a data-sharing platform for voluntary motor insurance, helping improve risk assessment, pricing and customer service.

In the first nine months of 2026, motor insurance premiums were estimated at VND16,290 billion ($631.3 million), up 9.4% year-on-year, while claims amounted to around VND8,172 billion ($316.7 million), representing a claims ratio of 50.2%.

Voluntary motor insurance premiums reached approximately VND11,883 billion ($460.52 million), up 10.6%, while claims totalled around VND7,315 billion ($283.49 million), equivalent to a claims ratio of 61.6%, excluding outstanding claims reserves. These figures highlight the need to improve underwriting and claims management.

Twenty-nine non-life insurers currently offer voluntary motor insurance. However, policy and claims histories are still largely held separately by individual companies, making it difficult to verify losses, particularly when customers switch insurers. Customers with good insurance records may also not receive full recognition for their history.

In response, at the 22nd Non-Life Insurers' CEOs Conference in 2025, insurers called on the association to promote the development of a shared database, initially focusing on motor insurance. The NCD system is a step towards turning that proposal into reality.

In his opening remarks, Nguyen Xuan Viet, chairman of the Vietnam Insurance Association, said: "Today's event marks a step forward in cooperation between the association, insurers and Fermion Merimen to build a motor insurance data-sharing platform, supporting risk assessment and improving customer service quality."

From market demand to a shared data platform

According to Viet, 10 insurers have expressed readiness to connect to the NCD system. Their early participation reflects demand for cross-checking claims histories, while broader participation would increase the value of the shared database.

Presenting an overview of the program, Ngo Trung Dung, the association's deputy secretary-general, said NCD was designed to collect, standardize and share claims data by vehicle.

Insurers will provide the number of claims, amounts paid and reserves for each policy period. The system will support searches using vehicle registration numbers, chassis numbers or engine numbers, displaying up to the three most recent available policy periods, along with the number of claims and loss ratios.

A representative of Merimen Group expressed appreciation for the trust placed in the company by the Vietnam Insurance Association and insurers during the NCD rollout.

The representative said this trust was rooted in Merimen's commitment to neutrality throughout its operations. As a technology solutions provider that does not directly conduct insurance business, Merimen said it had no conflicts of interest with insurers participating in the system.

With more than 20 years of experience serving the insurance industry in Singapore, Malaysia and other regional markets, Merimen places particular emphasis on data security and ownership.

The group said its data center is located in Vietnam. After 10 years of operating in the Vietnamese market, it has established teams in Hanoi and Ho Chi Minh City ready to support insurers in connecting to and operating the system, as well as addressing any issues that arise.

This also underpins Merimen's commitment to a long-term partnership with the association and insurers to ensure the NCD system operates effectively.

Under the system's data protection principles, insurers will not be able to view other companies' raw data and will only receive aggregated results for risk assessment. The association will have controlled access for monitoring purposes, while the system will apply access controls and maintain audit logs.

Association chairman Nguyen Xuan Viet stressed: "The value of the system depends first and foremost on the completeness and reliability of the information contributed." Therefore, connectivity must go hand in hand with timely updates, error checks and data protection.

Greater transparency in risk assessment, with a focus on customer benefits

NCD will provide an additional basis for checking claims histories when vehicle owners switch insurers. For customers with good records, the information can support consideration of more appropriate premiums, subject to available data and each insurer's regulations.

According to Viet, "NCD provides an additional basis for recognizing good insurance histories, including when customers change insurers, within the scope of available data and applicable policies."

However, the system does not mean that all vehicle owners with no claims will automatically receive lower premiums. Specific preferential policies will remain subject to the conditions and regulations of each insurer.

For insurers, cross-checking data will support underwriting and pricing, help identify inconsistent information and flag cases requiring verification, thereby improving claims management and fraud prevention.

According to Ngo Trung Dung, following the signing ceremony, NCD will continue to be developed and tested before its official launch. The three-year free-of-charge period will begin when the system becomes operational. The association will coordinate the program, Merimen will provide technical support, and insurers will work together to standardize and update data.

In his closing remarks, secretary-general Pham Ngoc Son said: "Today's event may have come to a close, but cooperation on data sharing in Vietnam's insurance market is only just beginning."

He said the effectiveness of NCD would need to be assessed through data quality, its practical use and tangible improvements in insurance operations.