With online scams and cyberattacks growing more sophisticated, “cybersecurity insurance” has recently emerged in the Vietnamese market. While many banks and securities firms now offer these products, there is still hesitation in some sectors.
An investor mentioned using a basic cybersecurity insurance plan costing 5,000 VND per month. Customer service explained that the insurance is voluntary, with options to upgrade. Securities V announced this rollout in partnership with VietinBank Insurance (VBI), offering three packages: 60,000 VND, 120,000 VND, and 240,000 VND annually, covering up to 50 million VND per incident.
The increase in digital transactions has led to more sophisticated scams, often difficult for customers to detect. To address this, some companies offer these packages to help clients feel more secure. Interestingly, the insurance also covers health incidents, including accidents resulting in death or permanent disability, as well as treatment and inpatient care costs.
Concerns About Compensation Liability
Despite the low cost, cybersecurity insurance is new in Vietnam, and some firms hesitate to offer it. Executives express concerns about legal clarity, especially around intermediary liability. One executive remarked on the potential risks, drawing on lessons from bancassurance.
At KIS Vietnam Securities, the director said they are not entering this market due to the risk of being seen as “trying to sell additional products”, which could lead to disputes. Similarly, DSC Securities’ HCMC branch director emphasized that the pricing of any insurance product must be carefully assessed for viability.
Banks and Payment Intermediaries Respond
To address fraud concerns, several banks and payment intermediaries, like Viettel Money, now offer cybersecurity insurance. Viettel Money’s package covers unauthorized withdrawals with coverage up to 1,400 times the premium, protecting accounts from phishing, malware, or unauthorized software risks. Coverage extends to accidental injuries and medical expenses, with a monthly premium of only 3,000 VND. VietinBank and Agribank have also launched similar products with modest premiums and substantial coverage.
Need for Clear Contracts
Cybersecurity experts stress that insurance contracts should clearly define all terms to prevent disputes. Pop-ups alone may not sufficiently inform users of policy details. The deputy general director at a big Securities Company in Vietnam noted that firms must invest in robust security systems to safeguard both their assets and their clients’ funds, particularly with the risks of account takeovers.
Insurance Alone Won’t Mitigate Risks
A cybersecurity specialist (who wished to remain anonymous) cautioned that these insurance products don’t necessarily make accounts safer. Financial institutions still need to invest heavily in cybersecurity infrastructure, and customers need to remain vigilant.
Overall, the current insurance market faces a “chicken-and-egg scenario”: low limits on coverage dampen demand, while low participation discourages insurers from offering higher payouts…