Modernizing Duty of Disclosure in Insurance Law in Vietnam’s Transitioning Economy: The Need for a Policyholder-Centric Approach

Abstract This article examines the need for a policyholder-centric approach in modernizing Vietnam’s insurance law, focusing on the shift from freedom of contract to a pro-consumer framework, the strengthening of policyholder protections, and lessons from international legal reforms. As Vietnam’s market-based economy expanded in the 2000s, rising consumer awareness and widespread use of standard form contracts highlighted information asymmetries, leading to disputes and unfair claim denials. While the Law on Insurance Business as amended in 2022 incorporates the principle of utmost good faith, it retains outdated provisions that limit consumer protection. Drawing on global trends such as inquiry-based disclosure and proportional remedies, this article identifies key gaps and advocates reforms to enhance transparency, fairness, and trust in Vietnam’s insurance market.