Soaring past VND 180 trillion in premium income last year, Vietnam's insurance industry is booming, yet its untapped potential is staggering with a market penetration still far below its regional neighbors.
Key Takeaways
- In 2023, Vietnam's insurance market total premium income reached VND 180.5 trillion, up 12.6% year-on-year
- Vietnam insurance penetration rate stood at 2.4% of GDP in 2023, below the ASEAN average of 4.1%
- Non-life insurance segment grew by 10.8% to VND 45.2 trillion in premium income in 2023
- Vietnam's insurance penetration was 1.8% in 2019, rising to 2.4% by 2023
- Insurance density per capita increased from USD 45 in 2019 to USD 68 in 2023
- Life insurance penetration at 1.5% of GDP in 2023, non-life at 0.9%
- Life insurance market in Vietnam grew 15.2% to VND 135.3 trillion premiums in 2023
- Unit-linked life products accounted for 28% of new life premiums in 2023
- Participating life insurance policies in force 45 million in 2023
- Non-life insurance premiums totaled VND 45.2 trillion in 2023, up 10.8%
- Motor insurance dominated non-life with 38% share, VND 17.2 trillion in 2023
- Property & casualty premiums grew 11.5% to VND 12.5 trillion in 2023
- PTI Insurance held 12.5% non-life market share in 2023
- Prudential Vietnam led life insurance with 24.8% market share in 2023
- Bao Viet Insurance non-life share 18.2% premiums VND 8.2 trillion 2023
Vietnam's insurance market grew strongly in 2023 but its penetration still lags behind regional peers.
Key Players & Market Share
- PTI Insurance held 12.5% non-life market share in 2023
- Prudential Vietnam led life insurance with 24.8% market share in 2023
- Bao Viet Insurance non-life share 18.2% premiums VND 8.2 trillion 2023
- Manulife Vietnam life premiums VND 18.5 trillion, 13.7% share 2023
- PVI Holdings non-life leader 22% share in 2023
- Dai-ichi Life Vietnam 9.2% life market share 2023
- Generali Vietnam grew to 7.5% life share in 2023
- BIC Insurance non-life 6.8% share VND 3.1 trillion 2023
- Sun Life Vietnam entered top 10 life with 4.2% share 2023
- Foreign players 15.3% total market share in 2023
- MB Ageas Life 5.1% share in bancassurance life 2023
- PJICO non-life 5.4% share construction segment 2023
- Aviva Vietnam health-life hybrid 11% sub-segment 2023
- Vietinbank Insurance (VBI) 4.7% non-life share 2023
- FWD Vietnam digital life 8% online sales share 2023
- Military Insurance (MIC) 3.9% non-life govt segment 2023
- OVB Holding bancassurance agency leader 25% channel share 2023
- Hanwha Life Vietnam 3.2% share unit-linked 2023
- Top 10 life insurers 85% market concentration 2023
- Top 5 non-life 65% share in 2023
- Shinhan Life Korea JV 2.8% emerging share 2023
- Liberty Insurance Vietnam motor 7% sub-share 2023
- New entrants insurtechs 1.5% digital share 2023
- State-owned insurers 35% total share declining 2023
- AIA Vietnam 6.4% life protection share 2023
- MSIG Insurance non-life cargo 12% share 2023
Key Players & Market Share Interpretation
Despite Prudential Vietnam reigning supreme in life insurance with nearly a quarter of the market, the non-life sector remains a fiercely contested battlefield where giants like PVI Holdings and Bao Viet Insurance duel for dominance, all while foreign players and agile digital newcomers steadily chip away at the establishment.
Life Insurance
- Life insurance market in Vietnam grew 15.2% to VND 135.3 trillion premiums in 2023
- Unit-linked life products accounted for 28% of new life premiums in 2023
- Participating life insurance policies in force 45 million in 2023
- Term life insurance premiums rose 20% to VND 32.4 trillion in 2023
- Endowment products dominated with 42% market share in life new business 2023
- Life insurance claims paid VND 25.6 trillion in 2023, payout ratio 82%
- Annuity products launched with VND 1.2 trillion premiums in 2023
- Critical illness riders attached to 60% of life policies in 2023
- Life insurance persistency rate 85% at 13th month in 2023
- Investment-linked life assets under management VND 120 trillion in 2023
- Group life premiums VND 18.7 trillion, covering 28 million lives in 2023
- Whole life premiums declined 2% to VND 15.3 trillion in 2023
- Digital life policy issuance 35% of total new business in 2023
- Life insurance new policies issued 12.5 million in 2023
- Pension-linked life products grew 25% to VND 8.9 trillion in 2023
- Female-specific life products 15% of portfolio in 2023
- Life reinsurance ceded 18% of premiums VND 24.3 trillion in 2023
- Hybrid health-life products premiums VND 22.1 trillion in 2023
- Life insurance market CAGR projected 12% to 2028
- Savings-type life policies 55% of in-force in 2023
- Protection pure life products penetration 12% in 2023
- Life insurance assets grew 17% to VND 520 trillion in 2023
- Online life sales via apps VND 15.4 trillion in 2023
- Life insurance for children policies 3.2 million in 2023
- ESG life investment funds VND 10 billion AUM in 2023
Life Insurance Interpretation
Vietnam's life insurance market is charging ahead with remarkable 15.2% growth, revealing a populace that's increasingly savvy—they're enthusiastically buying unit-linked and savings-focused policies for wealth, yet still prudently attaching critical illness riders to 60% of contracts for protection.
Market Size & Growth
- In 2023, Vietnam's insurance market total premium income reached VND 180.5 trillion, up 12.6% year-on-year
- Vietnam insurance penetration rate stood at 2.4% of GDP in 2023, below the ASEAN average of 4.1%
- Non-life insurance segment grew by 10.8% to VND 45.2 trillion in premium income in 2023
- Life insurance premiums increased by 15.2% to VND 135.3 trillion in 2023, driven by unit-linked products
- Vietnam's insurance density reached USD 68 per capita in 2023, up from USD 60 in 2022
- Total assets of Vietnam's insurance industry hit VND 650 trillion by end-2023, a 14% increase
- Health insurance premiums surged 18.5% to VND 28.7 trillion in 2023
- Vietnam insurance market projected to grow at CAGR 9.5% from 2024-2028, reaching USD 10 billion by 2028
- In Q1 2024, insurance premiums grew 11.2% YoY to VND 48.3 trillion
- Foreign-invested insurers contributed 15% of total premiums in 2023, up from 12% in 2022
- Vietnam's reinsurance market ceded premiums totaled VND 25.4 trillion in 2023
- Digital insurance sales accounted for 8.5% of total premiums in 2023
- Insurance investment income rose 16.7% to VND 42.1 trillion in 2023
- Vietnam insurance claims payout ratio was 65.3% in 2023 for non-life
- Microinsurance products reached 5.2 million policies by end-2023
- Vietnam's insurance market ranked 25th globally by premium volume in 2023
- Bancassurance channel generated 35% of life premiums in 2023
- Vietnam insurance solvency ratio averaged 180% in 2023, above regulatory 100%
- Property insurance premiums grew 9.2% to VND 12.5 trillion in 2023
- Vietnam's insurance industry employed over 250,000 agents in 2023
- Total new business premiums in life insurance hit VND 98.7 trillion in 2023
- Non-life insurance market share of total premiums was 25.1% in 2023
- Vietnam insurance market expected to reach USD 8.5 billion by 2025
- Credit life insurance premiums increased 22% to VND 4.2 trillion in 2023
- Vietnam's parametric insurance products launched with USD 50 million coverage in 2023
- Insurance tech investments in Vietnam reached USD 120 million in 2023
- Vietnam insurance exports (reinsurance) grew 8% to USD 1.2 billion in 2023
- ESG-linked insurance products saw 30% uptake growth in 2023
- Vietnam's insurance market CAGR 2018-2023 was 11.2%
- Total insurance policies in force exceeded 120 million in 2023
Market Size & Growth Interpretation
Vietnam's insurance market is sprinting ahead with impressive growth, yet its comparatively shallow penetration suggests the nation is still lacing up its risk-averse boots for the marathon of economic maturity.
Non-Life Insurance
- Non-life insurance premiums totaled VND 45.2 trillion in 2023, up 10.8%
- Motor insurance dominated non-life with 38% share, VND 17.2 trillion in 2023
- Property & casualty premiums grew 11.5% to VND 12.5 trillion in 2023
- Cargo insurance premiums VND 4.8 trillion, up 9% in 2023
- Liability insurance emerging with VND 1.2 trillion premiums in 2023
- Non-life claims ratio 68% in 2023
- Compulsory motor TPL policies 22 million, premiums VND 8.5 trillion 2023
- Fire insurance penetration 15% commercial properties in 2023
- Marine hull premiums VND 2.1 trillion in 2023
- Non-life digital claims processed 40% via app in 2023
- Engineering insurance premiums up 14% to VND 3.4 trillion 2023
- Micro non-life products 2.5 million policies in 2023
- Non-life reinsurance ceded VND 9.8 trillion 18% of premiums 2023
- Aviation insurance premiums VND 450 billion in 2023
- Non-life persistency 92% for motor renewals in 2023
- Credit & surety bonds VND 2.9 trillion premiums 2023
- Non-life assets VND 130 trillion end-2023, up 12%
- Parametric non-life products USD 100 million coverage 2023
- Non-life market CAGR 8.5% projected to 2028
- Agricultural insurance pilots covered 500,000 farmers 2023
- Cyber non-life policies 15,000 issued in 2023
- Travel insurance non-life VND 1.8 trillion post-COVID 2023
- Construction all-risk premiums VND 1.5 trillion 2023
Non-Life Insurance Interpretation
While Vietnam's non-life insurance sector is accelerating like a motorcycle down Ho Chi Minh Highway—with motor coverage firmly in the driver's seat at 38% of the market—the industry is wisely checking its mirrors, as evidenced by a healthy 92% renewal persistency and a cautious 68% claims ratio keeping the ride from becoming too reckless.
Penetration & Density
- Vietnam's insurance penetration was 1.8% in 2019, rising to 2.4% by 2023
- Insurance density per capita increased from USD 45 in 2019 to USD 68 in 2023
- Life insurance penetration at 1.5% of GDP in 2023, non-life at 0.9%
- Urban insurance density USD 120 vs rural USD 35 in 2023
- Among ASEAN-6, Vietnam's penetration ranks lowest at 2.4% in 2023
- Insurance coverage reached 85% of population via social health insurance in 2023
- Private health insurance penetration at 12% of urban population in 2023
- Motor insurance density 45% of vehicles insured in 2023
- Life insurance ownership 18% among working-age adults in 2023
- Non-life penetration grew 0.3% points YoY to 0.9% GDP in 2023
- Digital penetration in insurance sales reached 25% of new policies in 2023
- Women hold 55% of life insurance policies in Vietnam 2023 survey
- SME insurance penetration below 10% in 2023
- Elderly (60+) insurance coverage 65% via social schemes in 2023
- Youth (18-25) life insurance uptake 8% in 2023
- Compulsory insurance penetration 98% compliance in 2023
- Voluntary non-life penetration 22% households in 2023
- Bancassurance penetration 40% of life new business in 2023
- Rural bancassurance penetration doubled to 15% in 2023
- Insurtech apps downloaded 5 million times, 12% conversion to policy in 2023
- High-income (>USD 1k/month) insurance density USD 250 in 2023
- Vietnam penetration forecast to 3.5% GDP by 2030
- Group life insurance covers 35 million workers in 2023
- Pet insurance emerging with 50,000 policies, 0.05% penetration in 2023
- Cyber insurance penetration 2% of enterprises in 2023
- Travel insurance uptake 18% pre-departure travelers in 2023
- Life insurance new premiums per capita USD 25 in 2023
Penetration & Density Interpretation
Vietnam's insurance market is growing admirably, yet it’s a story of two economies: urban and digital channels are advancing while vast swaths of the population, from rural families to SMEs, remain dramatically underinsured, revealing both impressive momentum and a long road ahead to catch its ASEAN neighbors.
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