The life insurance coverage sector in Vietnam is predicted to contract by 1.3% to VND146.1trn ($6bn) in 2025 from VND148trn ($6.1bn) in 2024, by way of gross written premium.
This follows successive falls of 12% in 2023 and an estimated 5.7% in 2024, in keeping with GlobalData.
Nevertheless, the life insurance coverage market in Vietnam is predicted to rebound and register optimistic development beginning in 2026, pushed by an getting old inhabitants, low insurance coverage penetration, rising family earnings, and favorable regulatory initiatives. The market is projected to develop at a compound annual development price (CAGR) of three.2% throughout 2025-29 to succeed in VND165.4trn ($6.4bn) in 2029.
Swarup Kumar Sahoo, senior insurance coverage analyst at GlobalData, mentioned: “Irregularities in life insurance coverage distribution have led to a decline in shopper confidence, leading to life insurance coverage market contraction throughout 2023-24. False commitments, imprecise provisions, misselling, and pushing life insurance policies as necessary with financial institution loans have resulted in a confidence disaster amongst shoppers.”
Low shopper confidence and fraudulent promoting practices led to very excessive coverage cancellations, leading to a decline within the variety of energetic life insurance coverage insurance policies and insurance coverage penetration. The variety of energetic insurance policies declined by 7.5% in 2023 and three.7% in 2024.
Additionally, life insurance coverage penetration declined from 1.9% in 2022 to 1.5% in 2023 and additional to an estimated 1.3% in 2024.
Sahoo added: “Amid the boldness disaster, nevertheless, strict laws to regulate these irregularities and demographic shifts will help market restoration. Moreover, the low life insurance coverage penetration in Vietnam, which is way decrease than APAC friends similar to Thailand (3.5%) and Taiwan (Province of China) (8.7%), offers ample development alternatives.”
