The latest country snapshot from GlobalData;
The life insurance market in Vietnam is forecast to contract by 1.3% to VND146.1 trillion ($6.0 billion) in 2025 from VND148.0 trillion ($6.1 billion) in 2024, in terms of gross written premium (GWP), following successive negative growths of 12% in 2023 and an estimated 5.7% in 2024 due to irregularities in bancassurance sales and economic challenges, according to GlobalData, a leading data and analytics company.
GlobalData’s Insurance database reveals the Vietnamese life insurance market, however, is expected to rebound and register positive growth starting in 2026, driven by an aging population, low insurance penetration, rising household income, and favorable regulatory initiatives. The market is projected to grow at a compound annual growth rate (CAGR) of 3.2% during 2025-29 to reach VND165.4 trillion ($6.4 billion) in 2029.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “Irregularities in life insurance distribution have led to a decline in consumer confidence, resulting in life insurance market contraction during 2023-24. False commitments, vague provisions, misselling, and pushing life policies as mandatory with bank loans have resulted in a confidence crisis among consumers.”
Low consumer confidence and fraudulent selling practices led to very high policy cancellations, resulting in a decline in the number of active life insurance policies and insurance penetration. The number of active policies declined by 7.5% in 2023 and 3.7% in 2024. Also, life insurance penetration declined from 1.9% in 2022 to 1.5% in 2023 and further to an estimated 1.3% in 2024.
Sahoo adds: “Amid the confidence crisis, however, strict regulations to control these irregularities and demographic shifts will support market recovery. Additionally, the low life insurance penetration in Vietnam, which is much lower than APAC peers such as Thailand (3.5%) and Taiwan (Province of China) (8.7%), provides abundant growth opportunities.”
The revised Insurance Business Law, effective November 2023, imposes a ban on selling life insurance products before and after 60 days of loan disbursement and a fine on banks for linking non-mandatory insurance with their products. This will strengthen consumer confidence and support growth in the life insurance market, which is forecasted to rebound and register positive growth starting in 2026.
Endowment insurance accounted for an estimated 86.1% share of the GWP in 2024. The high demand for endowment insurance is expected to be supported further by the March 2024 introduction of savings products with coverage against critical illness and hospitalization catering to the needs of the elderly population. This will be complemented by the adoption of technology such as AI, big data analytics, and digital platforms to enhance customer experience and service quality.
Supplementary or riders are very popular in Vietnam, as these make product offerings attractive and act as a major growth driver. Its share will continue to grow from 12.3% in 2024 to 13.7% in 2029 as insurers will focus on providing additional coverage along with improving service quality. This line of business is projected to grow at a CAGR of 4.9% during 2025-29.
Sahoo concludes: “Post 2025, the outlook for Vietnam’s life insurance market looks optimistic due to stricter regulation to instill consumer confidence, technological advancements, and a focus on customer-centric products. The aging population and rising healthcare costs will drive demand for comprehensive insurance products, ensuring a steady growth trajectory for the life insurance market over the next few years.”
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