The latest market snapshot from GlobalData;
The general insurance industry in Vietnam is projected to grow at a compound annual growth rate (CAGR) of 7% from VND80.0 trillion ($3.2 billion) in 2025 to VND104.8 trillion ($3.9 billion) by 2029, in terms of gross written premium (GWP), according GlobalData, a leading data and analytics company.
GlobalData’s Vietnam General Insurance Report reveals that the general insurance market in Vietnam is estimated to reach VND80.0 trillion ($3.2 billion) in 2025, reflecting an annual growth rate of 5.9%. This growth is attributed to the increasing frequency of natural disasters, a growing awareness of insurance benefits, the expansion of health insurance offerings, demand for microinsurance products, and favorable regulatory reforms.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “The general insurance industry in Vietnam is poised for growth, supported by a burgeoning economy and rising demands for property and casualty insurance products.”
GlobalData forecasts Vietnam’s economy to grow by 6.5% in 2025 and 6.4% in 2026, supported by the export of technology products, foreign direct investment, and increasing public investment in infrastructure. However, the negative impact of the US reciprocal baseline tariff of 10% plus an additional tariff of 46% (currently on hold for three months) looms large on the country’s growing economy.
Personal Accident and Health (PA&H) insurance is the largest line of business and is expected to account for 32.0% of the general insurance GWP in 2025. The rising healthcare costs, led by high medical inflation and an increasing awareness of health insurance benefits among the population, are supporting growth in this line of business.
Swarup adds: “The adoption of technology to streamline medical examination and treatment procedures under the amended health insurance law, effective July 01, 2025, is expected to speed up claims processing and reduce fraudulent health claims, improving insurers’ profitability. Additionally, the expansion of microinsurance addressed challenges such as affordability, accessibility, and user suitability. These changes will boost consumer confidence and support the forecasted health insurance GWP growth of 5.3% CAGR during 2025-29.”
Property insurance follows closely and is estimated to account for 30.9% of the general insurance GWP in 2025. It is set to grow at a CAGR of 11.2% during 2025-29, driven by the increasing demand for NatCat insurance policies in response to frequent extreme weather events and natural disasters.
According to the Ministry of Public Security, 3,922 fire incidents were reported across the nation in the 12 months to September 15, 2024. These incidents caused property damage worth VND296.1 billion ($1.2 billion). The frequent occurrence of fire-related incidents and tropical storm-related devastations, such as the Super Typhoon Yagi and Storm Trami in 2024, will continue to support strong demand for property insurance, which is expected to grow by 10.5% in 2025.
Motor insurance, the third-largest line of business, is estimated to represent 23.5% of the general insurance GWP in 2025. The motor insurance market declined by 2.2% in 2023 due to reduced vehicle sales; it is expected to recover gradually from 2024 onward. According to the Vietnam Automobile Manufacturers’ Association, total vehicle sales in November 2024 reached 44,200, marking a 58% increase over the same period in 2023. Increasing vehicle sales, coupled with regulatory mandates for compulsory motor liability insurance, will contribute to the growth of this segment.
The government’s Action Program on Green Energy Transition in the Transport Sector to fully transition to electric and green energy vehicles by 2050 has increased the popularity of electric vehicles. Considering the growth opportunity, some of the insurers have started offering comprehensive insurance for these vehicles, whereas most motor insurers have started offering specialized products, including battery insurance.
Other general insurance lines are estimated to account for the remaining 13.6% share of the general insurance GWP in 2025.
Sahoo concludes: “Regulatory reforms and a growing demand for health and natural hazards insurance will drive Vietnam’s general insurance market growth. Furthermore, the growing popularity of microinsurance and specialized products for electric vehicles will enhance market penetration in the coming years. However, the proposed US reciprocal tariff will change the dynamics and is an emerging threat to the industry’s growth and insurers’ profitability.”
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