Life insurance - Vietnam

Vietnam

The Life insurance market market in Vietnam is expected to reach a market size (gross written premium) of US$6.35bn in 2024.
In the same year, the average spending per capita in the Life insurance market market is projected to amount to US$63.86.
Looking ahead, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 0.99%, resulting in a market volume of US$6.67bn by 2029.
When comparing globally, it is worth noting that the United States is expected to generate the highest gross written premium of US$1,288.0bn in 2024.
In Vietnam, the life insurance market is experiencing significant growth due to increased awareness and demand for financial protection among the population.

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Analyst Opinion

Over the past decade, the Life insurance market in Vietnam has experienced significant growth and development. Customer preferences in Vietnam lean towards protection and long-term financial planning, driving the demand for life insurance products. As the economy grows and incomes rise, individuals are increasingly looking for ways to secure their financial future and protect their families. Trends in the market indicate a shift towards digitalization and innovation. Insurance companies in Vietnam are leveraging technology to reach a wider customer base and offer more tailored products and services. Additionally, there is a growing interest in investment-linked insurance products as people seek to maximize their returns in a rapidly changing economic landscape. Local special circumstances, such as a young and growing population, contribute to the buoyant Life insurance market in Vietnam. With a large segment of the population entering the workforce and starting families, there is a growing awareness of the need for life insurance as a means of financial security. Underlying macroeconomic factors, including stable economic growth, low insurance penetration rates, and favorable government policies, further support the expansion of the Life insurance market in Vietnam. As the economy continues to develop and regulatory frameworks become more robust, the life insurance sector is expected to thrive in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.