Non-life insurances - Vietnam

Vietnam

Vietnam's Non-life insurance market is expected to witness significant growth in the coming years.
According to projections, the market size in terms of gross written premium is anticipated to reach US$5.75bn in 2024.
Furthermore, the average spending per capita in the Non-life insurance sector is predicted to amount to US$57.79 in the same year.
Moreover, the market is expected to display a steady annual growth rate of 4.55% between 2024 and 2028.
This growth trajectory is projected to result in a market volume of US$6.87bn by the end of 2028.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium in the Non-life insurance market, amounting to US$3,371.0bn in 2024.
This showcases the dominance of the US market in the global context.
These figures highlight the potential and significance of the Non-life insurance market in Vietnam, as it continues to expand and contribute to the overall economy of the country.
Vietnam's non-life insurance market is experiencing rapid growth due to increasing awareness and demand for coverage.

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Analyst Opinion

Over the past few years, the Non-life insurances market in Vietnam has been experiencing significant growth and development.

Customer preferences: Customers in Vietnam are showing an increasing demand for various types of non-life insurance products, such as motor vehicle insurance, property insurance, and health insurance. This trend is driven by a growing awareness of the importance of insurance protection, coupled with rising disposable incomes and urbanization. Additionally, customers are seeking more customized insurance products that cater to their specific needs and preferences.

Trends in the market: One notable trend in the non-life insurance market in Vietnam is the increasing adoption of digital channels for insurance purchases and claims processing. Insurers are leveraging technology to streamline processes, improve customer experience, and reach a wider audience. Moreover, there is a growing emphasis on innovation in product development, with insurers introducing new and specialized insurance products to meet evolving customer needs.

Local special circumstances: In Vietnam, the regulatory environment plays a crucial role in shaping the non-life insurance market. The government has been implementing reforms to enhance transparency, strengthen consumer protection, and promote market competitiveness. These initiatives are aimed at fostering a more sustainable and resilient insurance sector that can better serve the needs of the population.

Underlying macroeconomic factors: The growth of the non-life insurance market in Vietnam is also supported by favorable macroeconomic conditions. The country's stable economic growth, expanding middle class, and increasing urbanization are driving demand for insurance products. Furthermore, the government's efforts to improve infrastructure and disaster resilience are creating opportunities for insurers to offer products that mitigate risks associated with natural disasters and other unforeseen events.

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.