Insurances - Vietnam

Vietnam

The Insurances market in Vietnam is projected to reach a market size (gross written premium) of US$12.08bn in 2024.
Life insurances dominate the market with a projected market volume of US$6.35bn in 2024.
The average spending per capita in the Insurances market amounts to US$121.40 in 2024.
When compared globally, the United States leads with the highest nominal value, reaching US$3,788.0bn in 2024.
The gross written premium is expected to show an annual growth rate (CAGR 2024-2029) of 2.59%, resulting in a market volume of US$13.73bn by 2029.
In global comparison, the United States will continue to generate the highest gross written premium, reaching US$3,788.0bn in 2024.
The insurance market in Vietnam is experiencing a surge in demand due to the country's growing middle class and increasing awareness of the importance of insurance coverage.

Market

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Currency

Analyst Opinion

The insurance market in Vietnam has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Vietnam are increasingly recognizing the importance of insurance in protecting their assets and securing their financial future. There is a growing awareness among the population about the benefits of insurance products, leading to an increase in demand for a wide range of insurance offerings.

Trends in the market: One notable trend in the insurance market in Vietnam is the rise of digital insurance services. Insurers are leveraging technology to reach a larger customer base and provide more convenient and efficient services. The shift towards digital platforms for insurance purchases and claims processing is transforming the industry and shaping the way insurers interact with customers.

Local special circumstances: Vietnam's insurance market is also influenced by the country's demographic trends. With a young and rapidly growing population, there is a large market of potential insurance customers who are looking to secure their future and that of their families. This demographic factor is driving the expansion of the insurance market in Vietnam.

Underlying macroeconomic factors: The economic growth and increasing disposable income in Vietnam are contributing to the development of the insurance market. As people's wealth and assets grow, the need for insurance as a risk management tool becomes more apparent. The stable economic conditions in the country are creating a favorable environment for insurance companies to expand their operations and introduce innovative products to meet the evolving needs of customers.

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.