Vietnam’s non-life insurance market is attracting foreign insurers and domestic financial groups, with health and personal accident products leading premium expansion through strategic partnerships. The market continues to grow, but competition is expected to intensify as more insurers enter and existing players pursue growth.
The retail market has seen significant growth in digital channels and embedded insurance, while demand for electric vehicle insurance is expected to increase with regulatory support. According to a report, Vietnam’s non-life insurance sector will remain stable over the next 12 months, driven by strong economic growth and rising insurance demand.
Vietnam’s macroeconomic conditions and higher government spending will continue to drive demand for commercial insurance. Technology adoption and wider distribution networks are supporting growth in retail products, such as health and personal accident insurance. Recent regulatory changes are expected to improve premium adequacy and allow insurers to respond to changing market conditions.
The International Monetary Fund forecasts Vietnam’s economy to grow 7.5% in 2026, with electronics exports, foreign direct investment, and supply chain diversification supporting economic growth. The report notes that changes to the rate-making process give insurers greater flexibility to adjust pricing for voluntary motor insurance based on claims experience.
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Decree No. 105/2025/ND-CP, effective July 1, 2025, is expected to strengthen premium adequacy in property insurance and improve underlying risk profiles through new safety requirements for property management.
The market recorded strong premium growth in 2025, led by health and personal accident insurance through strategic partnerships, including bancassurance and embedded insurance offerings. Operating earnings also recovered in 2025, helped by improved underwriting results and higher rates for compulsory fire and explosion insurance.
Over the next 12 months, insurers are expected to benefit from ample reinsurance capacity and more favorable renewal terms, enabling them to strengthen protection against severe catastrophe losses.
Despite the positive outlook, there are challenges ahead for Vietnam’s non-life insurance market. Intensifying competition and regulatory changes will require insurers to be agile and adaptable in order to remain competitive.
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For now, however, the market remains on a stable footing, with strong economic growth and rising insurance demand supporting premium expansion.
They will need to manage their risk effectively.
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