Vietnam's life insurance market is expected to shrink by 1.3% in 2025, with gross written premiums (GWP) dropping to $6.0bn from $6.1bn in 2024, according to GlobalData.
This projected decline follows consecutive decreases of 12% in 2023 and an estimated 5.7% in 2024, attributed to bancassurance sales irregularities and ongoing economic challenges.
According to GlobalData senior insurance analyst Swarup Kumar Sahoo, the recent downturn in Vietnam’s life insurance market is largely due to irregularities in distribution practices. Problems such as misleading commitments, unclear policy terms, mis-selling, and bundling life insurance with bank loans have undermined consumer trust, leading to a surge in policy cancellations.
As a result, the number of active life insurance policies declined by 7.5% in 2023 and is expected to drop by another 3.7% in 2024. Insurance penetration also fell from 1.9% in 2022 to 1.5% in 2023, with projections pointing to a further decrease to 1.3% in 2024.
2026
However, Vietnam’s life insurance market is expected to rebound in 2026, driven by an ageing population, low insurance penetration, rising household incomes, and regulatory reforms.
GlobalData forecasts a compound annual growth rate (CAGR) of 3.2% from 2025 to 2029, with the market reaching VND165.4tn ($6.4bn) by 2029.
“Post 2025, the outlook for Vietnam’s life insurance market looks optimistic due to stricter regulation to instil consumer confidence, technological advancements, and a focus on customer-centric products,” Mr Sahoo said in a press statement.