Vietnam’s insurance sector generated an estimated VNĐ237.2 trillion (US$9.1 billion) in premium revenue in 2025, with non-life business growing more quickly than life insurance, according to official data.

Premium growth led by non-life lines

Figures from the National Statistics Office (NSO), cited by Vietnam News, show that total insurance premium income rose 4% in 2025 from the previous year. Life insurance premiums were estimated at VNĐ148.8 trillion, up 0.5%, while non-life premiums were projected at VNĐ88.4 trillion, an increase of 10.3% year-on-year. In the fourth quarter of 2025 (Q4 2025), total premium revenue was estimated to be 4.5% higher than in the same period of 2024. Life premiums in the quarter were expected to rise 1.1%, compared with an 11.1% increase in non-life premiums, pointing to stronger growth on the non-life side.

Claims and investment activity rose alongside premium income. Total insurance benefits paid in 2025 were estimated at VNĐ91.8 trillion, up 13.5% from 2024. Funds invested in the domestic economy by insurers were expected to reach nearly VNĐ959 trillion, an increase of 10.3% year-on-year. Aggregate balance sheet indicators also increased. Total assets of the insurance market were estimated at VNĐ1.1 quadrillion, up 8.6%. Insurance reserves were expected to rise 8.8%, while the total equity capital of insurers was forecast to grow 3.8%. Vietnam currently has 86 insurance companies operating across life and non-life segments.

Product mix and segment dynamics

Data from the Insurance Association of Vietnam (IAV) indicate that in the non-life market, health insurance generated the highest premium revenue in the first nine months of 2025. Health was followed by property insurance, engineering, motor, marine, and other classes. In life insurance, total premiums for the first nine months of 2025 were estimated at VNĐ105.8 trillion, down 0.65% from the same period a year earlier. The data point to slower life premium growth relative to non-life lines, particularly health and property-related cover, which may influence how insurers rebalance their portfolios. For market participants, these shifts in composition are relevant for capital management, underwriting appetite, and product design, particularly as supervisors maintain focus on consumer protection, solvency, and conduct.

ASEAN study links insurance coverage to GDP outcomes

At a regional level, a Prudential report examined how expanded life and non-life (including health) insurance coverage in six ASEAN markets – Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam – could affect economic performance and financial resilience. Speaking at the 2025 UK–Việt Nam Business Summit in Ho Chi Minh City on Nov. 5, Steven Chan, group chief government relations and policy officer at Prudential plc, noted the sector’s recent trajectory in Southeast Asia. “In recent years in Southeast Asia the insurance industry has grown faster than GDP – 6.1% versus 4.9%,” Chan said, as reported by Vietnam News.

Despite this growth differential, the report notes that insurance penetration in the ASEAN-6 remains around 3% of GDP, compared with a global average of about 7%. The study estimates that a 50% increase in non-life insurance coverage across the bloc by 2050 could be associated with GDP per capita growth of up to 3.1% and an increase in total GDP of 2.6%. In the case of life insurance, it projects potential GDP per capita growth of 5.1% and GDP growth of 4.4% under similar coverage expansion.

Vietnam penetration targets and policy direction

Vietnam’s insurance penetration is currently slightly below 3% of GDP. According to the Prudential study, a 50% rise in non-life coverage could lift the country’s GDP per capita by 2.5%, while a 200% expansion in non-life coverage could be associated with GDP per capita growth of about 10.5%, or roughly US$125 billion.

The report describes insurance as part of Vietnam’s efforts to move toward higher-value economic activity, deepen capital markets, and respond to climate and health risks. “Việt Nam’s insurance sector currently stands at a pivotal moment. With regulatory reforms, strategic initiatives, and its recent upgrade to ‘emerging market’ status, the country is poised to rise from its low insurance penetration rate. For us, now is the time to turn ambition into actions, such as investing in diversified portfolios, developing an interoperable health-data system, and [creating] enhanced public-private partnerships,” Chan said.

Ngô Trung Dũng, deputy general secretary of the IAV, said the national development strategy for life insurance sets a goal for 18% of the population to hold life policies by 2030, with overall insurance penetration reaching 3.5% of GDP. The roadmap outlines measures to refine the legal framework, broaden distribution channels, develop new products, apply digital technologies, and expand health insurance.