Vietnam insurance industry continues the growing trend in recent years, posting robust growth at 14.5% CAGR (2012-2016) with market size estimated at US$4.6bn in 2016. This strong growth is observed across the board, as both life and non-life sector experienced a sharp increase, growing at CAGR 20.7% and 8.6% respectively. At the moment, the non-life insurance sector accounts for 42.2% of the total insurance market with more than 70% contributed by motor vehicle and health insurance products. The strong growth in this sector is mainly attributed to the increasing number of fire incidents and environmental disasters, causing businesses to be more concerned with investing in non-life insurance as a mean to mitigate against the risks from the occurrence of such events. This sector is currently dominated by local firms with big players like Bao Minh, PVI, Bao Viet, thanks to their local perspective and network advantage.
Meanwhile, the life sector also experienced rapid growth, mostly due to the growing concerns in regard to food safety and health-related issues. On the contrary, this segment is dominated by foreign firms like Prudential, Manulife, Dai-ichi, Bao Viet, etc., given their rich experience, technical knowledge, as well as the ability to design insurance packages tailored to the need of the customers. Going forward, growing Vietnam’s rising middle-class population, successful implementation of insurance sector restructuring plan and the introduction of new policies for insurance products are the basis to expect that the sector will continue to grow in the future.
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