HCMC – The Ministry of Finance has projected that total assets of Vietnam’s insurance industry could exceed VND1.06 quadrillion this year, up nearly 30% from 2022.
The ministry is seeking feedback on a draft amendment to the Law on Insurance Business, noting that market growth has shown signs of slowing. Most indicators for 2022-2025 are forecast to rise by less than 10% annually.
By 2025, non-life insurance assets are expected to reach nearly VND149.3 trillion, while life insurance assets could total VND918.6 trillion, representing an average annual growth rate of 9.75%.
Insurance reserves are estimated at VND712 trillion by 2025, a 34.3% increase against 2022. Non-life insurance would account for VND42.3 trillion and life insurance VND669.7 trillion, with average annual growth of 10.3%.
In contrast, premium revenue is projected to decline. By 2025, the figure may fall 3.3% from 2022 to VND239.6 trillion, with non-life contributing VND85.9 trillion and life VND153.7 trillion, equivalent to a 0.91% annual decrease.
Meanwhile, insurance payouts are forecast to rise sharply. Total payments could hit VND104.5 trillion in 2025, up 55.4% from 2022. Of this, non-life payouts are expected at VND25.9 trillion and life payouts at VND78.5 trillion, growing at an average of 18.2% a year.
Premiums handled via brokers are also expected to increase, reaching VND19.6 trillion by 2025, up 16.7% from 2022, or 13.6% per year on average.
Vietnam’s insurance companies have expanded nationwide with over 1,000 branches and representative offices, nearly one million agents, and more than 2,100 products available in the market, according to the ministry.
However, the ministry said current insurance regulations remain inconsistent with broader economic development policies, particularly for the private sector, and lack alignment with related laws. The proposed amendments aim to give insurers greater flexibility in product design and better meet market demand.
The draft includes 27 revisions to the existing law, focusing on five key areas: simplifying licensing and business conditions; cutting administrative procedures; granting more authority to local governments in supervision; addressing issues related to motor vehicle insurance fees, transparency, and branch regulations; and strengthening requirements on capital, governance, personnel, and agent certification.
