Vietnam’s Life Insurance Market Shows Growth and Shifts in Product Structure
According to the Insurance Association of Vietnam (IAV), the total new premium revenue in Vietnam’s life insurance sector reached VND 5,578 billion ($235 million) in March 2025, representing a modest 2.4% increase compared to the same period last year. The top five companies leading in new premium revenue were Bao Viet Life with VND 1,372 billion, AIA with VND 642 billion, Dai-ichi Life with VND 634 billion, Generali with VND 441 billion, and Prudential with VND 401 billion.
The product structure in the life insurance market showed significant shifts. General insurance products continued to dominate, accounting for 47% of the market, although they recorded an 8.9% decrease. In contrast, term insurance products experienced substantial growth, making up 30.3% of the market, up by 19.8% from the previous year. Unit-linked insurance products also saw a modest increase, now comprising 7.2% of the market, with a 2.6% rise compared to the same period last year. Conversely, mixed insurance products declined sharply, accounting for just 4.3% of the market, down 36.2%. Other insurance products, such as health insurance, retirement, and whole life insurance, made significant progress.
The growth in term insurance and unit-linked products indicates increasing investor interest in products tied to investment performance. This shift suggests a changing consumer preference towards more flexible and potentially lucrative insurance products. The decline in mixed insurance products, on the other hand, may reflect a saturation in traditional product offerings or a need for insurers to innovate and adapt their product structures to meet evolving consumer demands.
The life insurance market in Vietnam is evolving, with consumers increasingly seeking products that offer both protection and investment opportunities. Insurers are likely to focus on developing products that cater to these changing preferences while navigating the competitive landscape.
