Vietnam’s life insurance sector experienced a 4.3% growth in new contracts during the first quarter of 2025, according to Ngo Trung Dung, vice secretary general of the Insurance Association of Vietnam (IAV).
Growth in New Contracts, But Shifts in Product Preferences
The number of new contracts in Vietnam’s life insurance industry rose by 4.3% year-on-year in the first quarter of 2025. Investment-linked products remained the most popular, making up over 54% of the total new contracts, although they saw a 7.7% decline compared to the previous year.
General insurance products, which accounted for 47% of new contracts, also declined by 8.9% year-on-year. In contrast, unit-linked insurance products showed a slight increase, rising 2.6% year-on-year to represent 7.2% of new contracts. This shift reflects a growing interest in investment-oriented insurance products, according to Mr. Dung.
Strong Performance in Term and Health Insurance Products
Term insurance products saw a remarkable 30% growth, with a nearly 20% increase in new contracts compared to the same period last year. Meanwhile, mixed insurance products declined by 4.3%, with a significant drop of more than 36% from the previous year.
Other types of insurance, such as health, retirement, and whole-life insurance, performed strongly, making up 11% of all new contracts and growing by 118%. This trend highlights increasing customer interest in long-term protection and comprehensive care products.
Challenges and Market Insights
Despite the growth in new business, the total number of active contracts fell by 5.5%, reaching nearly 11.45 million contracts at the end of the quarter. Universal insurance products continued to dominate, comprising 57.6% of total contracts, followed by mixed insurance products at 24%.
New Premium Revenue and Market Leaders
The total new premium revenue for March 2025 was estimated at VND5.58 trillion (USD 223 million), reflecting a 2.4% increase from the previous year. Bao Viet Life led the market with VND1.37 trillion in new premiums, followed by AIA (VND642 billion), Dai-ichi Life (VND634 billion), Generali (VND441 billion), and Prudential (VND401 billion).
The cumulative premium revenue for the first quarter of 2025 is estimated at over VND34 trillion, up by 1.2% year-on-year. The majority of the revenue continues to come from general linked products, accounting for 56.4% of the total. Mixed and unit-linked products contribute 14.2% and 13.9%, respectively. Meanwhile, other insurance categories, including whole life, death, retirement, health, and endowment, make up just 2.4% of total revenue.
Overall, the life insurance market in Vietnam is showing resilience, with growing demand for long-term insurance products and a shift towards more investment-linked options, though challenges remain in the broader market.
Vietnam’s Life Insurance Market: Growth and Trends in 2025
Vietnam’s life insurance sector experienced a solid 4.3% growth in new business during the first quarter of 2025, driven by rising demand for investment-linked and term insurance products.
Shifts in Product Demand and Market Performance
The growth of 4.3% in new contracts in Vietnam’s life insurance industry comes despite a decrease in demand for certain types of insurance. Investment-linked insurance products remained dominant but showed a decline of 7.7% year-on-year. Meanwhile, unit-linked insurance products saw a slight rise of 2.6%, suggesting growing interest in policies tied to investment returns.
Positive Trends in Term and Health Insurance
Term insurance products showed impressive growth, rising by over 30%, while mixed insurance products faced a decline of more than 36%. Health, retirement, and whole-life insurance products saw strong demand, with new contracts increasing by 118%, reflecting a shift towards comprehensive long-term protection plans.
Challenges and Future Outlook
The total number of active insurance contracts declined by 5.5% to just under 11.45 million, with universal insurance products still holding the largest share at 57.6%. Mixed insurance products made up 24%, continuing to see steady market presence.
New Premiums and Market Leadership
For the first quarter, new premium revenue reached VND5.58 trillion (USD 223 million), marking a 2.4% increase compared to last year. Bao Viet Life led with the highest new premiums, followed by AIA, Dai-ichi Life, Generali, and Prudential. Overall, total premium revenue for Q1 2025 is estimated at VND34 trillion, reflecting a 1.2% year-on-year growth.
The life insurance market in Vietnam remains dynamic, with an ongoing shift towards investment-linked products and increasing customer interest in long-term care solutions.
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