Vietnam insurance competition heats up as entrants multiply

Health and personal accident products led premium expansion through strategic partnerships.

Vietnamese non-life insurance market continues to attract foreign insurers and domestic financial groups seeking growth opportunities, but competition could intensify as more insurers enter the market and existing players pursue growth. 

In the retail market, digital channels and embedded insurance have been among the fastest-growing segments, whilst demand for electric vehicle insurance is expected to increase as regulatory developments support the market, according to AM Best’s report.

Vietnam's non-life insurance sector is expected to remain on a stable footing over the next 12 months, supported by strong economic growth, rising insurance demand, digital adoption and regulatory reforms.

Vietnam’s macroeconomic conditions and higher government spending are expected to continue driving demand for commercial insurance, whilst technology adoption and wider distribution networks are supporting growth in retail products such as health and personal accident insurance. 

Recent regulatory changes are also expected to improve premium adequacy and allow insurers to respond more quickly to changing market conditions. 

Vietnam's economy is forecast by the International Monetary Fund to grow 7.5% in 2026, easing slightly from 8.0% in 2025. 

AM Best said the country's electronics exports, foreign direct investment and supply chain diversification continue to support economic growth despite risks from rising global protectionism and geopolitical uncertainty. 

The report noted that changes to the rate-making process now give insurers greater flexibility to adjust pricing for voluntary motor insurance based on claims experience. 

It also said Decree No. 105/2025/ND-CP, which took effect on 1 July 2025, is expected to strengthen premium adequacy in property insurance and improve underlying risk profiles through new safety requirements for property management. 

The market recorded strong premium growth in 2025, with the momentum continuing into the first half of 2026. 

Growth was led by health and personal accident insurance through strategic partnerships, including bancassurance and embedded insurance offerings. 

Operating earnings also recovered in 2025, helped by improved underwriting results following the impact of Typhoon Yagi in 2024 and higher rates for compulsory fire and explosion insurance. 

Over the next 12 months, AM Best expects that insurers will continue to benefit from ample reinsurance capacity and more favourable renewal terms, enabling them to strengthen protection against severe catastrophe losses.