Vietnam's life insurance goals may miss 2025 targets

The government had set goals for 15% of the population to hold life insurance.

Vietnam's life insurance industry may fall short of the Government's 2025 targets due to slower growth and persistent challenges, according to Vietn Nam News. 

The government had set goals for 15% of the population to hold life insurance policies and for the average premium-to-GDP ratio to reach 3.5% by 2025. 

However, recent developments suggest these targets may need to be revised downward.

By the end of September 2024, the number of active life insurance contracts was approximately 12 million, an 11% decrease compared to the previous year. 

This figure is significantly below expectations for a country with over 100 million people. Deputy General Secretary of the Vietnam Insurance Association, Ngô Trung Dũng, acknowledged the shortfall, noting the gap between current participation levels and the Government's ambitions.

Whilst 87% of Vietnam’s population now has bank accounts, only 12% have life insurance.