Vietnam’s non-life market holds steady with 2024 premium rise: AM Best

AM Best warned of low investment returns and rising reinsurance costs.

Vietnam’s non-life insurance market will likely keep a stable outlook due to strong demand, economic growth, and regulatory improvements, AM Best said.

In its latest report, the agency noted that gross written premiums rose in 2024, driven by health, personal accident, and property insurance, supported by rising healthcare costs and increased digital distribution.

Vietnam’s 7.1% GDP growth in 2024 also contributed to the market’s expansion. 

Whilst global trade uncertainties and slower growth in key partner economies may weigh on commercial insurance, Vietnam’s competitive labour costs and extensive trade agreements continue to support long-term growth.

Regulatory enhancements, including new rules for fire and explosion insurance and the development of a risk-based capital regime, are strengthening the market. 

However, AM Best flagged challenges such as low investment returns and rising reinsurance costs, particularly following major storms like Typhoon Yagi in 2024 and Tropical Storm Wipha in 2025.

Despite these risks, AM Best said the market remains on a stable trajectory, backed by strong fundamentals and improving oversight.