Vietnam's life insurance market in 2025 remains in a cautious recovery phase following two difficult years of contraction.
Insurance Association of Vietnam (IAV) Deputy Secretary General Ngo Trung Dung told Asia Insurance Review that 2025 was the third consecutive year that the life insurance market has declined in both the number of new insurance policies (dropped by approximately 7%) and new business premium revenue (dropped by approximately 3%), although the rate of decline has been much slower than in 2023 and 2024.
“However, I see 2025 as a crucial turning point for life insurance, heading towards a stronger and more sustainable growth phase in the following years,” Mr Dung said.
Demand patterns in Vietnam’s life insurance market continue to shift.
“Traditional life insurance products, such as endowment plans, are seeing a steady decline in both premium income and new policy sales as customer preferences move away from long-term savings-focused products,” he said.
He said investment-linked insurance remains the most popular segment and still accounts for most sales, but growth has moderated, with the segment recording declines over the past three years compared with earlier periods. In contrast, he said health insurance riders are emerging as the fastest-growing area of the market, with strong demand not only for basic medical coverage but also for CI protection and more comprehensive healthcare packages.
When asked if life insurers in Vietnam are shifting towards simpler and more protection-based products, Mr Dung said the shift in Vietnam’s life insurance market is not towards pure simplification, but rather a rebalancing of product portfolios.
“Insurers are adjusting their product strategies to meet growing demand for clearer, more transparent protection, while still maintaining a diverse range of offerings to support different financial objectives.” “Pure protection products – such as term life, critical illness and health insurance – are accounting for a rising share of new demand and have recorded strong growth, with health insurance premium revenue in the life segment in 2025 expected to nearly double from 2024,” he said.
At the same time, he said investment- and savings-linked products continue to dominate the market, although their overall share is gradually declining as insurers refine features and benefits to better align with customers’ clearer expectations and evolving needs.
A more in-depth version of this article will appear in the March issue of Asia Insurance Review, out on 1 March 2026.