Vietnam's life insurance market has been through significant upheaval over the last four years. Following a period of rapid expansion, there has been a sharp correction triggered by the bancassurance mis-selling crisis in late 2022, according to a new report by Milliman.
The new report, “Vietnam: Vietnam’s life insurance landscape after the mis-selling crisis -Cautious optimism reigns for a more disciplined and sustainable growth phase” published on 8 June 2026 revealed that since 2025, the market has entered a more disciplined rebuilding phase shaped by tighter regulations and changing customer expectations.
“Although new business (NB) volumes have declined in the near term, the long-term sentiment remains hopeful, given Vietnam’s favourable demographics, rising affluence and low insurance penetration.”
The report said the market appears to have bottomed out in 2025, with both agency and bancassurance volumes falling to 2017 levels. This is a significant reset, paving the way for a more sustainable growth phase.
“Looking ahead, we expect the market to recover from 2026 onwards, with the potential of more than doubling NB premiums from the 2025 level in five years, exceeding pre-crisis levels. Longer-term growth is expected to taper to GDP growth forecasts (~10%) following a strong rebound in the early years.”
Vietnam’s regulatory overhaul is intended to improve customer outcomes, strengthen conduct standards and reduce the risk of mis-selling. Key changes include:
- Tighter control on bancassurance sales practices, including restrictions on product bundling
- More detailed disclosure and illustration requirements, and revamped product guidelines targeted at universal life and unit-linked products
- Caps on commissions, incentives and certain product charges
- Transition towards risk-based capital (RBC) reporting, with planned implementation post 2030