Vietnam Non-Life Market Sees Rising Competition

Int’l Desk: Vietnam’s non-life insurance market is drawing more foreign companies and local financial groups as they chase growth, though the rising number of players is set to make competition tougher.

Health and personal accident cover led the recent expansion through partnerships such as bancassurance and embedded products, according to a report from AM Best.

Digital channels and embedded insurance rank among the fastest growing parts of the retail side, while demand for electric vehicle cover is expected to climb as rules evolve. The sector looks set to stay steady over the next year thanks to solid economic growth, higher insurance needs, digital uptake and regulatory updates. Macro conditions and increased government spending should keep supporting commercial lines as technology and broader distribution networks help retail products move forward.

The International Monetary Fund expects Vietnam’s economy to expand 7.5 percent in 2026 after 8 percent growth in 2025. Electronics exports, foreign direct investment and supply chain shifts continue to underpin that outlook even with risks from global trade tensions and geopolitics.

Recent rule changes give insurers more room to set prices on voluntary motor cover based on claims data.

Decree 105 from 2025, which started in July of that year, aims to firm up premiums in property insurance and lift risk standards through new safety requirements for property managers.