The final insurance coverage business in Vietnam is ready to develop at a CAGR of 6.7% from VND71.1trn ($3bn) in 2023 to VND98.3trn ($3.9bn) in 2028.
That is in line with GlobalData, which additionally predicts that the final insurance coverage business in Vietnam is anticipated to develop by 2.4% in 2023 and 5% in 2024.
GlobalData additionally acknowledged that these rises are on account of beneficial regulatory reforms, rising demand for nat-cat insurance coverage on account of local weather change, and a post-Covid-19 rise within the want for medical health insurance.
Swetansha Chauhan, insurance coverage analyst at GlobalData, stated: “After experiencing a major progress of 17.5% in 2022, the final insurance coverage business is projected to realize slower progress in 2023 on account of a slowdown in Vietnam’s financial system, which is anticipated to impression all main common insurance coverage traces. Nonetheless, the final insurance coverage progress is anticipated to revive from 2024 onwards with a revival within the world financial system and easing inflation ranges.”
Private Accident and Well being (PA&H) insurance coverage is the largest line of enterprise, accounting for a 35% share, by way of GWP, in 2023. PA&H insurance coverage grew by 3.2% in 2023, primarily pushed by growing well being consciousness after the pandemic and altering demographics, which embody an growing life expectancy and a quickly growing old inhabitants.
As well as, in line with the United Nations Inhabitants Fund (UNFPA), as of 2023, 10% of the inhabitants in Vietnam was aged 65 years and above, which is supporting the demand for medical health insurance.
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Chauhan added: “The growing value of medical remedies, pushed by a excessive demand for high quality healthcare and rising inflation, has led to a rise within the premium costs for medical health insurance insurance policies. Additionally, considerations about declining public well being infrastructure, with lengthy ready durations and restricted protection have led individuals to maneuver in the direction of non-public medical health insurance, which can assist PA&H insurance coverage progress. PA&H insurance coverage is anticipated to develop at a CAGR of seven.5% throughout 2023-28.”
