According to the Ministry of Finance report, as of the end of February 2025, total insurance premium revenue reached approximately VND 34.5 trillion, marking a 5.23% increase year-over-year. Total assets stood at VND 1,018 trillion, up 10.71%, while reinvestment into the economy amounted to VND 860 trillion, reflecting a 12.12% increase compared to the same period last year. Notably, the non-life insurance sector continued to play a significant role in driving the overall revenue growth of the industry.

For the life insurance sector, according to Đầu tư Chứng khoán, the annualized new business premium revenue for the first two months of 2025 remained more than 5% lower than the same period last year. New business premium revenue from individual agent channels declined by over 10%, while bancassurance and other channels saw an increase of approximately 2%.

Life insurance companies have yet to break free from the declining growth trend observed since last year. According to statistics from the Vietnam Insurance Association, as of December 31, 2024, the total insurance premium revenue of the market was estimated at VND 227.398 trillion, a 0.3% decrease compared to 2023. Within this, non-life insurance premium revenue was estimated at VND 79.348 trillion, reflecting an 11.7% increase, whereas life insurance premium revenue stood at VND 148.050 trillion, marking a 5.7% decline compared to 2023.

Speaking with Dau tu Chung khoan, a representative from a life insurance company noted that changes in agent recruitment policies and a new commission structure have led to lower agent incomes, making recruitment less attractive. The inability to meet recruitment targets has subsequently resulted in lower new business premium revenue in the life insurance sector. This remains a persistent challenge that insurance companies are striving to resolve.

The Ministry of Finance projects that in 2025, total insurance premium revenue will reach an estimated VND 239.636 trillion, representing a modest 0.05% increase compared to the previous year. Within this, non-life insurance premium revenue is expected to reach VND 85.938 trillion (a 9.77% increase), while life insurance premium revenue is estimated at VND 153.698 trillion (a 3% increase).

With positive forecasts for 2025, the non-life insurance market is expected to continue its growth, contributing significantly to the development of Vietnam’s insurance industry. However, for the life insurance sector, achieving the 3% growth target for 2025 remains a significant challenge.

Source: Tinnhanhchungkhoan