Vietnam’s life insurance industry is at risk of missing its 2025 targets due to slower-than-expected growth and ongoing challenges, according to Viet Nam News.
The government set ambitious goals for the sector, aiming for 15% of the population to hold life insurance policies and for the average premium-to-GDP ratio to reach 3.5% by 2025. However, recent trends suggest these targets may need to be reassessed.
As of September 2024, the number of active life insurance contracts stood at approximately 12 million, reflecting an 11% decline compared to the previous year. This figure is notably below expectations for a nation with a population exceeding 100 million.
Ngô Trung Dũng, Deputy General Secretary of the Vietnam Insurance Association, acknowledged the shortfall, emphasizing the gap between current insurance coverage levels and the government’s ambitious goals.
While 87% of Vietnam’s population has bank accounts, only 12% hold life insurance, highlighting the challenge in expanding the sector.
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