INSURANCE COMPANIES ANTICIPATE GROWTH IN 2025

The insurance market is showing signs of recovery after a period of turmoil.

An office of FWD Vietnam in Đà Nẵng. — Photo FWD Vietnam

HÀ NỘI — More than half of insurance companies expect the market to grow by 5-10 per cent this year, driven by the resonance of internal recovery and policy momentum, according to a survey by Vietnam Report.

The information was updated by Vietnam Report JSC at the event announcing the Top 10 prestigious insurance companies this year.

The insurance market is showing signs of recovery after a period of turmoil. The total premium revenue of the entire market is estimated at nearly VNĐ75 trillion (US$ 3.3 billion) in the first four months of the year, up 5.4 per cent year-on-year.

Notably, the non-life segment continued to drive growth, with an increase of approximately 11 per cent, fuelled by the recovery in property insurance demand and new policies like Decree 105/2025/NĐ-CP, which mandates higher compulsory fire and explosion insurance premiums, creating significant growth potential in the second half of the year.

Meanwhile, the total assets of the entire industry are estimated to reach VNĐ1 trillion, marking an 8.79 per cent increase, reflecting the strong financial capacity of the insurance companies.

Up to now, the wave of banks entering the insurance market was opening up expectations for an integrated financial-insurance ecosystem, supporting the expansion of distribution channels and raising access to consumers, said Vũ Đăng Vinh, general director of Vietnam Report.

Technology emerges as a bright spot and the most important 'transformation key' of the industry.

No longer simply a support tool, technology is becoming a strategic pillar to help businesses optimise costs and personalise customer experiences.

Also, according to a survey by Vietnam Report, 100 per cent of insurance enterprises identified technology as the biggest opportunity this year.

Notably, the rate of enterprises planning to increase investment in technology has reached an all-time high, rising from 95.5 per cent last year to 98.7 per cent this year.

It has reflected the determination to accelerate the digitalisation of the entire industry.

Analysing the current implementation of insurance technology (Insurtech) in the market, Vinh also noted clear progress.

The rate of businesses applying technologies such as AI, OCR (Optical Character Recognition), cloud computing, and chatbots in their operating processes has increased sharply in just one year.

Notably, 92.2 per cent of businesses have now applied AI in the insurance claim processing, appraisal, and compensation stages, double the rate of the previous year (40.9 per cent).

Along with the effort to transform from within, the market is also witnessing a positive shift in consumer behaviour.

Following the wave of contract cancellations and negative reactions in 2023, people have become more proactive in researching and selecting products.

No longer making hasty decisions based on a few short introductions, customers are now proactive in researching, asking questions and choosing products that better suit their actual needs.

The positive change in consumer perception is not a coincidence, but the result of a series of strong adjustment efforts by insurance companies following the crisis of trust.

The Top 10 prestigious insurance companies this year honours brands including Bảo Việt Life Insurance Corporation, Prudential Vietnam, Dai-Ichi Life Vietnam, AIA Vietnam, Manulife Vietnam, Chubb Life Vietnam, Generali Vietnam, FWD Vietnam, Hanwha Life Vietnam and Cathay Vietnam. — VNS

Source: VNS