Vietnam Motor Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Vietnam Motor Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Vietnam motor insurance market is estimated at approximately USD 690.5 million in the current year and is poised to grow at a CAGR of greater than 4.5% during the forecast period.

Over the past couple of years, the economic situation has changed a lot due to the pandemic, which has affected motor insurance revenue, but many businesses continue to achieve high profits. Insurance companies have been spending a lot of time expanding the business while strengthening the internal infrastructure in line with the profitable growing business strategy. During the previous year, all employees of the company have efficiently pursued both directions together.

PVI Insurance Corporation stated that its pre-tax profit reached 790 billion VND (34.3 million USD) last year, exceeding 22.4 percent of its plan. The new year begins in the context of the "new normal", and although the COVID still persists, insurance companies are still confident in the set development strategy.

Likewise, PVI has set a sustainable growth target with double-digit revenue growth, while retaining the leading position in the field of commercial and industrial insurance in the domestic market, and gradually extending out to the Southeast Asian market. The company is also self-assured about completing its target this year and becoming a high-ranking international insurer in Southeast Asia. Vietnamese management agencies are trying to complete the legal framework for the insurance business so that the market size will improve rapidly and contribute much more to the economy. Vietnam is a developing economy and contributes to a lot of the young population. However, the proportion of people participating in insurance is still very low at only 7% among more than 90 million people. Thus, the Vietnamese market has a lot of potential to develop the insurance sector in the next ten years.

The Fintech Market in Vietnam is likely to raise to 18 billion USD by 2024. Vietnam is one of the leaders among ASEAN in terms of the number of financings for FinTech, second only to Singapore. 93% of all venture investments in the country are directed at e-wallets and the e-money segment.

The total number of Fintech Companies has grown up to 97 since 2016, an 84.5% rise. Transaction volume has seen a 152.8% increase since 2016, with 29.5 million new Fintech users. Therefore, every second Vietnamese uses at least one FinTech service. The Vietnamese population's demand for digital services (transactions, payments, and wallets) is set to be a major factor for motor insurance players as they will have to come up with product offerings that suffice the requirement of digitally savvy consumers.

The Ministry of Finance says that the increase in non-life insurance was achieved despite the difficulties and challenges posed by the Covid-19 pandemic. Total insurance benefits payments were estimated to be $49.6 trillion in 2021, an increase of 1.68 percent over 2020.

At the end of 2021, the total assets of the insurance market were estimated at $71 trillion, an increase of 23.86 percent over 12 months previously.

Vietnamese non-life insurance market is forecasted to maintain double-digit growth. The insurance regulator says that total insurance premium revenue in 2022 is predicted at $253.7 trillion, a surge of 18.04 percent compared to 2021. Insurance benefits payments in 2022 are forecast at $58.3 trillion, up by 17.61 percent over 2020.

The Vietnam Motor Insurance Market is enhanced in nature in terms of market share. Some of the major key players operating lead the market. The market is consolidated due to the top companies hold the major share of the market. The Insurance market is likely to increase during the forecast period. Companies such as Bao Viet Holdings, PetroVietnam Insurance (PVI), Bao Minh Insurance Corporation, Post and Telecommunication Joint Stock Insurance Corporation (PTI), and Petrolimex Joint Stock Insurance Company (Pjico), among others have been profiled in the report.

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