Report

Bancassurance in Vietnam: A Journey of Recovery and Long-Term Growth Potential

• Bancassurance in Vietnam has experienced robust growth since 2014, following Circular 86/2014, which removed barriers for banks to act as insurance agents. Between 2014 and 2022, insurance premium revenue grew at a compound annual growth rate (CAGR) of 50%, boosting the contribution of service fee income from 7% to 29%. However, since 2023, negative incidents involving misleading advice and coercive insurance sales have triggered a crisis of confidence in the life insurance market.
• Starting in 2022, regulators tightened oversight of insurance operations with the amended Insurance Business Law (2023), Decree 46/2023, Circular 67/2023, and the revised Law on Credit Institutions (2024). These measures aim to enhance transparency, accountability among insurers and banks distributing products, and, most critically, restore customer trust.
• New life insurance gross writien premium in 3Q24 reached VND 5.9 trillion (+3% YoY), while 4Q24 recorded VND 6.5 trillion (-7% YoY), partly due to a 15% decline in the bancassurance channel after TCB terminated its partnership with Manulife in October 2024. Despite the loss of TCB-Manulife (estimated at 13% market share), 4Q24 revenue rose 10% quarter-over-quarter, signaling early recovery signs. New GWP from bancassurance channel stabilized in the second half of 2024 and grew modestly by 3% YoY in 2M25.
• Vietnam’s insurance penetration remains low, with life insurance at 1.3% of GDP and non-life at 0.7% in 2024, compared to 2.7% and 1.2%, respectively, for emerging Asian economies. This underscores significant growth potential, aligned with economic expansion and rising per capita income. The government targets insurance premium revenue of 3.3%-3.5% of GDP by 2030 and 18% life insurance participation by 2025, implying an annual growth rate of 20-25% through 2030
Provider
Viet Dragon Securities
Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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Analysts
Tung Do

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