Insurance experiencing a renewed expansion phase
Vietnam's Banks and Insurers Embrace Technology and Regulatory Changes
Vietnam's banking and insurance sectors are undergoing significant transformations, adapting to regulatory changes and leveraging technology to improve operational efficiency and customer experiences.
Regulatory Sandbox for Fintech Innovation
As of July 1, 2025, Vietnam implemented Decree 94/2025/ND-CP, establishing a Regulatory Sandbox supervised by the State Bank of Vietnam (SBV). This framework allows banks and fintech companies to test innovative financial solutions under a controlled environment for up to two years.
Advanced Data Analytics and AI for Insurance
Insurers are embracing advanced analytics platforms like SAS Viya to transform their risk modeling, underwriting, and decision-making processes. These tools provide dynamic risk modeling, real-time AI-driven decision intelligence, and enhanced organizational agility, improving business efficiency and customer engagement.
Enhanced Governance and Transparency through Regulatory Updates
The 2025 amendments to Vietnam’s Enterprise Law introduce stricter requirements on beneficial ownership disclosure and corporate governance. Financial institutions, including insurers, must now comply with enhanced reporting and transparency standards aligned with international anti-money laundering frameworks.
Insurers' Key Adaptations
- AIA Vietnam is using AI to automate claims assessments.
- Chubb Life is withdrawing certain investment-linked plans, term life insurance, and hybrid offerings.
- Dai-ichi Life introduced Dai-ichi ON platform for customers to select insurance solutions through digital channels.
- Hanwha Life Vietnam launched new insurance products aligned with revised regulatory requirements.
- Bao Viet Life's MyBVLife platform allows policyholders to manage contracts and perform transactions online.
- Manulife rolled out the M-PS system for immediate customer feedback after every transaction.
Financial Performance
Despite these changes, the insurance sector remains robust. The non-life segment showed more robust growth, generating an estimated $1.72 billion in revenue, up 10.8% year-on-year. Total claim payouts as of the end of the second quarter stood at $1.66 billion, rising 10% year-on-year. The total premium revenue for the second quarter of 2025 was estimated at $2.36 billion, up 5.4% year-on-year. Accumulated revenue for the first six months of 2025 reached approximately $4.59 billion, reflecting a 5% increase over the same period in 2024.
Insurers reinvested approximately $36.06 billion back into the economy, marking an increase of 11.8%. The total assets of the insurance market were estimated at nearly $42.37 billion, up 10.9% compared to the same period last year. Life insurance posted a more modest increase of 1.9% to reach $2.87 billion.
Looking Ahead
From July 1, investment-linked insurance products will be required to include only death and total permanent disability benefits. Supplementary benefits will be issued separately. Several Vietnamese banks are planning to establish insurance subsidiaries to diversify revenue streams and complete their financial ecosystems. The recovery of the insurance market is being driven by persistent efforts from insurers and related institutions.
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Technology plays a crucial role in the ongoing transformations of Vietnam's business sector, particularly in the finance and insurance industries. Banks and fintech companies are using the Regulatory Sandbox, introduced by Decree 94/2025/ND-CP, to test innovative financial solutions, while insurers are employing advanced analytics platforms like SAS Viya to streamline their operations and enhance customer engagement.
