Vietnam Motor Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.81 Billion |
| Market Size (2029) | USD 1.02 Billion |
| CAGR (2024 - 2029) | 4.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vietnam Motor Insurance Market Analysis
The Vietnam Motor Insurance Market size in terms of gross written premiums value is expected to grow from USD 0.81 billion in 2024 to USD 1.02 billion by 2029, at a CAGR of 4.5% during the forecast period (2024-2029).
The motor insurance market in Vietnam has been experiencing rapid expansion due to the rising number of vehicles on the road and the mandatory insurance coverage requirement. Motor insurance protects against damages, injuries, and liabilities from vehicle accidents.
The regulatory framework is another important factor that shapes the Vietnamese motor insurance industry. The Vietnamese government has implemented compulsory motor insurance, known as "Civil Liability Insurance for Motor Vehicle Owners" or "Motor Third Party Liability Insurance" (MTPL). All motor vehicle owners are legally required to have this insurance, which provides coverage for third-party bodily injury or property damage. The minimum coverage for MTPL is regulated by the government, and the minimum coverage limits are VND 50 million for death or injury per person, VND 100 million for death or injury per accident, and up to VND 50 million for property damage. Vietnam follows a no-fault liability system for motor insurance. This means that regardless of who is at fault in an accident, insurance companies are obligated to provide compensation to the victims or their beneficiaries.
Overall, the motor insurance market in Vietnam is expected to continue growing, driven by factors such as urbanization, increasing vehicle ownership, and the government's focus on road safety and risk management.
Vietnam Motor Insurance Market Trends
Surge in Vehicle Ownership Generating Major Demand in the Market
- The surge in vehicle ownership in Vietnam has been a significant driver of demand for motor insurance. As the country's economy has grown and urbanization has increased, more individuals and businesses have acquired vehicles for personal and commercial use. This rise in vehicle ownership has led to an expansion of the motor insurance market, as vehicle owners are required to obtain insurance coverage to legally operate their vehicles on the roads. With more vehicles on the roads, the potential for accidents, theft, and other risks has also increased. As a result, there is a greater awareness among vehicle owners of the importance of protecting their assets and mitigating financial risks through insurance. This heightened awareness, coupled with the mandatory requirement for motor insurance, has driven up the demand for insurance coverage in Vietnam.
- Furthermore, the surge in vehicle ownership has not only increased the number of individual policyholders. It has also created opportunities for insurers to offer specialized insurance products for commercial vehicles, fleets, and other specific segments of the market. This diversification of insurance offerings further contributes to the overall growth and expansion of the motor insurance market in Vietnam.
Digital Transformation Boosting the Market Demand
- The motor insurance market in Vietnam is experiencing a notable shift toward digitalization, driven by technological advancements and changing consumer preferences. Insurers increasingly leverage digital channels, such as online platforms and mobile apps, to distribute motor insurance products. These digital platforms allow consumers to research, compare, and purchase insurance policies conveniently from the comfort of their homes or mobile devices.
- According to the Vietnam Insurance Association (IAV), the motor insurance sector invests heavily in digital advertising and online sales channels to connect with younger, tech-savvy customers who prefer online shopping. The rising e-commerce sector in Vietnam is also fueling the shift towards digitalization in the motor insurance market. Insurance companies are collaborating with these e-commerce platforms to offer motor insurance products through their online channels. According to a report by Fitch Ratings, the growth of e-commerce and mobile channels is expected to accelerate the adoption of digital insurance in Vietnam, with an estimated 90% of new insurance policies expected to be sold through digital channels by the coming year.
Vietnam Motor Insurance Industry Overview
The Vietnamese motor insurance market is fragmented. The competitive landscape of the market is characterized by intense competition among domestic and foreign insurers. Key players are vying for market share based on pricing, coverage options, customer service, and distribution channels. Some of the major players in the motor insurance market in Vietnam include Bao Viet Insurance Corporation, PVI Insurance Corporation, Bao Minh Insurance Corporation, BIDV Insurance Corporation (BIC), and Liberty Insurance Vietnam.
Vietnam Motor Insurance Market Leaders
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Bao Viet Holdings
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PetroVietnam Insurance (PVI)
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Bao Minh Insurance Corporation
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BIDV Insurance Corporation (BIC)
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Liberty Insurance Vietnam
*Disclaimer: Major Players sorted in no particular order
Vietnam Motor Insurance Market News
- December 2023: Cathay Insurance Vietnam joined hands with SAWAD to unveil an all-inclusive "Dual Finance" initiative. This program empowers customers to seek financial assistance while securing mandatory insurance coverage seamlessly. To cater to its clientele's diverse needs, Cathay has set to roll out a personal injury insurance scheme in December, complementing its existing financial support and automobile insurance offerings.
- November 2023: In a significant move, Vietnam joined the Association of Southeast Asian Nations (ASEAN) Compulsory Motor Insurance Scheme (ACMI). Under this scheme, all motor vehicles, while in transit or en route to any ASEAN member state, must have mandatory third-party motor liability insurance.
Vietnam Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Vehicle Ownership
4.2.2 Mandatory Motor Insurance Rules by Government
4.3 Market Restraints
4.3.1 Rising Fraudulent Claims
4.4 Market Opportunities
4.4.1 Collaborations with Automotive Dealerships Provide Motor Insurance Companies to Increase Market Penetration
4.4.2 Adoption of Digital Technologies and Insurtech Solutions to Enhance Customer Engagement,
4.5 Value Chain Analysis
4.6 Industry Attractiveness: Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
4.7 Insights into Technological Advancements in the Industry
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Policy Type
5.1.1 Compulsory Third-Party Liability Insurance (CTPL)
5.1.2 Comprehensive Insurance
5.2 By Vehicle Type
5.2.1 Passenger Vehicles
5.2.2 Commercial Vehicles
5.3 By Distribution Channel
5.3.1 Agents
5.3.2 Brokers
5.3.3 Banks
5.3.4 Online
5.3.5 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Market Concetration Overview
6.2 Company Profiles
6.2.1 Bao Viet Holdings
6.2.2 PetroVietnam Insurance (PVI)
6.2.3 Bao Minh Insurance Corporation
6.2.4 Liberty Insurance Vietnam
6.2.5 Petrolimex Joint Stock Insurance Company (Pjico)
6.2.6 AAA Assurance Corporation
6.2.7 BIDV Insurance Corporation
6.2.8 Fubon Insurance Company
6.2.9 Phu Hung Assurance Corporation
6.2.10 Samsung Vina Insurance Company*
- *List Not Exhaustive
7. FUTURE MARKET TRENDS
8. DISCLAIMER AND ABOUT US
Vietnam Motor Insurance Industry Segmentation
The motor insurance market refers to the sector of the insurance industry that provides coverage for vehicles against risks such as accidents, theft, and damage. It encompasses both compulsory third-party liability insurance (CTPL) and optional comprehensive insurance policies for automobiles and motorcycles. The Vietnamese motor insurance market is segmented by policy type, vehicle type, and distribution channel. By policy type, the market is segmented into compulsory third-party liability insurance (CTPL) and comprehensive insurance. By vehicle type, the market is segmented into passenger vehicles and commercial vehicles. By distribution channel, the market is segmented into agents, brokers, banks, online, and other distribution channels (credit institutions). The report offers the market sizes and forecasts for the Vietnamese motor insurance market in terms of value (USD) for all the above segments.
| By Policy Type | |
| Compulsory Third-Party Liability Insurance (CTPL) | |
| Comprehensive Insurance |
| By Vehicle Type | |
| Passenger Vehicles | |
| Commercial Vehicles |
| By Distribution Channel | |
| Agents | |
| Brokers | |
| Banks | |
| Online | |
| Other Distribution Channels |
Vietnam Motor Insurance Market Research FAQs
How big is the Vietnam Motor Insurance Market?
The Vietnam Motor Insurance Market size is expected to reach USD 0.81 billion in 2024 and grow at a CAGR of 4.5% to reach USD 1.02 billion by 2029.
What is the current Vietnam Motor Insurance Market size?
In 2024, the Vietnam Motor Insurance Market size is expected to reach USD 0.81 billion.
Who are the key players in Vietnam Motor Insurance Market?
Bao Viet Holdings, PetroVietnam Insurance (PVI), Bao Minh Insurance Corporation, BIDV Insurance Corporation (BIC) and Liberty Insurance Vietnam are the major companies operating in the Vietnam Motor Insurance Market.
What years does this Vietnam Motor Insurance Market cover, and what was the market size in 2023?
In 2023, the Vietnam Motor Insurance Market size was estimated at USD 0.77 billion. The report covers the Vietnam Motor Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Motor Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key trends of Vietnam Motor Insurance Market?
The key trends of Vietnam Motor Insurance Market are a) Increasing disposable income leading to more vehicle purchases b) Regulatory push for mandatory insurance coverage c) Growing awareness of the need for comprehensive insurance d) Insurance companies offering innovative features like cashless claims and roadside assistance e) Competitive landscape with companies offering tailored packages and customer-centric services
Vietnam Motor Insurance Industry Report
The Vietnam motor insurance market is experiencing robust growth, driven by increasing vehicle ownership and stringent regulatory mandates requiring motor insurance. Segmented by insurance type into third-party liability and comprehensive insurance, it caters to a diverse range of customer needs from basic legal coverage to extensive damage and theft protection. Distribution channels include agents, brokers, banks, and increasingly, online platforms, reflecting a shift towards digitalization in consumer purchasing behavior. The competitive landscape among motor insurance companies in Vietnam is vibrant, with providers differentiating through innovative offerings like cashless claims, enhanced roadside assistance, and depreciation coverage. These features not only meet the evolving needs of vehicle owners but also enhance customer experience and satisfaction, propelling the market forward. Fueled by economic growth, urbanization, and enhanced consumer awareness of the financial risks associated with vehicle ownership and operation, the motor insurance sector in Vietnam is poised for continued expansion. For detailed statistics on market share, size, and revenue growth rate, refer to Mordor Intelligenceā¢ Industry Reports, which include a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
