Report Overview

The rising middle class with increased vehicle ownership, government regulations mandating motor insurance, heightened awareness of road safety, and the expansion of the automotive industry, all contribute to a growing demand for motor insurance coverage thereby fueling the expansion of the Vietnam Motor Insurance Market during the forecast period between 2023 and 2029.

Vietnam Motor Insurance Market – Industry Trends & Forecast Report, 2029

Vietnam motor insurance market size was estimated at USD 4.87 billion in 2022. During the forecast period between 2023 and 2029, the size of Vietnam motor insurance market is projected to grow at a CAGR of 8.9% reaching a value of USD 8.85 billion by 2029. The growth of the Vietnam motor insurance market can be attributed to several key factors. The expanding middle class and rising income levels have led to an increased demand for automobiles, consequently driving the need for motor insurance. Government regulations mandating motor insurance coverage have bolstered market growth. The country's improving road infrastructure and growing urbanization have also resulted in higher vehicle ownership and, subsequently, greater insurance requirements. Further, the rising awareness of the importance of insurance, coupled with innovative digital distribution channels, has made it easier for consumers to access and purchase motor insurance policies, further propelling market expansion.

Vietnam Motor Insurance Market - Overview

Motor insurance, also known as auto or car insurance, is a financial product that provides protection for vehicle owners against potential financial losses resulting from accidents, theft, or damage to their vehicles. It typically covers both physical damage to the insured vehicle and liability for injuries or property damage caused to others in accidents. Motor insurance policies vary in coverage levels and cost, offering options such as comprehensive, third-party, or collision coverage. Mandatory in many countries, motor insurance provides peace of mind to vehicle owners while ensuring responsible financial responsibility in the event of unexpected incidents on the road.

Growth Drivers

Rapid Urbanization across Vietnam

Vietnam motor insurance market is experiencing a significant boost due to the country's rapid urbanization. As more Vietnamese citizens migrate to cities and towns, there is a corresponding increase in vehicle ownership and usage. This urban migration has led to a surge in demand for motor insurance policies, driven by the need for coverage against accidents and theft. Also, the government's efforts to improve road safety and enforce insurance regulations have further propelled the market's growth. In this urbanizing landscape, the Vietnam motor insurance market is poised for sustained expansion, offering many opportunities for insurers and providers.

Restraints

Limited Integration of Data and Analytics

Vietnam motor insurance market faces a significant restraint due to the limited integration of data and analytics. Insurers struggle to leverage advanced data analytics to accurately assess risk and set premiums. Inadequate access to real-time data, including driver behavior and accident statistics, hampers their ability to make informed decisions. This constraint not only affects pricing accuracy but also impedes the development of personalized insurance products, hindering market competitiveness. To thrive in the evolving insurance landscape, Vietnam's motor insurance industry must prioritize investments in data infrastructure and analytics capabilities to better serve its customers and remain competitive.

Vietnam Motor Insurance Market

Segmental Coverage

Vietnam Motor Insurance Market – By Policy Type

Based on policy type, Vietnam motor insurance market is divided into Third-party Liability Insurance, Comprehensive Coverage, and Collision Coverage segments. Comprehensive coverage typically stands out as the largest segment. This is because it offers the broadest protection, encompassing not only third-party liability but also coverage for damage to the insured vehicle due to various factors such as accidents, theft, fire, and natural disasters. Comprehensive coverage is often the preferred choice for those seeking extensive protection for their vehicles, making it a significant driver of the motor insurance market in Vietnam.

Vietnam Motor Insurance Market – By Vehicle Type

By vehicle type, Vietnam motor insurance market is split into Passenger Vehicles and Commercial Vehicles segments. The passenger vehicles segment typically holds a substantial share of the market. The segment encompasses insurance coverage for cars, motorcycles, and other personal vehicles owned by individuals. Given Vietnam's growing middle-class population and increasing urbanization, the demand for insurance for personal vehicles remains robust, contributing significantly to the overall motor insurance market. While the commercial vehicles segment also plays a vital role, the passenger vehicles segment remains the larger and more prominent sector within the Vietnamese motor insurance landscape.

Vietnam Motor Insurance Market – By Distribution Channel

By distribution channel, Vietnam motor insurance market is divided into Insurance Agents/Brokers, Direct Response, and Bank segments. The insurance agents/brokers segment is the largest segment in the Vietnam motor insurance market. This segment encompasses a significant portion of the market, indicating that a substantial number of motor insurance policies in Vietnam are sold and managed through insurance agents and brokers. This channel likely provides customers with a personalized and consultative approach to insurance purchases and claims processing. It reflects the prominent role played by intermediaries in facilitating motor insurance transactions in Vietnam, highlighting the importance of agent and broker networks in the distribution and servicing of motor insurance policies in the country.

Vietnam Motor Insurance Market – By Region

Geographically, Vietnam motor insurance market is divided into Northern Vietnam, Central Vietnam, and Southern Vietnam. The Southern Vietnam is the largest segment in the Vietnam motor insurance market. This region comprises the most significant portion of the market, encompassing major cities like Ho Chi Minh City and surrounding provinces. With a high population density and a growing number of vehicles on the road, Southern Vietnam presents a substantial demand for motor insurance products and services. Insurance companies often focus their efforts on this region due to its economic activity and urbanization, making it a key driver of the overall motor insurance industry in Vietnam.

Competitive Landscape

Major players in the Vietnam motor insurance market include Bao Viet Holdings, Liberty Insurance Vietnam, BIDV Insurance Corporation (BIC), BIDV Insurance Corporation (BIC), PetroVietnam Insurance (PVI), Bao Minh Insurance Corporation, Post and Telecommunication Joint Stock Insurance Corporation (PTI), and Petrolimex Joint Stock Insurance Company (Pjico). To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In November 2022 - OPES, a subsidiary of Vietnam Prosperity Joint-Stock Commercial Bank (VP Bank), formed a partnership with IMS, to offer O.Car, an app-based telematics insurance solution. The app will use IMS One App SDK and IMS Wedge technologies to evaluate driving styles, and leverage data to offer insurance solutions to OPES customers.

• In 2022 - PVI (Petro Vietnam Insurance Company) recorded 69% profit after the first six months of 2022. Additionally, PVI Insurance ranked 66th among 500 private enterprises, an increase of 9 places from the 2020s, and 133rd among 500 enterprises of all sectors, an increase of 20 places from the 2020s, with the most profit, according to the PROFIT500 ranking.

Scope of the Report

Attributes	Details
Years Considered	Historical Data – 2019–2022
	Base Year – 2022
	Estimated Year – 2023
	Forecast Period – 2023–2029
Facts Covered	Revenue in USD Million
Market Coverage	Northern Vietnam, Central Vietnam, Southern Vietnam
Product/ Service Segmentation	Policy Type, Vehicle Type, Distribution Channel, Region
Key Players	Bao Viet Holdings, Liberty Insurance Vietnam, BIDV Insurance Corporation (BIC), BIDV Insurance Corporation (BIC), PetroVietnam Insurance (PVI), Bao Minh Insurance Corporation, Post and Telecommunication Joint Stock Insurance Corporation (PTI), Petrolimex Joint Stock Insurance Company (Pjico)

 

 

By Policy Type

• Third-party Liability Insurance

• Comprehensive Coverage

• Collision Coverage

By Vehicle Type

• Passenger Vehicles

• Commercial Vehicles

By Distribution Channel

• Insurance Agents/Brokers

• Direct Response

• Banks

By Region

• Northern Vietnam

• Central Vietnam

• Southern Vietnam

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  Vietnam Motor Insurance Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing vehicle ownership
         2. Growing awareness
      2. Restraints
         1. Price sensitivity
         2. Low Penetration of comprehensive insurance
      3. Opportunities
         1. Expanding investment in the fintech market
         2. Expansion into new markets
      4. Challenges
         1. Competition
         2. Economic uncertainty
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4.  Vietnam Motor Insurance Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share and Forecast
      1. By Policy Type
         1. Third-party Liability Insurance
         2. Comprehensive Coverage
         3. Collision Coverage
         4. Others
      2. By Vehicle Type
         1. Passenger Vehicles
         2. Commercial Vehicles
         3. Others
      3. By Distribution Channel
         1. Insurance Agents/Brokers
         2. Direct Response
         3. Banks
         4. Others  
      4. By Region
         1. Northern Vietnam
         2. Central Vietnam
         3. Southern Vietnam
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Vietnam Motor Insurance Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of COVID-19 on Vietnam Motor Insurance Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Bao Viet Holdings
   2. Liberty Insurance Vietnam
   3. BIDV Insurance Corporation (BIC)
   4. BIDV Insurance Corporation (BIC)
   5. PetroVietnam Insurance (PVI)
   6. Bao Minh Insurance Corporation
   7. Post and Telecommunication Joint Stock Insurance Corporation (PTI)
   8. Petrolimex Joint Stock Insurance Company (Pjico)
   9. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.    Qualitative Research
      1.  Primary & Secondary Research
   2.    Quantitative Research
   3.    Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.    Breakdown of Primary Research Respondents, By Region
   5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

 

List of Figures

 

Figure 1       Vietnam Motor Insurance Segmentation

Figure 2       Vietnam Motor Insurance Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Vietnam Motor Insurance Market Size, By Value (USD Million), 2019–2029

Figure 5       Vietnam Motor Insurance Market Share, By Policy Type, By Value, 2019–2029

Figure 6       Vietnam Motor Insurance Market Share, By Vehicle Type, By Value, 2019–2029

Figure 7       Vietnam Motor Insurance Market Share, By Distribution Channel, By Value, 2019–2029

Figure 8       Vietnam Motor Insurance Market Share, By Region, By Value, 2019–2029

 

 

List of Tables

 

Table 1        Vietnam Motor Insurance Market Size, By Value (USD Million), 2019–2029

Table 2        Vietnam Motor Insurance Market Share, By Policy Type, By Value, 2019–2029

Table 3        Vietnam Motor Insurance Market Share, By Vehicle Type, By Value, 2019–2029

Table 4        Vietnam Motor Insurance Market Share, By Distribution Channel, By Value, 2019–2029

Table 5        Vietnam Motor Insurance Market Share, By Region, By Value, 2019–2029

Table 6        Bao Viet Holdings Company Overview

Table 7        Bao Viet Holdings Financial Overview

Table 8        Liberty Insurance Vietnam Company Overview

Table 9        Liberty Insurance Vietnam Financial Overview

Table 10      BIDV Insurance Corporation (BIC) Company Overview

Table 11      BIDV Insurance Corporation (BIC) Financial Overview

Table 12      BIDV Insurance Corporation (BIC) Company Overview

Table 13      BIDV Insurance Corporation (BIC) Financial Overview

Table 14      PetroVietnam Insurance (PVI) Company Overview

Table 15      PetroVietnam Insurance (PVI) Financial Overview

Table 16      Bao Minh Insurance Corporation Company Overview

Table 17      Bao Minh Insurance Corporation Financial Overview

Table 18      Post and Telecommunication Joint Stock Insurance Corporation (PTI) Company Overview

Table 19      Post and Telecommunication Joint Stock Insurance Corporation (PTI) Financial Overview

Table 20      Petrolimex Joint Stock Insurance Company (Pjico) Company Overview

Table 21      Petrolimex Joint Stock Insurance Company (Pjico) Financial Overview