Introduction

• Consistent Growth in the Motor Insurance Sector: The Vietnam Motor Insurance Market is projected to rise from an estimated USD 0.82 Billion in 2024 to nearly USD 1.18 Billion by 2032, registering a steady CAGR of around 5.1% during the forecast period of 2025 to 2032. This growth is fueled by increasing vehicle ownership and rising awareness of financial protection.
  
• Policy Digitization and Regulatory Support Boosting Market Penetration: The market is witnessing a shift toward digital platforms for policy issuance, renewals, and claims, supported by favorable government regulations and efforts to enhance road safety and compliance with mandatory insurance norms.
  
• Urbanization and Middle-Class Expansion Driving Demand: Vietnam’s expanding middle class and rapid urban development are contributing to higher vehicle sales, which in turn is escalating the demand for comprehensive motor insurance products, particularly among private vehicle owners and fleet operators.

Gap Analysis – Vietnam Motor Insurance Market

• Limited Digital Penetration: Despite increasing smartphone and internet usage, digital adoption in motor insurance distribution remains low, creating a gap in reaching tech-savvy and younger demographics.
  
• Underinsurance Among Vehicle Owners: A significant portion of Vietnam’s vehicle population is either uninsured or underinsured, especially in rural and semi-urban regions, pointing to a critical coverage gap.
  
• Low Awareness of Comprehensive Policies: Many vehicle owners still opt for basic third-party liability insurance due to limited awareness about the benefits of comprehensive coverage, leaving a gap in product education and value communication.
  
• Insufficient Claims Transparency: Claims processing in Vietnam often lacks real-time tracking and transparency, creating a gap in customer satisfaction and retention compared to global best practices.
  
• Distribution Channel Limitations: Traditional distribution networks, such as agents and branches, dominate the market. There is a clear opportunity gap in leveraging online aggregators, mobile apps, and digital partners for policy sales.
  
• Limited Use of Telematics and AI: Unlike more mature markets, usage-based insurance (UBI) and AI-driven risk assessments are not widely adopted in Vietnam, creating a technology integration gap that could improve pricing accuracy and loss prevention.
  
• Regulatory and Data Gaps: Lack of real-time vehicle and driving behavior databases restricts risk profiling and personalized offerings, showing a data infrastructure gap in the insurance value chain.
  
• Gap in Customer-Centric Product Innovation: Current product offerings are largely standardized. There’s a gap in modular, customizable insurance plans tailored to different vehicle usage patterns and demographics.

Market Segmentation in Vietnam Motor Insurance Market

1. By Insurance Type
1.1 Third-Party Liability Insurance
1.2 Comprehensive Motor Insurance
1.3 Collision Coverage
1.4 Personal Injury Protection
1.5 Others

2. By Vehicle Type
2.1 Passenger Cars
2.2 Commercial Vehicles
2.3 Two-Wheelers
2.4 Electric Vehicles

3. By Coverage Type
3.1 Liability Coverage
3.2 Collision Coverage
3.3 Comprehensive Coverage
3.4 Uninsured Motorist Coverage
3.5 Medical Payments Coverage

4. By Distribution Channel
4.1 Insurance Agents/Brokers
4.2 Banks
4.3 Direct Sales
4.4 Online Platforms
4.5 Others

5. By End User
5.1 Individual Customers
5.2 Corporate Customers

6. By Region – Global
6.1 Asia-Pacific
 6.1.1 Vietnam
 6.1.2 China
 6.1.3 India
 6.1.4 Japan
 6.1.5 South Korea
 6.1.6 Australia
 6.1.7 Rest of Asia-Pacific
6.2 North America
 6.2.1 United States
 6.2.2 Canada
6.3 Europe
 6.3.1 United Kingdom
 6.3.2 Germany
 6.3.3 France
 6.3.4 Italy
 6.3.5 Spain
 6.3.6 Rest of Europe
6.4 Latin America
 6.4.1 Brazil
 6.4.2 Mexico
 6.4.3 Rest of Latin America
6.5 Middle East and Africa
 6.5.1 Saudi Arabia
 6.5.2 United Arab Emirates
 6.5.3 South Africa
 6.5.4 Rest of Middle East and Africa

7. Key Players – Vietnam Motor Insurance Market
7.1 Bao Viet Insurance Corporation
7.2 Petrolimex Insurance Corporation (Pjico)
7.3 Bao Minh Insurance Corporation
7.4 PTI Insurance (Post and Telecommunication Joint Stock Insurance Corporation)
7.5 MIC – Military Insurance Corporation
7.6 VNI – Viet Nam National Reinsurance Corporation
7.7 Liberty Insurance Vietnam
7.8 BIDV Insurance Corporation (BIC)
7.9 PVI Insurance
7.10 HD Insurance
7.11 OPES Insurance
7.12 AIG Vietnam
7.13 AAA Assurance Corporation
7.14 Generali Vietnam
7.15 Manulife Vietnam (Auto-related coverage extensions)
7.16 Prudential Vietnam
7.17 Hanwha Life Vietnam
7.18 Samsung Vina Insurance
7.19 Others