Vietnam Motor Insurance Market Size

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.