ASEAN report highlights Vietnam's growth potential through insurance

The report, "Beyond Coverage: The Social and Economic Impact of Insurance in ASEAN", released by Prudential in September 2025, explores how expanding non-life insurance (inclusive of health insurance) and life insurance across six ASEAN countries—Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam (ASEAN-6)—can transform economies and lives.

Insurance as an economic engine

According to the study, if non-life insurance coverage across ASEAN-6 rises 50% by 2050, GDP per capita could increase by up to 3.1% and total GDP by 2.6%. For life insurance, the effect is even stronger: a 50% rise in penetration could result in GDP per capita growth of 5.1% and total GDP growth of 4.4%.

"These are not abstract projections," the report notes. "They translate into billions of dollars in additional economic activity, stronger household balance sheets, and more resilient businesses."

The opportunity is substantial for Vietnam, where total insurance penetration is around 3% of GDP, significantly lower than the global average of 6.7%. A 50% expansion in non-life coverage alone could lift GDP per capita by 2.5%. A 200% expansion would raise that to 10.5% GDP growth, or $125 billion.

Vietnam's rapid economic growth, expanding middle class, and increasing exposure to climate and health risks make insurance a core pillar of long-term resilience. As the country moves toward higher-value growth and deeper capital-market integration, financial protection becomes not only a household need but also a national objective.

Steven Chan, Group Chief Government Relations and Policy Officer, Prudential plc. Photo courtesy of Prudential

According to Steven Chan, Vietnam's insurance sector currently stands at a pivotal moment. With regulatory reforms, strategic initiatives, and its recent upgrade to the "emerging market" status, the country is poised to rise from its low insurance penetration rate.

"According to the study, it shows that a modest rise in insurance coverage of 50% could add up to $30 billion more in output by 2050. For us, now is the time to turn ambition into actions, such as investing in diversified portfolios, developing an interoperable health-data system, and creating enhanced public-private partnerships," said Chan.

Steven Chan (2nd, R) and fellow experts discuss "Insurance as an Economic Growth Engine and a Catalyst for Consumer Trust" at the U.K.-Vietnam Business Summit 2025. Photo courtesy of Prudential

Insurance and national development goals

The Prudential report links insurance directly to progress on multiple UN Sustainable Development Goals. Life and health products contribute to SDG 3 (Good Health and Well-being), while risk-mitigation products support SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure). Climate-risk protection and responsible investments help advance SDG 13 (Climate Action).

In emerging ASEAN markets, insurance has also been found to reduce poverty rates, keep children in school, and improve health outcomes.

"Inclusive insurance systems elevate entire communities, not just policyholders," the report wrote.

In Vietnam, according to the life insurance industry development strategy, by 2030, the country aims to have 18% of the population participating in this type of insurance.