Insurance: A driving force for GDP growth and a new boost for Vietnam's economy

Insurance - engine of economic growth

Within the framework of the UK-Vietnam Business Summit 2025, which recently took place, Prudential Group released the report “Beyond Coverage: The Social and Economic Impact of Insurance in ASEAN” analyzing the impact of expanding non-life insurance coverage (including health insurance) and life insurance in six ASEAN markets including Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.

The study results show that if non-life insurance coverage in the ASEAN countries mentioned above increases by 50% by 2050, GDP per capita could increase by up to 3.1% and total GDP by 2.6%. For life insurance, the impact is even stronger: the corresponding increases are 5.1% and 4.4%, respectively.

“ These are not just simulated numbers but reflect billions of dollars in new economic value, increased household financial health and better business resilience ,” the report stressed.

*Mr. Steven Chan - Director of Government Relations and Policy, Prudential Group, presented the Beyond Coverage report within the framework of the UK - Vietnam Business Summit 2025.*

For Vietnam, where the total insurance market size is equivalent to about 3% of GDP, much lower than the global average of 6.7%, there is still a lot of room for growth. If non-life insurance coverage increases by 50%, GDP per capita could increase by 2.5%. In the case of higher growth, a 200% expansion could contribute up to 10.5% of GDP, equivalent to about 125 billion USD.

Rising incomes, expanding middle classes and rising health and climate risks make insurance a pillar of sustainable development strategies and economic resilience.

Mr. Steven Chan - Director of Government Relations and Policy of Prudential Group, commented: “Vietnam's insurance industry is facing a pivotal moment. With policy reforms and new steps on the financial and securities market map, Vietnam has the opportunity to break out from a modest insurance coverage base. According to research, if the insurance participation rate is only increased by 50%, Vietnam can add about 30 billion USD in economic value by 2050. This is the time to turn vision into action, including diversifying investment portfolios, developing an interconnected health data system and strengthening public-private partnerships.”

*Experts participate in discussions within the framework of the UK-Vietnam Business Summit 2025.*

Contribute to national development goals

The report also points out the links between insurance and many of the United Nations Sustainable Development Goals (SDGs): Health and life insurance supports SDG 3 (good health and well-being); risk management products promote SDG 8 and SDG 9 (economic growth, industry and innovation); climate risk insurance and sustainable investments contribute to SDG 13 (Climate action).

In emerging ASEAN markets, insurance has also been shown to reduce poverty, increase school attendance and improve public health outcomes.

In Vietnam, according to the insurance market development strategy, the goal by 2030 is to have 18% of the population participating in life insurance.

The Beyond Coverage report also emphasizes that insurance is not just a personal expense, but “the infrastructure of sustainable development.”

In the context of Vietnam's economy maintaining strong growth momentum but facing many fluctuations, expanding insurance coverage is both socially meaningful and an inevitable requirement of the economic development strategy.

Source: https://congthuong.vn/bao-hiem-dong-luc-tang-truong-gdp-va-suc-bat-moi-cho-kinh-te-viet-nam-429192.html