Infrastructure boom fuels expansion of non-life insurance market

Entering 2026, the non-life insurance market is widely viewed as standing at the beginning of a new growth cycle driven by economic expansion.

According to macroeconomic forecasts, Vietnam is expected to maintain three key growth pillars, namely exports, foreign direct investment and public investment, especially in transport infrastructure, energy and industrial development.

FDI disbursement is projected to remain around $25 billion annually, focusing on industrial manufacturing, electronics, logistics and renewable energy sectors. These industries are generating substantial demand for property, engineering, liability and cargo insurance products.

Non-life insurance segment continued to account for the largest share of nearly 63 per cent in revenue structure in Q1

Public investment continues to serve as a major driver of the economy as the government accelerates the rollout of expressways, seaports, airports, energy infrastructure and urban development projects.

Large-scale projects are driving increasingly diverse insurance demand, ranging from construction and installation insurance, engineering and property coverage to liability insurance, business interruption and cargo insurance.

An example of rising insurance demand in industrial projects emerged on May 15, when VinFast Automobile Manufacturing Complex, BeeVN Insurance Brokerage and a consortium of nine insurers signed an agreement to implement an all-risks property insurance contract for the VinFast Haiphong Manufacturing Complex for 2026-2027.

The insurance programme has been implemented for many years and has now been renewed for a new term, reflecting the growing demand for asset protection at modern industrial complexes.

According to industry experts, large-scale insurance contracts such as the VinFast Haiphong programme demonstrate the significant untapped potential of the property and engineering insurance segment amid the continued expansion of industrial investment, infrastructure and high-tech manufacturing in Vietnam.

This is also considered one of the key growth drivers for the non-life insurance market going forward.

For non-life insurers, 2026 is seen as a period to accelerate the development of two core business lines: property and engineering insurance, and marine insurance – sectors viewed as having strong growth potential thanks to the recovery of infrastructure investment and import-export activities.

PTI said it would continue building a nationwide team of consultants specialising in corporate risk insurance solutions, while also expanding business through a project insurance bidding channel.

This channel is considered to offer large contract values, strong stability and alignment with the anticipated increase in basic infrastructure investment in the forthcoming period.

Meanwhile, Military Insurance Corporation (MIC) is entering an acceleration phase, focusing on digital transformation and deeper integration within the MB ecosystem.

An MIC representative emphasised that 2026 would mark a transition from consolidation to growth expansion, with priorities centred on improving operational efficiency and laying the foundation for a new development cycle.

Similarly, Petrolimex Insurance Corporation (PJICO) has set a target of total revenue of $234.9 million in 2026, including insurance premium revenue of $209.5 million, up around 8 per cent compared to 2025 results.

In addition to expanding its retail customer base for high-deductible motor physical damage insurance products, PJICO plans to strengthen distribution channels through its petrol station network, bancassurance partnerships and cooperation with car showrooms such as Toyota, Honda, Hyundai and VinFast.

According to the Insurance Association of Vietnam (IAV), economic growth continues to provide an important foundation for rising insurance demand.

The association expects the insurance industry to maintain positive momentum this year, with the non-life segment potentially sustaining double-digit growth.

Data for the first quarter of 2026 showed that the non-life insurance market maintained a positive growth trajectory. Preliminary consolidated reports submitted by insurers to the IAV showed that total original premium revenue across the market exceeded $984 million in Q1, up 13 per cent on-year.

Within the revenue structure, the non-life insurance segment continued to account for the largest share, representing nearly 63 per cent of total market revenue, equivalent to $616.9 million, up 12.9 per cent from the same period last year.

Notably, property and engineering insurance has emerged as one of the market’s strongest growth drivers. Revenue from this segment reached $262.6 million in Q1, accounting for nearly 27 per cent of the total market and surging 15.6 per cent on-year.

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