Vietnam’s rapid economic growth is reshaping the country’s insurance and reinsurance industries, leading to higher premium volumes and more complex risks. As infrastructure investment expands and climate threats intensify, local insurers are increasingly relying on sophisticated reinsurance structures and international partnerships to strengthen the market. We speak to PVI Insurance’s Mr Pham Anh Duc and HDI Global’s Dr Edgar Puls.
The current pace of economic growth is transforming Vietnam’s insurance and reinsurance industries. As infrastructure projects increase, industrial capacity expands, and climate risks intensify, the role of reinsurance is becoming increasingly important to boost market resilience.
PVI Insurance’s CEO Pham Anh Duc told Asia Insurance Review that the economic momentum of the Southeast Asian country is reshaping market dynamics and deepening integration into the global reinsurance ecosystem.
Mr Duc said the risk profile in Vietnam is changing owing to the country’s economic trajectory, which has also led to rising premium volumes.
“Vietnam’s economic growth is expanding both the scale and complexity of insured risks, particularly in infrastructure, energy, manufacturing, logistics, and real estate. Insurers are underwriting significantly larger commercial limits, which drives stronger demand for reinsurance capacity and technical expertise,” he said.
He highlighted that at PVI Insurance, inward and outward reinsurance have grown alongside primary insurance expansion.
“Rising household incomes are also lifting retail penetration in motor, property, and healthcare. Overall, growth is not merely increasing premium volume but fundamentally reshaping the nature of risks transferred to reinsurers,” he said.
This change reflects Vietnam’s economic transformation towards higher-value industrial and infrastructure development, where larger insured sums require more sophisticated reinsurance structures and international capacity support, he said.
Climate risks and protection gaps
Mr Duc said that protection levels have not kept pace with escalating climate exposure, even as catastrophe
reinsurance programmes have improved.
“Vietnam has made significant strides in catastrophe reinsurance programmes. However, protection levels are not yet fully aligned with the pace of rising exposures to typhoons, floods, and climate-driven losses,” he said.
He highlighted structural vulnerabilities in programme design. “Retentions are often high and coverage layers relatively thin, leaving material protection gaps. A significant portion of catastrophe risk is transferred offshore, while government post-event support still plays a major role,” he said.
He said that PVI Insurance prioritises strengthening catastrophe structures, “As climate volatility increases, Vietnam’s reinsurance framework will require deeper capacity and more robust risk layering,” he added.
Structural weaknesses
Mr Duc said that Vietnam’s reinsurance market remains relatively small despite progress. “Vietnam’s reinsurance market is still developing, and its current structure is small and concentrated. Domestic capacity is limited, capital bases are still developing, and diversification is constrained by the dominance of property, motor, and healthcare lines,” he said.
He also highlighted data and modelling limitations; “Data quality and catastrophe modelling are uneven, affecting pricing accuracy and accumulation control. Fragmentation among cedants also leads to inconsistent underwriting standards and risk governance.”
Still, reliance on international capacity has supported market development, “While the market continues to rely on international capacity for large loss absorption, these international partnerships provide an important platform for Vietnam’s ongoing integration into the global reinsurance ecosystem,” he said.
Dependence on international capacity
Vietnam benefits significantly from partnerships with global reinsurers, though this reliance brings sensitivity to global cycles. Mr Duc said, “Vietnam benefits greatly from strong partnerships with leading international reinsurers, gaining access to advanced underwriting expertise and modelling, global capital, and diversified capacity. But it can also introduce sensitivity to global market cycles.”
He added, “Over time, strengthening domestic and regional capacity will help reduce exposure to global reinsurance cycles and improve market resilience.”
He noted that regional hubs, including Singapore and Hong Kong, play a pivotal role in connecting Vietnamese insurers to global capacity, “Insurance and reinsurance brokers play a central role in Vietnam, acting as key intermediaries between local insurers and global reinsurance markets.”
Demanding outlook
Looking ahead, Mr Duc described the medium-term outlook for Vietnam’s insurance space as constructive but challenging, “The medium-term outlook is positive but demanding. Economic growth, rising insurance penetration, and infrastructure investment will continue to expand reinsurance demand,” he noted, adding that climate risks and regulatory tightening will test market resilience.
He added, “Market developments show that at leading insurers such as PVI Insurance, reinsurance has become a core contributor to overall profitability and portfolio stability, highlighting its growing strategic importance.”
From an international perspective, HDI Global’s CEO Dr Edgar Puls underscored the importance of sustainable risk structures. “Vietnam’s rapid growth requires access not only to capital but to global technical expertise, modelling capabilities, and underwriting excellence,” he said.
Dr Puls said that collaboration between PVI and HDI Global strengthens the sector’s resilience. Over the medium term, he expects deeper integration into the regional reinsurance value chain, alongside more sophisticated treaty structures and increased use of parametric and alternative risk solutions.
Dr Puls expressed confidence in PVI’s trajectory, “PVI’s consistent achievement of major milestones, like reaching $1bn in premiums in 2025, its leadership in Vietnam’s P&C market, and its growing regional presence demonstrate that the company is on the right path.”
Source: Asia Insurance Review