Vietnam Private Health Insurance Market - Industry Trends and Forecast to 2029

Market Analysis and Size

A health insurance policy consists of several types of features and benefits. It provides financial coverage to policyholders against certain treatments. It also offers advantages including cashless hospitalization, coverage of pre and post-hospitalization reimbursement and various add-ons.

In the health insurance plan, several types of coverages are available including cashless and reimbursement claims. Cashless benefit is available when the policyholder takes treatment from the network hospitals of the insurance company. If the policyholder takes treatment from the hospitals which are not in the list network, in that case, the policyholder meets all the medical expenses and then claims for reimbursement in the insurance company by submitting all the medical bills. This private health insurance provides financial support to the policyholder as it covers all the medical expenses when the policyholder is hospitalized for the treatment.

Data Bridge Market Research analyses that the Vietnam private health insurance market is expected to reach the value of USD 1,516.75 million by the year 2029, at a CAGR of 1.4% during the forecast period. “Individual Health Insurance” accounts for the most prominent type segment in the respective market owing to rise in private health insurance. The market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and climate chain scenario.

Market Definition

Health insurance provides coverage for all types of surgical expenses as well as medical treatment incurred from the illness or injury. Health insurance applies to a comprehensive or limited range of medical services providing the coverage of full or partial costs of specific services. Health insurance provides financial support to the policyholder as it covers all the medical expenses when the policyholder is hospitalized for the treatment. Health insurance also covers pre as well as post-hospitalization expenses.

Regulatory Framework

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10; The National Assembly promulgates the Law on Health Insurance.

1. This Law provides the health insurance regime and policies, including participants, premium rates, responsibilities and methods of payment of health insurance premiums; health insurance cards; eligible health insurance beneficiaries; medical care for the insured; payment of costs of medical care covered by health insurance; health insurance fund; and rights and responsibilities of parties involved in health insurance.

2. This Law applies to domestic and foreign organizations and individuals in Vietnam that are involved in health insurance.

3. This Law does not apply to commercial health insurance.

COVID-19 had a Minimal Impact on Private Health Insurance Market

COVID-19 impacted various manufacturing and service-providing industries in the year 2020-2021 as it led to the closure of workplaces, disruption of supply chains, and restrictions on transportation. However, the imbalance between demand and supply and its impact on pricing is considered short-term and is expected to recover as this pandemic comes to an end. Due to the outbreak of COVID-19 throughout the globe, the demand for private health insurance has increased tremendously. Also, the fear of the pandemic and the increased cost of medical services helped the health insurance market grow during the pandemic. In addition, health insurance companies introduced packages and solutions for covering the medical costs of treating covid19 infected insurers. Thus, even though the other industries suffered a lot during covid19 outbreak, the Vietnam private health insurance industry was growing significantly.

Market Dynamics of Private Health Insurance Market Include:

Drivers/Opportunities

• Increasing cost of medical services

Health insurance provides financial support in cases of serious sickness or accident. Increasing medical services’ costs for surgeries and hospital stays has created a new financial epidemic around the world. The cost of medical services is comprised of the cost of surgery, doctor fee, hospital stay cost, cost of the emergency room, and diagnostic testing cost, among others. Therefore, this increase in the cost of medical services propels the growth of the market.

• Growing number of daycare procedures

Daycare procedures are those types of medical procedure or surgery that primarily requires less stay time in the hospitals. In the daycare procedure patients are required to stay in the hospital for a short period. Most of the health insurance companies are now covering the procedures of daycare in their insurance plans, and for the claim of such types of surgery, there is no compulsion on spending 24 hours in the hospital, which is the minimum stay in the hospital to claim insurance. While most of the health insurance plans cover hospital stays and major surgeries, the policyholders can also claim daycare procedures under their health insurance policy, which propels the demand of the market. 

• Mandatory opting for health insurance in public and private sector

Buying a healthcare insurance policy is a mandatory provision for the employees in the public as well as the private sector. Health insurance offers key medical benefits which the employee can avail of while working in a corporate. In case of any emergency or medical issues, the health insurance cover is highly useful to meet treatment expenses. The employee’s health insurance is an extended benefit, given by the individual employer to their employees. The health insurance provided not only covers the employee but also covers their family members under the same policy plan. Also, in certain cases, the employer may pay a part of a premium or insurance coverage of the health insurance policy. 

• Increasing old age population

Old age people are likely to have more health problems due to aging and weak immune system, which may include dental issues, heart issues, cancer issues, and terminal illnesses. A good senior citizen health insurance can help senior citizens to opt for good health insurance services to reduce future financial worries. Thus, an increasing number of old age population can boost the growth of the health insurance market.

• Increasing awareness about the benefits of health insurance

In the face of a medical emergency, health insurance allows the consumers to take their mind off the stress related to healthcare costs and focus on the treatment instead with health insurance. Medical emergencies can happen at any time, regardless of our current good health or disciplined lifestyle. Therefore, it is important to plan for and protect our families and ourselves from any unforeseen medical situations, especially when there are elderly parents at home as they are more susceptible to infections or other illnesses.

Restraints/Challenges faced by the Private Health Insurance Market

• High cost of premiums

Health insurance covers all types of medical treatment costs. It provides financial support to the policyholder since it covers all the medical expenses when the policyholder is hospitalized for the treatment. Health insurance also covers pre as well as post-hospitalization expenses. To purchase health insurance, the policyholder has to pay insurance premiums regularly to keep the health insurance policy active. The cost of insurance premium is high in the majority of cases based on the insurance plan, which is hampering the growth of the market.

• Lack of awareness regarding health insurance  

In the field of healthcare, a large portion of the world population is still not aware of the benefits of health insurance policies. The expenses of medical care are increasing across the world with advancements made in the field. Through the advancement in technology, the healthcare sector is one of the growing segments, however, the penetration rate of health insurance policies remains low due to a lack of awareness regarding the benefits offered by them

This  Vietnam private health insurance market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the private health insurance market contact Data Bridge Market Research for an Analyst Brief. Our team will help you make an informed market decision to achieve market growth.

Recent Developments

• In February 2022, Assicuranzioni Generali S.P.A. signed an agreement for the acquisition of La Me´dicale, which is an insurance company for healthcare professionals. This development also foresees the sale of Predica’s1 death coverage portfolio, marketed and managed by La Me´dicale.
• In May 2021, Aetna Inc.  won ‘Best Individual International Healthcare Provider’ at the UK Health & Protection Awards for the first time. Company was also highly commended by the judges for ‘Best Group International Private Medical Insurance Provider’. For eight consecutive years (2013 - 2020), company was chosen for Health Insurance and Protection Awards’ ‘Best Group International Private Medical Insurance Provider’. This development gave global recognition to the company.

Vietnam Private health insurance Market Scope

The Vietnam private health insurance market is segmented on the basis of type, health plan category/metal levels, provider type, age group, and distribution channel. The growth amongst these segments will help you analyze growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Critical Illness Insurance
• Individual Health Insurance
• Family Health Insurance
• Disease-Specific Insurance
• Others

On the basis of type, Vietnam Private Health Insurance market is segmented into critical illness insurance, individual health insurance, family health insurance, disease-specific insurance and others.

Health Plan Category/Metal Levels

• Bronze
• Silver
• Gold
• Platinum
• Others

On the basis of health plan category/metal levels, Vietnam private health insurance market is segmented into bronze, silver, gold platinum and others. 

 Provider Type

• Health maintenance organizations (HMOS)
• Preferred provider organizations (PPOS)
• Exclusive provider organizations (EPOS)
• Point-of-service (POS) plans
• High-deductible health plans (HDHPS)
• Others

On the basis of provider type, Vietnam private health insurance market is segmented into health maintenance organizations (HMOS), preferred provider organizations (PPOS), exclusive provider organizations (EPOS), point-of-service (POS) plans, high-deductible health plans (HDHPS) and others.

Age Group

• Young Adulthood (19-44 Years)
• Middle Adulthood (45-64 Years)
• Older Adulthood (65 Years And Above)

 On the basis of age group, Vietnam private health insurance market is segmented into young adulthood (19-44 years), middle adulthood (45-64 years) and older adulthood (65 years and above).

Distribution Channel

• Direct Insurance Companies
• Insurance Aggregators
• Others

 On the basis of distribution channel, Vietnam private health insurance market is segmented direct insurance companies, insurance aggregators and others.

Competitive Landscape and Private Health Insurance Market Share Analysis

The Vietnam private health insurance market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Vietnam presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to Vietnam private health insurance market.

Some of the major players operating in the  private health insurance market are Aetna Inc. (A subsidiary of CVS Health) (U.S.), AIA Group Limited (Hong Kong), HSBC Group (Hong Kong), Tokio Marine (Japan), Pacific Cross (Philippines), Great Eastern Holdings Limited (Malaysia), ASSICURAZIONI GENERALI S.P.A. (Italy), Raffles Medical Group (Singapore), Dai-ichi Life Vietnam (Vietnam) among others.

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