According to the Insurance Association of Vietnam (IAV), the country's life insurance market recorded 1,141,841 new policies in the first nine months of 2026, up 4.3% from the same period last year.

Total life insurance premium revenue was estimated at VND101.62 trillion (approximately $3.91 billion), down 4% year on year.

Meanwhile, life insurers paid out around VND55.73 trillion ($2.14 billion) in benefits and claims during the period, an increase of 21.5%. These payments fulfilled contractual obligations when the relevant conditions for insurance payouts were met.

Revenue from newly issued life insurance policies was estimated at VND15.89 trillion ($611 million) in the first nine months.

Traditional insurance agents remained the largest distribution channel, accounting for more than 51% of new business premium revenue.

Bancassurance, the distribution of insurance products through banks, contributed nearly 45%, while other channels accounted for approximately 4%.

The figures underline the continued dominance of traditional agents and bank-based distribution in attracting new life insurance business.

The substantial contribution from bancassurance also helps explain why Vietnamese banks have recently stepped up their involvement in the insurance industry.

After years of MB dominating the bancassurance segment, Techcombank has recently overtaken its rival to become the leading bank in this distribution channel.

According to Techcombank's consolidated financial statements, revenue from insurance business services reached VND2.15 trillion ($82.7 million) in the first nine months of 2026, 2.4 times the level recorded a year earlier and nearly 60% higher than its revenue for the whole of 2025.

Net income from the segment approached VND1.7 trillion ($65.4 million), more than doubling year on year.

As a result, insurance's contribution to the bank's total service income increased from 10% to 15%.

Notably, Techcombank's life insurance subsidiary, Techcom Life, received its operating license only late last year but has already made rapid inroads into the market.

MB, meanwhile, has yet to release its full nine-month business figures. However, the bank disclosed that its insurance subsidiary, MB Life, generated approximately VND900 billion ($34.6 million) in new business premiums during the first eight months of 2026.

MB Life's cumulative total premium revenue reached nearly VND3.1 trillion ($119.2 million) over the same period.

Another significant development is the licensing of Vietnam Prosperity Bank Life Insurance Joint Stock Company (VPLife), which is expected to begin operations in the first quarter of 2027.

The arrival of VPLife could bring further competition to Vietnam's bancassurance market next year.

Its parent bank, VPBank, had previously established OPES, a non-life insurance company.

By September 30, VPBank reported more than VND5.8 trillion ($223 million) in insurance service revenue.

Of that amount, digital insurer OPES alone generated more than VND3.6 trillion ($138.5 million) in revenue during the first eight months of 2026, representing growth of 30% from the same period last year.

LPBank also reported strong growth in insurance-related earnings.

According to its third-quarter financial statements, revenue from insurance agency operations reached approximately VND5.69 trillion ($218.8 million) in the first nine months of 2026, up 163% from VND2.16 trillion ($83.1 million) in the corresponding period of 2025.

The figures highlight the growing importance of insurance distribution as a source of fee-based income for Vietnamese banks, even as the broader life insurance market continues to face pressure on premium revenue.

With established lenders expanding their insurance operations and new players preparing to enter the market, competition for insurance customers through banking networks is expected to become more intense in 2027.

Tuan Nguyen