Important pillar in household asset structure
In many developed economies, insurance and pension funds often account for over 20% of household total assets, showing that this is not only a financial protection tool but has become a component in long-term asset management strategies.
According to Allianz Global Wealth 2025 report released by Allianz, the total financial assets of households worldwide reached approximately 269 trillion Euros by the end of 2024. Of which, insurance and pension funds accounted for about 25.8%, becoming one of the three main pillars in the family's asset structure, besides securities and bank deposits.
By market, in Japan, insurance and pension funds account for about 22.8% of the family's total financial assets. In China, this figure is 12.5%. Meanwhile, in North America, the rate is 26.6%.
The report argues that this difference reflects the pension structure and the level of financial market development in each region. In developed economies such as North America or Japan, pension systems and life insurance products have developed for a long time, making these tools a familiar part of family long-term financial plans.
Meanwhile, for developing economies, the proportion of assets for insurance and pension funds is often lower because the social security system and financial product markets in these countries are still in the process of development.
Eurostat data also shows a similar trend. In 2024, insurance, pension funds and financial provisions accounted for about 26.9% of the total financial assets of households in the European Union. This proportion is equivalent to traditional assets such as bank deposits or securities in the asset structure of many households.
This proportion shows that insurance and pension funds are no longer seen as individual provisioning tools, but are gradually playing a role as a stable asset class in the long-term financial portfolio of families.
Why does insurance account for a significant proportion in the financial structure?
Many financial institutions often see insurance as an important part of the household's asset structure for many reasons.
First, to protect finances from risks. According to the OECD Organization for Economic Cooperation and Development, insurance plays an important role in helping individuals and families transfer financial risks to insurance companies if they encounter incidents that may cause major losses such as serious medical costs, accidents, deaths... Insurance helps families avoid financial breakdowns from risks.
Second, insurance plays a role in maintaining asset structure. According to UBS bank's Global Family Office Report 2024, family companies often use life insurance in risk management strategies and asset transfer between generations.
A survey conducted in China shows that about 70% of people with large assets have integrated insurance into their overall financial plans; in which, nearly 30% of respondents said they allocate 11% or more of their total assets to insurance products.
Perspective on the Vietnamese market
According to Knight Frank in Wealth Report 2025, Vietnam has about 5,459 individuals with net assets over 10 million USD and is in the fast-growing group in Southeast Asia. The increase in the group of individuals with large assets is often seen as a signal that the middle class is expanding - an important factor promoting the need for professional asset management and planning.
At that time, the asset structure will not only focus on accumulation but also towards building a more balanced financial portfolio. Allocating a certain proportion to stable financial instruments such as insurance or pension funds may gradually become part of the asset management strategy of the new middle class.
However, compared to many developed markets - where insurance and pension funds account for more than 20% of household assets - the level of insurance participation in Vietnam is still quite low. According to the Vietnam Insurance Association, as of June 2025, the total number of new life insurance contract holders is only equivalent to about 11.7% of the population.
In the context of people's incomes gradually improving and better awareness of financial risk management, insurance can play an increasingly clearer role in the financial picture of families, becoming a stable asset class that helps balance the portfolio between investment, accumulation and financial protection in the long term.
