Vietnam Insurance Sector: Untapped Potential: Industry Research Report

Vietnam Insurance Sector: Untapped Potential

Published Date: May 2008

Published By: The Knowledge Centre

Page Count: 107

Order Code: R3578-3

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Between 2000 and 2007, Vietnamese life insurance sector increased from $51.12 million to $586.24 million, CAGR growth of 35.65% during this period. We forecast that the life insurance market in Vietnam would grow at a CAGR of 10.71% and an annual average growth rate of 13.21% between 2007 and 2011. From $596.24 million in 2007, the market will increase by approximately $388 million and reach $975.21 million by the end of 2011. Non-life premiums in Vietnam were estimated to be $555.74 million in 2007, a growth of $429.74 million from the market size of $126.00 million in year 2000. Between 2007 and 2011, we project a CAGR of 13.89% .i.e. from $555.74 million in 2007; the non-life insurance sector in Vietnam will reach $1064.75 million.

According to the Vietnam Insurance Association, there are 120,000 insurance agents and 10,000 employees in the country. There are currently 16 non-life insurers, eight life insurers and seven insurance brokers. Vietnam's life insurers offer about 100 products and generated premium income. Fifteen foreign insurers have established operations and 30 others have representative offices. Foreign-owned insurers dominate the life insurance market. Domestic insurers are more dominant in the non-life insurance market and foreign insurers hold only a 7 percent market share. Some of the top insurance companies in Vietnam are ACE Life Insurance Co., Ltd., AIG General Insurance (Vietnam) Company Limited, Bao Viet Holdings, Bao Minh, Groupama/GAN, Nipponkoa Insurance Co., Ltd., Prudential Vietnam Assurance, Petrolimex Joint Stock Insurance Company (PJICO), Petrovietnam Insurance Company (PVIC), and QBE Insurance (Vietnam) Company Limited etc.

Major Driving Factors

Economic growth above 8 percent
Entry to the World Trade Organization (WTO)
Opening up of insurance market for foreign investments
US-Vietnam bilateral trade agreement in 2001
Emerging middle class & increasing literacy rate
Increasing foreign direct investments
And many more…

Major Issues & Trends

Foreign investors targeting Vietnamese Insurance Sector
Foreign companies trying to capture Vietnamese Market
Insurance still in a nascent stage due to traditional mindset
Lack of infrastructure and support
Setting up of a national export-credit insurance organisation
Demand for risk prevention increasing
Staffing concerns in insurance companies
Establishment of the Laos-Vietnam Insurance Joint Venture (LVI)
Recent developments at Bao Viet
And many more…

Topics covered in the report

Economic performance of Vietnam
Recent economic policies of the Communist Party
Macroeconomic trends and drivers
Focus on increasing Foreign Direct Investments and opening up of insurance market
Past and present scenario of Vietnamese Insurance Market & Future Outlook
Past and present scenario of Vietnamese Life Insurance Market & Future Outlook
Past and present scenario of Vietnamese Non-Life Insurance Market & Future Outlook
Driving factors for Vietnamese Insurance Market
Entry in WTO
Setting up of a national export-credit insurance organisation
Establishment of the Laos-Vietnam Insurance Joint Venture (LVI)
Government strategic initiatives to strengthen Insurance Market
Competitive Landscape & Market Share of foreign and domestic players
Recent developments in Bao Viet
Company profiles of top players
And many more…