Insurance market primed to explode

Business Monitor International (BMI) has estimated that total premiums in 2014 in Viet Nam will increase to nearly VND58.5 trillion (US$3.1 billion), including non-life premiums of more than VND27 trillion ($1.4 billion) and life premiums of VND31 trillion ($1.6 billion).

BMI’s Viet Nam Insurance Report for the second quarter of this year, posted at www.researchandmarkets.com, said that in 2009 the corresponding figures were VND24.6 trillion ($1.3 million), VND13.5 trillion ($710.5 million) and VND11.1 trillion ($584.4 million).

BMI expects non-life penetration to rise from 0.83 per cent in 2009 to 1.01 per cent in 2014, and for life density to increase from US$7.10 per capita to $17.57.

The report includes a regional review that looks at the actual and forecast growth rates for premiums across both major segments.

Last year, the impact of the global financial crisis was much greater in the Republic of Korea, Australia, Singapore and Hong Kong.

For the time being, BMI expects that the most rapid growth will take place in countries such as Viet Nam and the Philippines where organised saving is at an embryonic state of development.

According to BMI, in the first quarter of this year, the three largest non-life companies, in terms of gross written premiums, were Bao Viet, PVI and Bao Minh, whose market shares were 42 per cent, 12 per cent and 12 per cent respectively.

In the life segment, the leaders were Prudential, Bao Viet and Manulife, with market shares of 40 per cent, 33 per cent and 10 per cent respectively. — VNS

Tags: Vietnam insurance, Vietnam insurance industry, Vietnam insurance market