Insurance market sees changes in revenue structure

During the first two months of this year, total principal insurance premiums of the non-life insurance market is estimated to gain 3.248 trillion dong, up 29.7 percent against one year earlier, the Vietnam Investment Review reported, citing data of Ministry of Finance’s Insurance Supervisory Management Department.

Leading the market segment in the reporting period was PetroVietnam Insurance Co (PVI) with the premiums of 842.6 billion dong or a 26.1 percent market share, followed by Bao Viet Non-life Insurance with 709.9 billion dong or a 22 percent share, Bao Minh Insurance (BMI) with 532.2 billion dong, 16.5 percent, PJICO 249.3 billion dong, 7.7 percent market share, and PTI 96.5 billion dong accounting for a 3 percent market share.

In 2010, Bao Viet ranked the first with 4.198 trillion dong, PVI 3.512 trillion dong, BMI with 1.942 trillion dong, PJICO with 1.591 trillion dong, and PTI with 679 billion dong…

PVI led the market thanks to $27 million in renewed insurance contracts in field of petroleum installation, exploration and exploitation in Jan-Feb and it for the first time provided package insurances to Hai Thach and Moc Tinh Block 052-053 well in Nam Con Son basin conducted by Bien Dong Petroleum Management Co. Arising revenues of PVI in the period was 121 billion dong.

Most insurers saw a more moderate growth than the same period of 2010. Foreign insurers, who though accounted for a smaller market share (less than 10 percent of total principal insurance premiums), led the market in terms of growth rate. Groupama reached 6 billion dong in revenues, up 170 percent against the first 2 months of last year, ACE with 9.3 billion dong, +114.8 percent, and Fubon with 12.4 billion dong, jumping 88.3 percent, the department reported.

Licensed in last October, Cathay Vietnam Non-Life Insurance Co also started operation with initial revenues of 365.4 million dong in Jan-Feb.

Sudden changes in non-life insurance market share can be seen because of determination of new insurers who now take up a very small market share.

Ministry of Finance forecasted the country would have 26 more insurance companies by the end of 2020, 10 of which will be non-life insurers while remainder will be life insurance, reinsurance and brokerages. – Vietbiz24

Tags: Vietnam insurance market

Posted by VBN on Apr 19 2011. Filed under Insurance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry