Non-life insurance

For the first time, PetroVietnam Insurance Corp. (PVI) has taken the lead in Viet Nam’s non-life insurance market in terms of premium turnover at VND843 billion (more than US$41 million) in the year’s first two months, according to the Ministry of Finance. The amount points to a market share of more than 26 per cent for PVI.

Meanwhile Bao Viet, the insurance firm with the longest experience in the Vietnamese market, has been pushed down from its pedestal to the second position. Its premium collection in the first two months was VND710 billion, a market share of 22 per cent.

Bao Minh was in third position with a turnover of VND532 billion, representing a 16.5 per cent share.

The market’s total turnover was VND3.248 trillion, up almost 30 per cent over the same period in 2010.

PVI has earned its position thanks to revised contracts in the areas of equipment installation, exploration and exploitation of oil and gas, and for the first time, providing an insurance package contract for an oil well development project that would bring in total premiums of US$27 million.

Its position will be further strengthened by the cooperation agreement reached last week with the Viet Nam Shipbuilding Industry Corporation (Vinashin) to provide the latter with insurance consultancy, insurance and risk management services.

Most non-life insurance firms recorded positive growth compared to the same period in 2010. Insurers with foreign direct investment, though representing less than 10 per cent of the market share, achieved the highest growth rates. For instance, Groupama (French) grew 170 per cent for a turnover of VND6 billion in the first two months of the year, while ACE (US) increased its premium by 115 per cent to reach VND 9.3 billion and Fubon (Taiwanese) grew over 88 per cent, to post VND12.4 billion.

Around 30 non-life insurance companies currently operate in Viet Nam, more than one-third of them foreign.

The ministry expects an additional 10 firms to join the market by 2020. — VNS

Tags: Non-life insurance