Non-life premiums climb

Non-life insurance revenue reached VND8.24 trillion (US$429.21 million) in the first six months of this year, the Association of Vietnamese Insurers announced on Monday.

The increase represents a 28 per cent rise over the first half of last year.

All types of insurance saw growth in the first half of the year, with fire and explosion coverage reaching VND723 billion ($37.65 million), up 125 per cent over the same period last year. Agricultural insurance followed with a surge of 109 per cent and construction insurance increased by 68 per cent.

PetroVietnam Insurance Joint Stock Corp earned the most in non-life insurance premiums during the period with VND1.97 billion ($102.86 million) in revenue, followed by Bao Viet Insurance Corp, Bao Minh Insurance Corp, Petrolimex Joint Stock Insurance Co (PJICO) and Post-Telecommunication Joint Stock Insurance Co (PTI).

In addition to insurance, the insurers also offered many other products and services in the first half of the year.

BIDV Insurance Co (BIC) promoted its bancassurance products in co-operation with the Bank for Investment and Development of Viet Nam (BIDV) with nearly VND30 billion ($1.56 million) in revenue in the first six months of this year, making up 14 per cent of the company’s total revenue.

Pham Quang Tung, BIC’s general director, said that “diversifying products and expanding our network with other banks is expected to help us develop bancassurance products.”

In a phone interview, Phung Dac Loc, secretary general of the Association of Vietnamese Insurers said: “Strengthening our products also creates faith among our customers. Focusing on potential markets as well as developing product distribution channels through banks and post helps us save money and raise the effects of our trade activities.”

Loc predicted that life and non-life insurance revenues would rise to 20 per cent and 33 per cent respectively in the final six months of the year.

The Ministry of Finance has recently given its approval in principle to two new companies, both from Taiwan: Cathay Insurance Viet Nam and the life insurance firm Fubon Viet Nam. The Cathay and Fubon brands will begin to offer both life and non-life insurance services to add to their services. — VNS

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