Life insurance market lifts 25% in first half

The life insurance market in the first half of the year saw revenue gains of about 25 per cent over the same period last year, according to preliminary statistics from the Viet Nam Insurance Association.

Among the biggest gainers was Dai-ichi Life Viet Nam, which reported earnings of more than VND120 billion (US$6.3 million) from new premium policies in the first six months of the year, up 48 per cent against the same period in 2009.

Other insurance companies also reported strong growth in the first half of the year. ACE Life said new premium policies were up 40 per cent, while Korea Life Viet Nam said it saw premiums rise nearly 80 per cent in the second quarter.

AIA Viet Nam also saw solid growth in premiums, as did Prudential Viet Nam, which said its market share by premiums rose 27 per cent in the first six months. It now has a market share (by premium revenue) of 40 per cent.

Jack Howell, Prudential Viet Nam’s CEO, said strong growth in the local insurance market was an indictment of Viet Nam’s development potential.

Meanwhile, Phung Dac Loc, general secretary of the Viet Nam Insurance Association, said there was still room for growth in the local insurance market.

At the moment, just 5 per cent of the Vietnamese population has life insurance. It is estimated that 30 per cent of the country’s population can afford to take out insurance policies.

There are currently 11 life insurance companies in the country. Only Bao Viet is home-grown.

Nguyen Quang Tung, general director of the Viet Nam Investment and Development Bank’s insurance company, said his firm planned to expand its life insurance business by forming joint ventures with foreign partners. — VNS

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