VN insurance benefits from foreigners

The participation of foreign investors in Viet Nam’s insurance market will develop the market while enriching domestic insurers with experience and governance. According to a report of Bao Viet Securities Company (BVSC) on Viet Nam’s insurance industry, the number of life insurance products in Viet Nam rose from 100 in 2009 to 350 by the end of 2016. The number of non-life insurance products also surged from 200 in 1999 to more than 1,000 today. BVSC also predicts that new products will continue to increase in the domestic insurance market. Meanwhile, modern distribution models of the local insurance industry have also been gradually developing, thanks to the participation of foreign investors. A survey of Swiss Re shows that Viet Nam’s non-life insurance market is trending to enlarge direct distribution channels, such as online or telesales, while the local life insurance market’s distribution is still mainly through intermediate agents. Bancassurance was launched in Viet Nam for the first time in 2001 with the cooperation between AIA and HSBC, while online distribution channel was implemented by a majority of large-sized insurers in 2016. According to BVSC’s report, the capital hike, with the participation of foreign investors, has helped domestic insurers enhance their insurance capacity through training, legal framework and operation of products. Pham Thu Phuong, deputy director of the Ministry of Finance’s Insurance Supervisory Authority, said the insurance sector this year targets to gain a total revenue of VND129.24 trillion (US$5.69 billion), up 22.38 percent against 2017. The sector also plans to… [Read full story]

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