Compulsory liability insurance for construction investment consultants and construction workers jumped 791 and 848 percent in H1 2020, respectively. (Photo: tinnhanhchungkhoan.vn) Hanoi (VNS/VNA) - Professional liability insurance revenue, especially inthe construction industry, surged strongly in the first half of this year,thanks to the rise in foreign direct investment (FDI) construction projects andstrengthening inspections.
The Vietnam Insurance Association’s preliminary statistics showed by the end ofJune, compulsory liability insurance for construction investment consultantsand construction workers jumped 791 and 848 percent over the same period lastyear, respectively.
Professional liability insurance revenue in medical examination and treatmentalso increased by nearly 60 percent against the same period last year.
According to representatives of the Post and Telecommunication Joint StockInsurance Corporation (PTI), improved awareness of compliance with Circular No329/2016/BTC on compulsory insurance in construction investment among constructioncontractors contributed significantly to the rise in revenue.
Though the circular took effect in 2016, firms have started buying professionalliability insurance for their employees recently after authorities stepped upinspections.
In addition, a rise in the number of new FDI construction projects in the firstsix months of this year also contributed to the increase in sales of theprofessional liability insurance revenue.
Though there has been an improvement in the growth rate, compared to otherinsurance products, the proportion of professional liability insurance has remainedvery modest, at only 2 percent of the insurance industry’s total revenue.
In Vietnam, the potential for the growth of liability insurance andprofessional liability insurance is relatively significant. Currently,foreign insurance companies dominate the business segment and they also serveonly foreigners in Vietnam.
Some Vietnamese names provide the products including Bao Viet Insurance, BaoMinh Insurance, PTI, PVI or MIC, but their new premium is modest.
Industry insiders attribute the struggles of Vietnamese insurance companies inthe business segment to their lack of experience.
In addition, the business segment isn’t attractive to Vietnamese insurancecompanies as cross-border insurance for foreign customers is allowed when thenew Insurance Business Law comes into effect./.
VNA
