"Research and Markets" has said that Vietnam insurance market is one of
the fastest growing insurance markets in the world and Vietnam insurance
sector offers ample opportunities for international insurers.
Insurance companies saw high profits last year, with insurance premiums
totalling 30.8 trillion VND (1.5 billion USD) in 2010 – far surpassing
2009's total of 25.5 trillion VND (1.2 billion USD), said the president
of the Association of Vietnamese Insurers, Trinh Quang Tuyen.
The Government wants to pilot an agricultural insurance scheme in some
localities from July, but insurers are reluctant to get involved.
In newly ratified Decision 315, the Government said agricultural
insurance aimed to cover farmers affected by natural calamities and crop
and stock diseases.
Total insurance premiums are estimated to have reached 30.69 trillion
VND (1.57 billion USD) this year, a rise of 20.3 percent on last year,
according to the Ministry of Finance's Insurance Management and
Supervision Department.
While the country is waiting for Government approval of a pilot
agricultural insurance project, a model of livestock insurance fund in
Son La province’s Moc Chau Dairy Cow Breeding JSC (MCDCB) has been
successful, helping minimise risks for farmers.
The domestic life insurance market has been sparked into life by a story
that received wide media coverage about a businesswoman whoa paid an
annual premium of 1.2 billion VND (61,000 USD).
Non-life insurance revenue reached 8.24 trillion VND (429.21 million
USD) in the first six months of this year, according to the Association
of Vietnamese Insurers.
The Japanese economic daily, Nikkei on August 11 carried an analysis
saying that Vietnam's nonlife insurance market is attracting more and
more corporate and individual customers, and the intensifying
competition may spur a realignment among insurers.
The Vietnam Bank for Agriculture and
Rural Development (Agribank) has said it is planning to submit an
agriculture insurance project to the government, under which all
compensation will be paid by Swiss Reinsurance.
Insurance firms nationwide are warming
up to launch a range of new products to catch the opportunity to do
business this year after optimistic forecasts on Vietnam and the
world’s economic recovery.
Insurance companies in Vietnam have started to work with commercial banks to introduce the Bancassurance Service to the country, hoping to raise revenues and expand their market share.
Bancassurance includes a range of insurance products sold through banking networks and is also known as the Banking Insurance Model or BIM.
The Moc Chau Dairy Cow Breeding Joint
Stock Company is deploying a programme to insure milk and milk-cows in
the northern province of Son La to help local farmers stabilise
production.
Italian giant insurer Assicurazioni
Generali will open its representative office in Hanoi next year,
continuing to pursue its strategy to expand it presence in Asian
markets.
