Illustrative photo (Source: Internet)
Hanoi (VNA) – Vietnamese life insurance companies are seeing good growth in a niche market, holding a majority market share in the north central provinces of Nghe An, Ha Tinh and Quang Binh as well as in south western localities.

The information was released by Phung Ngoc Khanh, Director of the Agency for Insurance Supervisory and Management under the Ministry of Finance (MoF), at a recent press briefing.

Pham Thu Phuong, Deputy Director of the agency said while foreign players are dominating the life insurance market, the only Vietnamese company in this field has gained good development in technology, marketing and IT application.

In non-life insurance, domestic companies are actively seeking big foreign insurance firms as strategic partners, aiming to improve their financial ability and competitiveness, she said in response to the Vietnam Economics Times’ question about the competitive capacity of Vietnamese insurance companies.

Phuong added that local insurers are also undertaking restructuring their business governance, products and distribution channels.

Regarding supervision and inspection of insurance companies, Deputy Director of the Agency Nguyen Quang Huyen said a total of 19 insurance companies were inspected in 2015.

He noted that the ministry’s inspections revealed several violations, mostly related to regulations on investment and debt management, compensation payment and sharing of profits.

The inspection plan in 2016 approved by the Finance Minister will target seven firms, including Liberty, Bao Long, Prudential, Daiichi, Kathay, Sai Gon and Military Insurance.
The MoF said it will continue to intensify supervisory and management activities, thus timely giving recommendations to insurance firms.

It is working hard to improve management and supervision ability of State management agencies and update regulations to match reality.

International cooperation and integration in the insurance field will be fostered, focusing on expanding connection with countries having a developed insurance sector to learn from their experience.

The agency will work closely with partners and sponsors to map out technical assistance programmes, strategic targets and market development measures.

Vietnam’s insurance market saw total insured value reach 11.7 quadrillion VND (524 billion USD) from 2011-15. The country is currently home to 61 insurance providers, including 29 non-life insurance firms, 17 life insurance enterprises and two re-insurance and 12 insurance broker companies.-VNA