Quarter I/2017: Insurance market maintained sustainable growth

Vietnam Financial Times
05:55' CH - Thursday, 08/06/2017

According to the latest figures of the Insurance Supervisory Authority, Ministry of Finance, the insurance market in the first three months of 2017 continued to witness impressive growth with the estimated total premium revenue of VND 21,874 billion, increasing by 19.33% (as compared to the same period last year).

Of which premium revenues from non-life and life insurance were estimated at VND 9,622 billion and VND 12,252 billion, respectively.

Total new business premium from life insurance rose by over 29%

As reported by the Insurance Supervisory Authority, in Q1/2017, the life insurance market maintained its fast and sustainable growth with the estimated total premium income from new policies of VND4,283.51 billion, up 28.32%. This is a high growth rate recorded only in the first three months, which indicates the great efforts of state agencies and of insurance companies themselves to improve service quality, develop new products and attract more and more customers.

By line of business, endowment and universal life still accounted for a high proportion of the total new business premium. Of the sum, universal life made up for 45.76%, endowment occupied 38.38%, term insurance captured 1.92%...

The Insurance Supervisory Authority also revealed that the market shares of the top five insurance companies determined by new business premium saw a slight change. In particular, Baoviet Life rose through the ranks to take the lead in the market, the position that Prudential held at the end of 2016, with a market share of 21.81%. Prudential ranked second with 19.68%. Manulife still held the third position with 13.91%, followed by Dai-ichi (13.44%), AIA (10.64%), Generali (7.33%), Chubb (4%), Hanwha (2.98%)…

The total revenue of life insurance premium in Q1/2017 was estimated to reach VND 12,252 billion, up 29.25%. The number of effective policies (main policies) in Q1 was estimated at 6,633,414, up 15.06%.

Top 5 non-life insurers accounting for almost 60% market share

The Insurance Supervisory Authority also reported that the total premium revenue of the non-life insurance market in Q1 maintained its upward tendency with VND 9,622 billion, up 8.71%.

Regarding the non-life insurance market share, Baoviet Insurance led the market in terms of direct premium revenue with estimated revenue of VND 1,870 billion, up 18.5% YoY, accounting for 19.44% of market share. PVI Insurance ranked second with VND 1,695 billion, down 10,06% YoY, holding a market share of 17.61% while Bao Minh ranked third with VND 856 billion, up 15.87% YoY, accounting for 8.90% of market share. PTI followed with VND 748 billion, up 3.82% YoY, accounting for 7.77% of market share; PJICO’s direct premium is VND 593 billion, up 2.02% YoY, accounting for 6.16% of market share. The top five non-life insurers held a market share of almost 60%.

In addition to the leading market companies mentioned above, some insurance companies have a growth rate of direct premiums more than 50%, over the same period in 2016, including Phu Hung (VND 29 billion, up 92.32%), UIC (VND 220 billion, up 89.07%), VNI (VND 136 billion, up 54.17%)...

By line of business, motor vehicle insurance accounted for the largest proportion of total revenue (VND 3,284 billion, accounting for 34.13%), followed by health insurance (VND 2,619 billion, accounting for 27.22%), property insurance and casualty insurance (VND 1,339 billion, accounting for 13.91%)...

Agricultural insurance to be maintained

In order for the insurance market to achieve higher growth in the coming time, the Insurance Supervisory Authority also revealed that it would continue to enhance the management and supervision of insurance business activities in the direction of combining remote supervision and enhancement of discussion and communication with insurance companies by different ways.

At the same time, the Insurance Supervisory Authority will continue to guide insurance companies to implement provisions of the Decree No. 73/2016/ND-CP and the Circular guiding the implementation thereof. Notably, it will pay attention to new provisions on setting up technical reserves; formulating wordings, terms and conditions, motor vehicle insurance premium schedule; continuously improving professionalism of the system of insurance agents; encouraging the development of insurance products towards diversity and convenient convertibility to either simple or comprehensively combined products, meeting various demands and affordability of customers, etc.

The Insurance Supervisory Authority also said that in 2017, the Ministry of Finance plans to submit to the Government for approval and promulgation two decrees: Decree on agricultural insurance and Decree replacing the Decree No. 130/2006/ND-CP and Article 2 of the Decree No. 46/2012/ND-CP providing for compulsory fire and explosion insurance regime;

In addition, the Ministry of Finance will continue to coordinate with the Ministry of Agriculture and Rural Development to draft the Decree amending the Decree No. 67/2014/ND-CP under instructions of the Government...

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