Domestic enterprises account for 80% of the market
Taking advantage of the "home field" advantage, recently, Vietnamese businesses have penetrated deeply into the non-life insurance sector - a field that is considered highly profitable - and now hold more than 10 80% market share in this field
According to the Vietnam Insurance Association, up to this point, the whole market has 19 enterprises operating in the field of non-life insurance, of which 7 are foreign-invested enterprises.
In the first six months of the year, the total non-life insurance premium revenue of the whole market reached VND 3,600 billion, up 20% over the same period last year and the highest increase in the last 5 years.
Contributing the most to thisimpressive business result was Vietnam Insurance Corporation (Bao Viet) with VND 1,100 billion with high-revenue operations such as aviation insurance, cargo and liability insurance, airport owner civil liability insurance, installation risk insurance, vehicle owner liability insurance for passengers and product liability insurance.
Besides, there were also the presence of many other large enterprises such as Vietnam Oil and Gas Insurance Joint Stock Corporation (PVI) 980 billion VND, Bao Minh Corporation 825 billion VND, and Insurance Joint Stock Company. Petrolimex (PJICO) 335 billion dong.
Some other insurance companies such as Global Insurance Company (GIC), Bank for Investment and Development Insurance Company of Vietnam (BIC), although newly established and put into operation not long ago, have also been in operation for a long time. has achieved encouraging business results thanks to fully exploiting the support as well as technical and property insurance services from major shareholders.
According to the Vietnam Insurance Association, Vietnamese businesses have been successful in maintaining and developing domestic market share before many big names such as Prevoir of France; AIG, ACE Life, New York Life of America.
However, experts of the Association also warned that domestic enterprises must take advantage of the opportunity to develop strategies to expand market share further, providing many new products to compete with foreign enterprises. when Vietnam lifts all restrictions on foreign insurers next year, according to its WTO accession commitments.
The leader of a Vietnamese insurance company revealed that this business has been prepared so that when the insurance service in urban areas is saturated, it will develop a life insurance service combined with savings in the urban area. rural areas with a fee suitable to the income level of local people.
According to experts' forecasts, along with the stronger development of non-life insurance thanks to the implementation of commitments in the WTO, the Vietnamese market in the next few years will still favor the development of life insurance.