Domestic enterprises account for 80% of the market share of non-life insurance
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.