Vietnam’s economy in the first months of implementing WTO commitments has made strides and has achieved important results, confirming that we have gained more than we have lost in the process of opening up, integrating, and deepening international cooperation.


Than GDPgrowth rate in the first 6 months was 7.87%, industrial production increased by 16.9%, consumption of goods and services increased by 22.9%, exports of 22.5 billion USD, up 19.4%, imports of 27.2 billion USD, up 30.2%.


Total FDI investment capital of 5.2 billion USD increased by 8%, a series of construction projects were started such as small hydroelectric power plants, thermal power plants, cement plants, expansion of ports, airports, urban areas and industrial parks.


The stock market, after a period of hot development, has gradually entered a stable position, the incomes of residents and business owners are increasing day by day. These are the basic potentials for growth and development of Vietnam’s life and non-life insurance market.


In early 2007, Baoviet equitized with charter capital of 6,800 billion dong, selected a strategic partner and first issued on the Hanoi stock exchange 600 billion dong. Followed by Bao Minh, Vinare, PVI, BIC… all increased their charter capital.


A number of newly established insurance companies have come into operation to exploit the insurance market. ACE has joined the Association as an official member, AIG is also in the process of joining the Vietnam Insurance Association.


Totalnon-life insurance revenue is 3,885 billion dong, if including PTI’s revenue (without details of each insurance business) is 151 billion dong, the whole market’s revenue is 4036 billion dong, up 33% compared to the same period last year. period 2006.


Leading is Bao Viet Vietnam with 1,108 billion dong, followed by PVI 1,046 billion dong, Bao Minh 819 billion dong, PJICO 361 billion dong. Insurance companies: Bao Nong, Bao Tin, Liberty, ACE, AIG have not reported revenue yet. Reviewing the insurance business situation in the first 6 months of 2007 achieved the following results:


1. Motor vehicle insurance reached VND 1,005 billion (without PTI’s data) leading in revenue, up 27.3%. Total compensation for the first 6 months of the year is 463 billion dong, accounting for 46.03% of revenue.


Leading in revenue are Bao Viet VND 376 billion, Bao Minh VND 240 billion, PJICO VND 187 billion. The highest compensation rate is Bao Long 67.84%, Bao Minh 51.34%, Bao Viet 48.86% PJICO 47.62%. Decision 23/2007/QD-BTC dated April 9, 2007 taking effect from June 12, 2007 will have the effect of growing the motor vehicle owner’s accident insurance market in the last 6 months of 2007 onwards.


Insurers have strictly complied with Decision 23/2007/QD-BTC, organized training sessions in 3 regions for 650 people, Vietnam Insurance Association printed 1 million leaflets to propagate Decision 23 and issued documents guiding the handling of Decision 23. handle some problems that may arise. The Insurance Association has completed the development of the Management Regulations.


However, Decision 23 increases the interests of customers and victims, and at the same time increases obligations to insurers, so it requires insurers to innovate and train more closely.


Insurance for motor vehicles in transit to Vietnam under the protocol No. 5 signed between countries using the Trans-Asian road is being left open and has not yet been deployed by businesses.


2 .Fire and explosion insurance and all property risksrevenue of 418 billion dong, of which Fire and Explosion Insurance reached 298 billion dong (without PTI’s revenue) growth of 42.02%, of which fire and explosion increased 45.29%.


Leading in revenue is Bao Minh with VND 109 billion, Bao Viet Vietnam with VND 93 billion, PVI with VND 56 billion, and PJICO with VND 39 billion. The overall rate of compensation is 35.37%, of which fire and explosion are 38.19%.


The highest compensation rate is Bao Minh 82.28%, PVI 61.15%, Bao Viet Vietnam 44.56%, Bao Long 42.18%. Decision 28/2007/QD-BTC dated 24/4/2007 promulgating rules on compulsory fire and explosion insurance premium, effective from July 28, 2007.


Will increase market growth in the last 6 months of 2007 and especially from 2008 onwards when objects at risk of fire and explosion are publicly and transparently granted, a certificate of fire prevention and fighting safety is granted, and state budget users have been funded. buy insurance.


The Vietnam Insurance Association, in collaboration with the Insurance Department and the Fire Police, conducted training for 750 insurance officers and fire protection police in three regions of the North, Central and South to implement Decree 130, Circular 41. and Decision 28.




However, insurance businesses also face many difficulties in coordinating with the fire and fire police force to sell compulsory fire and explosion insurance to the right subjects, transparently disclose the collected fees and separate the compulsory fire and explosion fees from the compulsory fire and explosion insurance. 


Included in the all-risk, all-inclusive premium. To prepare for the implementation of compulsory fire insurance, the Insurance Association organized a class on fire and explosion insurance and special risks Business interruption insurance in Malaysia with 26 employees of registered enterprises. in July 2007. It is hoped that through training and application of Decision 28, unfair competition will be eliminated.


3.Shipowner’s hull and civil liability insurance reached VND 413 billion in revenue, up 14%. Leading the way are PVI with VND 163 billion, Bao Viet VND 115 billion, Bao Minh VND 68 billion, and PJICO VND 47 billion.


The overall compensation rate is 46.48%, the highest compensation rate is PJICO 102.56%, Bao Long 57.34%, Bao Viet 50.30%. If business results are calculated according to the financial year, 7 consecutive years of hull insurance and the shipowner’s civil liability has a very high compensation rate from over 80% to 200%.


The International P&I Association both increased premiums for insurers because of bad business results. However, insurers continue to compete by lowering insurance premiums, failing to fulfill their commitments in the cooperation agreement in the field of ship insurance.


Ferry insurance also extends to the southern China operating area, or the waters of Thailand and Cambodia if disputes arise that are difficult to handle according to the Maritime Law and the Inland Water Traffic Law as well as the risk of any adverse consequences. Suspicious, high risk of civil liability of shipowners.


Shipbuilding insurance continues to compete with lower premiums while risks and losses in shipbuilding and launching are high. The insurers are not interested in inland waterway insurance, especially inland waterway business’s civil liability insurance for passengers and flammable and explosive goods.


4. Oil and gas insurance achieved a revenue of VND 410 billion, up 55.44%, led by PVI with a revenue of VND 400 billion, Bao Viet at VND 10 billion. the overall compensation rate of 6.85% is a positive figure.


In addition to insurance for works, machinery and equipment invested in exploration, prospecting and exploitation of oil and gas on the mainland, continental shelf and territorial waters of Vietnam, PVI also develops insurance for machinery projects. equipment of foreign investors is being carried out in Vietnamese and international waters.


5. Personal accident insurance achieved a revenue of 400 billion VND (excluding PTI), up 22.29%. Leading is Bao Viet Vietnam with 207 billion dong, Bao Minh 180 billion dong, PVI 29 billion dong, PJICO 19 billion dong.


Compensation rate is 62.16%, the highest is PJICO 88%, Bao Viet 73.57%, AAA 55%, Bao Minh 54%. In the situation of student insurance, there are still some cases of illegal competition such as using documents from government agencies, leaving high commissions for schools to sell insurance.


This phenomenon has been promptly handled by the Ministry of Finance. The situation of insurance Vietnamese people traveling internationally, although it is compulsory to buy insurance, it is difficult to deploy to international travel agencies. A number of insurers have boldly launched many new insurance products in which attention is paid to high quality health insurance products.


When the circular guiding the implementation of Decree 45, Decree 46 is issued around August/July, it will increase the commission for exploiting human accident insurance, change the approval mode of personal insurance products to the product registration mode, encourage insurers to design insurance products that bring better benefits to customers.


Existing products will be the driving force to increase human accident insurance in the near future.


The Association’s Part-time Personal Insurance Department is preparing to negotiate a joint SOS of the Vietnam Insurance Association to bring lower fees, better prepayment to prepare for travel insurance for Vietnamese people. international travel and from there design this form of insurance uniformly.


6. Construction and installation insurancerevenue of 398 billion dong, up 19% (without PTI) not commensurate with the actual growth in construction and installation. Leading in revenue is PVI with VND 252 billion, Bao Viet Vietnam with VND 77 billion, and PJICo with VND 19 billion. 


Compensation rate is 21%, of which high compensation rate is VIA 257%, PJICO 224%. Competition by lowering premiums, reducing deductibles, and expanding insurance terms and conditions to other insurance products still occurs.


The Vietnam Insurance Association held a construction and installation insurance class at the Malaysian Academy with 24 employees of insurance companies registered to participate in July/July.


The Part-time Technical Insurance Department of the Vietnam Insurance Association is studying to develop a unified construction and installation insurance form for the whole Association, which will include the content of the standard QD33 of the Ministry of Finance promulgating the Regulations on construction and installation insurance. Construction Insurance – installation rules on the form above.


7. Cargo insuranceachieving revenue of 296 billion dong, up 33% (while import and export increased by 20%) is a good sign, but only 15% of export goods, 30% of imports, 15% of domestic goods have to buy insurance in Vietnam. Vietnam.


Leading in revenue is Bao Viet Vietnam with 82 billion dong, Bao Minh 60 billion dong, PVI 57 billion dong, and PJICO 36 billion dong. The association has issued a warning that the loss of bulk cargo often occurs in some shippers, some ports with some commodities such as dried beans, fertilizers, iron and steel in whole bundles.


However, some insurers still accept insurance against the risks of under-delivery, theft, lowering the deductible, even lowering the insurance premium to the point that it cannot cover the cost of inspection when the goods are lost. Toll collection for old ships even if there is a loss, even if there is no toll for old ships, still issue invoices to the goods owner to claim the ship owner is still happening.


8. Other types of insurance Aviation insurance reached 241 billion dong in revenue, up 10.64%, compensation rate was 1.74%, business interruption insurance reached 9 billion dong, down 15.7%, indemnification rate 7.84%, general liability insurance reached 83 billion VND, up 39%, compensation rate 8.24%.


Agriculture insurance reached 208 million VND, increased 643%, compensation rate 17.8%. Credit and financial risk insurance reached VND 404 million, up 91.5%, machinery and equipment insurance reached VND 33.5 billion, up 28.37%, the claim rate 77.54%.


After 6 months of operation in Vietnam’s insurance market, the Insurance Association has gathered opinions of insurers to propose to the Ministry of Finance to increase insurance agency commissions for a number of retail insurance operations. “no claim bourning” and humanitarian compensation.


In addition, the phenomenon of insurance brokerage extends to more than 200 compulsory insurance terms and conditions, which include a lot of coverage of insurance products on the market together, making it difficult to exploit and develop a healthy insurance market.


There has been a phenomenon of cross-border sales of products in the market, in which a number of insurance brokers have offered to sell products to foreign insurers not operating in Vietnam.

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