VietNamNet Bridge - The high expected growth rate of 30-40 percent per annum and the low 8 percent of the population with life insurance policies all make the sector attractive. Nineteen life insurers have been competing fiercely in the field.

Insurance is listed among the business fields with the highest growth rates in the economy. In 2015, the total number of insurance policies increased by 24.2 percent over the year before, while the insurance premiums increased by 40 percent, according to the Ministry of Finance’s Insurance Department. In the first six months of 2016, the premium growth rate was 37 percent.

The department’s report also shows that the total capital insurance companies invested in the national economy reached VND157 trillion, while the figure was VND171.171 trillion in the first half of 2016, of which VND138 trillion was from life insurers.

Prudential Vietnam now leads the Vietnamese life insurance market with 29.9 percent of the market share, followed by Bao Viet Life with 25.7 percent and Manulife Vietnam 12.1 percent, AIA Vietnam 9.2 percent, Dai-ichi Vietnam 9.1 percent, ACE Life Vietnam (now Chubb Life Vietnam) 4.4 percent and PVI Sun Life 2.3 percent.

The high expected growth rate of 30-40 percent per annum and the low 8 percent of the population with life insurance policies all make the sector attractive. Nineteen life insurers have been competing fiercely in the field.

A representative of FWD Vietnam commented that Vietnam’s economy is growing well, while the population is young, but the proportion of people taking insurance policies remains modest, about 6-7 percent. This shows the market has great potential, at least for 10 more years.

In Vietnam, the insurance sector makes up less than 2 percent of GDP, while the figures are 2.6 percent in Indonesia and South Korea, and 11-14 percent in Singapore.

The untapped market attracts a lot of large insurance groups. In mid-July, FWD Group officially joined the Vietnamese market after buying Reat Vietnam. 

This is a fast growing insurer in Asia with 1.1 million clients, 2,000 workers and over 10,000 agents. Vietnam is the sixth key market that it wants to develop.

Prior to that, in mid-March 2016, ACE from the US acquired 100 percent of stake in Chubb and renamed ACE Life Vietnam as Chubb Life Vietnam.

All the 19 life insurers in Vietnam have announced they will implement new business strategies in order to improve revenue. 

Since the beginning of 2016, Manulife Vietnam has been focusing on five key issues, namely solutions, customer experience, agent team building, the optimization of distribution channels through banks and digital application development.

Prudential Vietnam, in a plan to expand the distribution network, in June launched 14 general agents.

Vietnam Report, a Vietnamese credit rating firm, in late June 2016 listed the five most prestigious life insurers: Bao Viet Life, Prudential Vietnam, Dai-ichi Life, AIA Vietnam and Chubb Life.


Kim Chi