3. Market Structure
• Total: About 58 Insurance Companies (in 2012)
No. of Insurance Companies
60
57
50
40
49
50
53
27
10
0
28
29
11
11
10
12
11
29
29
14
12
14
12
2
2
2011
2012
22
9
8
1
2007
• About 11 foreign-invested non-life insurers out of a total
of 29.
• Foreign invested insurers make up 14 of the 15 life
insurers, clearly dominating the market.
40
30
20
57
10
1
2008
1
2009
1
2010
Total
Non-life Insurance
Re-insurance
Life Insurance
• Regarding to brokerage services, 7 domestic and 5
foreign-invested companies (foreign firms making up
more than 80% of the market for brokerage services)
• Only 2 domestic Vietnamese reinsurance companies
(PetroVietnam Reinsurance, Vietnam National
Reinsurance Corporation)
Insurance Broker
3
4. Market Growth
Market size (Million VND)
60,000
140,000
114,663
50,000
99,330
10,277
100,000
10,433
40,000
84,977
71,831
30,000
6,623
8,296
18,397
7,228
57,543 6,799
20,000
120,000
106,246
15,998
60,000
13,772
11,839
9,437
8,213
10,948
13,754
17,070
20,554
22,849
0
2008
2009
• Market growth in all segments, but the growth
rate is slow down.
Market Growth (%)
25
20,000
0
2007
• Total Revenue increased 9,66% (compared
with 2011)
40,000
10,307
10,000
80,000
• In 2012, Insurance Market continued
maintaining the growth rate.
2010
2011
2012
Non-life Insurance
Life Insurance
Investment Revenue
Total Market Asset
20
15
10
5
0
2011
Non-life Insurance
2012
Life Insurance
All Market
4
6. Life Insurance Activities
Growth of Life Insurance (%)
60
52.89
50
45.81
40
34.5
30
20.08
23.13
19.9
22.42
20
10
• Life insurance grows from 2008 to
2012
37.25
19.15
13
13.04
16.57
12.05
8.66
• From 2009, growth rate has been
slow down
0
2008
-10
2009
2010
2011
2012
-12.5
-20
No. Of Contract
Amount of Insurance
Insurance Fee
6
7. Life Insurance Line of Business
Insurance Premium Structure (2012) (%)
Insurance Indemnity Structure (2012) (%)
[Structure of the amount that insureds pay for their insurances]
[Structure of the amount that insurers pay the insureds]
0.24 3.65
0.25
19.37
39.7
53.68
55.96
26.69
0.45
0.01
Whole Life
Term Life
Endowment
Annuity
Investment Linked
Whole Life
Term Life
Endowment
Annuity
Investment Linked
7
8. Life Insurance Market Share
Insurance Premium Revenue Market Share
(2012) (%)
Insurance Premium Market Share (2012)
[Market share based on Financial cost of obtaining an insurance cover, paid as a lump
sum or in installments during the duration of the policy]
[Market share based on revenues that an insurer receives as premiums paid by its
customers for insurance products]
3.39
8.04
8.31
5.52
28.27
24.09
11.11
7.06
8.44
11.73
9.06
25.82
35.45
13.17
Bảo Việt
Prudential
Manulife
AIA
Ace Life
Dai-ichi
Others
Bảo Việt
Prudential
Manulife
AIA
Ace Life
Dai-ichi
Others
8
10. Non-life Insurance Business
Business Insurance Premium Revenue
(million VND)
[Financial cost of obtaining an insurance cover, paid as a lump sum or in installments during the duration of the policy in each business of
insurance]
5,732,619
Health
3,153,052
1,915,596
1,788,035
Property All Risks
820,434
607,850
Aviation
6,257,486
6,095,377
Motor Vehicle
1,565,690
1,242,867
Fire and Allied Perils
1,787,947
1,812,518
Marine hull
526,822
455,053
General Liability
49,370
26,312
Credit and Financial Risks
94,980
64,889
Business Interruption
269,948
9,775
Agricultural
0
1,000,000
2,000,000
2012
3,000,000
2011
4,000,000
5,000,000
6,000,000
7,000,000
10
11. Non-life Insurance Business
Insurance Premium Revenue
Struture (%)
[Structure of revenues that an insurer receives as premiums paid by
its customers for insurance product]
0.42
0.22 2.31
16.75
in 2012
• Some highly grow: Health, Agricultural Insurance
7.83
6.85
25.09
• All businesses insurance grow
27.39
• Health and Motor Vehicle Insurance brought the
highest premium revenue
• Followed by Marine Hull, Property all Risks,
General Liability and Aviation
8.36
3.59
Agricultural
Business Interruption
Credit and Financial Risks
General Liability
Marine Hull
Fire and Allied Perils
Motor Vehicle
Aviation
Property All Risks
Health
• Agricultural has a high rate of development, but its
premium revenue is still low (compared with
others).
11
12. Non-life Insurance Market Share
Insurance Premium Revenue Market Share
(%)
[Market share based on revenues that an insurer receives as premiums paid by its
customers for insurance products]
• Bao Viet is also a “Big Player” in Non-life
Insurance Market
23.56
37.37
• 37,37% market share left is divided among
25 other Non-life insurance companies
10.04
8.63
Bao Viet
Bao Minh
20.39
PVI
PJICO
Others
12
14. Reinsurance Activities
45,000
Reinsurance Activities (208-2012)
Billion VND
40,000
35,000
18,297
30,000
15,932
25,000
• Foreign Reinsurance activities are
focused (98,71% of total reinsurance
premium)
13,726
20,000
15,000
10,202
11,749
15,176
14,145
12,587
10,000
7,334
5,000
• In 2012, total held back insurance
premium increase 11,29%
105
9,366
66
46
3,616
89
2,365
4,483
2008
2009
2010
0
100
6,409
7,674
2011
2012
Net Non-life Reinsurance in Foreign Countries
Net Life Reinsurance in Foreign Countries2
Held back Non-life Insurance2
Held back Life Insurance
14
15. Reinsurance Activities
3,597,948
Health
2,963,881
2,246,762
1,975,000
Property All Risks
• With high risk insurance businesses,
the companies uses reinsurance
service to share the risks.
1,245,855
1,275,344
Marine Cargo
112,109
121,824
Aviation
5,772,188
5,720,730
Motor Vehicle
Fire and Allied Perils
870,482
746,020
Marine hull
810,126
886,101
369,246
381,550
General Liability
Credit and Financial Risks
11,329
11,136
Business Interruption
41,031
27,043
Agricultural
• Motor Vehicle and Health brought
the highest Insurance Premium
Insurance because of the risk. They
need reinsurance to share risk
between the insurers.
39,308
6,271
0
1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000
Reinsurance Activities (208-2012)
Billion VND
2012
2011
15
17. Challenges
Challenges facing foreign insurance carriers
Present regulations do pose some restrictions on foreign
carriers, example:
-For establishing branches, foreign non-life carriers would have to
be operating successfully for the past 10 years, with an asset
base of at least $2 billion.
- They also cannot have any violations reported against them in
their home country for three consecutive years prior to setting up
their branches.
Online direct sales are also being promoted, although the low
awareness about the need for and value of insurance in the
country is a hurdle that is slowly being overcome.
17
18. Opportunities
Growth opportunities for foreign insurers
The revised Law on Insurance Business will allow carriers to offer investment-linked
and retirement-income products.
Premiums were projected by Business Monitor International to grow by 71 and 167
percent, respectively, for life and non-life insurance over a five-year period starting in
2010. However, the total premiums written are fairly modest because the market totals
are starting from a low base
Natural catastrophes in the region have resulted in greater dependence on
reinsurance to back up local carriers. Exposure to earthquakes, flooding, and typhoons
pose significant risks to Vietnam’s economy, with such disasters having caused
severe damage to life and property in the past.
The Vietnamese government is also encouraging insurers to introduce alternative
products to cover agricultural, export credit, fire, and explosion risks
18
19. Thanks for reading!
Sources: www.mof.gov.vn & www.hoganlovells.com
Made by Feniceb HT – Account Executive of IMAS Communication
