Life insurance market remains attractive
27/Aug/2008 Intellasia | Thoi Bao Kinh Te Vietnam
Aug 27, 2008 - 7:00:00 AM
|
Difficulties in the current economy and financial activities are mainly in short-term while Vietnam's life insurance market remains attractive and has much potential for insurers to enter or expand business, assessed representatives from foreign insurance firms at the moment. However, the market is under the pressure of high inflation and challenging finance and banking situation.
At present, the activities of inaugurating companies, opening representative office or changing brand name of foreign insurers are getting brisk.
During the last two months, Vietnam's life insurance market has continued receiving good information on the entering of new members from Asia along with ones from US and Europe one-year ago.
In the middle of July, Samsung Life Insurance Co officially marked its presence in Vietnam through opening a representative office, launching initial assignment to build investment strategy for the deeper participation in Vietnamese market.
Another firm Korea Life Insurance Ltd Co (one member of Han Wha) recently was granted the license from Vietnam's finance ministry to set up headquarters in HCM City and prepare to officially join the life insurance market y the first quarter of 2009.
Last month, Cathay Life, Taiwan's largest life insurance group also made the debut of 100% owned company with the chartered capital of 600 billion dong in Vietnam. Peter Lai, Cathay Vietnam's general director said now is right time to invest in Vietnam as a highly potential market in terms of life insurance, insurance for accident, annual subsidisation, health insurance and investment risk insurance.
In the start of August, a well known trade name AIA Vietnam changed name to AIG Life Vietnam and logo to launch a new business strategy in the market with stable growth and high competitiveness. According to Kenneth Juneau, general director of AG Life Vietnam, the reckless decision will help the company promote all advantages of the holding group AIG. On the other hand, we always appreciate highly the business development potentials here as well as pledge the long-term presence in Vietnam, he added.
Vietnam's life insurance market now has nine foreign members that will be increased in 2009. Finance vice minister Tran Xuan Ha stated that the country encourages foreign insurers to join its economic development.
In the first half of this year, total life insurance premium reached 5.027 trillion dong, rising 13.58% year-on-year. The premium raised from new insurance contracts in the period also gained 997 billion dong respectively, a yoy growth of 40% thanks to the launching of new products more matched with Vietnamese demanders, reported Vietnam Insurance Association.
According to Kenneth Juneau, this is the good news showing that Vietnam's life insurance market has recovered and entered a new development period with firm steps. Currently, the life insurers concentrate on maintaining traditional insurance products and new investment opportunities, he analysed.
As for life insurance firms, the distribution channel via agent network is very significant. In Vietnam, the role of life insurance agents is more important because 4.5% of population has awareness of benefits of insurance. The ratio is too lower as compared with 90% of the world's advanced countries.
Concerning the market prospect, the living quality becomes better so the awareness of important role of insurance has been improved.
Most recently, AIG Life Vietnam recorded a new insurance contract worth up to 10 billion dong.
In short-term, until the end of this year, the association forecasted Vietnamese life insurance market will keep the stable growth rate of 14-16%.
|
| |
|  |
|
Advertising
