Thuy Trieu and Thai Hang
Export credit market in difficulty
Speaking at a seminar on the local insurance market in HCMC on Thursday, Loc said the non-life insurance segment had grown at an annual rate of 19.5% while the life insurance segment had achieved 26.8% annual growth since 1999.
This year the association has estimated total life insurance premiums at over VND21 trillion, a 15% year-on-year rise, while non-life insurance is expected to rise 10% to VND25 trillion.
In 1993, when the insurance market started burgeoning in the country, insurance premiums accounted for 7% of gross domestic product (GDP) and the percentage this year is projected at 2%.
The financial capabilities of insurance firms have improved. In 1993, the total equity of insurance firms was VND145 billion and last year the figure jumped to over VND36.4 trillion.
Thanks to positive growth, the local market remains attractive to insurance enterprises.
Jack Howell, general director of Prudential Vietnam, said Vietnam has a large population but the number of life insured people is much lower than in regional countries such as the Philippines and Thailand.
This offers a window of opportunity for insurers. Statistics show the proportion of life insurance policy holders could increase on rising incomes, he said.
The local insurance market is small but has bright prospects in the future. Prudential has 2.5 million customers in Vietnam and is optimistic about the market, Howell said.
* Insurers have had trouble finding corporate customers for export credit insurance as they are not familiar with the product.
Speaking on the sidelines of the export credit insurance product launching ceremony in HCMC on Thursday, Huynh Thi My, general secretary of the Vietnam Plastic Association, said the industry has over 1,800 enterprises which generated export revenue of over US$1.9 billion last year. However, just a small number of them have learned about or intend to buy export credit insurance.
A representative of an insurance firm said his enterprise has reached just a few new customers who are domestic exporters since early this year. Most clients are foreign branches, partners and enterprises who are requested to buy export credit insurance.
According to the Vietnam Insurance Association, only around 10 export credit insurance contracts are signed a year.
Đăng ký: VietNam News
