viet insurance market overview

8/13/2019 Viet Insurance Market Overview

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INSURANCE

RESEARCH & TRAINING

CENTER

1

VIETNAMESE INSURANCE MARKET

Tran Thanh Tu

Deputy DirectorInsurance Research and Training Center

Insurance Supervisory Authority of Vietnam



INSURANCE

RESEARCH & TRAINING

CENTER

2

Market Overview

– Market History

– Market Performance – Supervisory Agency

Insurance Statistics

– Data Collection

– Statistics as a supervisory tool

Challenges

AGENDA



INSURANCE

RESEARCH & TRAINING

CENTER

3

Market History

– Monopoly of Baoviet

– Non-life business only

– 20 traditional non-life products

– Simple and limited insurance cover

– Small penetration rate (<0.4%GDP)

Prior to 1994

Market Overview

From 1994

1994: Bao Minh

1995: Joint stock

1996: Joint venture

1999: 100% foreign owned

* Life insurance: 1995



INSURANCE

RESEARCH & TRAINING

CENTER

4

Market Structure

Market Performance 2005-2009

16

817

21

71

8

22

9

18

27

11

1

10

28

11

1

10

-

10

20

30

40

50

2005(32) 2006(37) 2007(40) 2008(49) 2009(50)

Non-life Insurer Life Insurer Reinsurer Broker

Market Overview



INSURANCE

RESEARCH & TRAINING

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5

Market Overview

5yr CAGR: Non-life 25,62%; Life 9,87%; Total 16,99%

289

428

717

337

447

784

432497

929

576542

1.119

719

624

1.343

-

200

400

600

800

1.000

1.200

1.400

2005 2006 2007 2008 2009

Non-life Business Life Business Total Premiums

Insurance Premiums




INSURANCE

RESEARCH & TRAINING

CENTER

6

Market Overview

Insurance Penetration and Density


2005

9;1,62%

2007

11;1,54%

2009

16;1,55%

2006

9;1,42%

2008

13;1,44%

1,35

1,40

1,45

1,50

1,55

1,60

1,65

1,70

0 5 10 15 20

USD per capita

%GDP



INSURANCE

RESEARCH & TRAINING

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7

Distribution of non-life GWP by line of business

Market Overview

Fire, 5.95%

Motor Vehicle, 31.67%

Aviation, 3.24%

Cargo, 7.34%

Property and Casualty,

23.19%

Financial Risks, 0.06%

Health and Personal

Accident, 14.33%

Business Interruption,

0.21%

Agriculture, 0.01%

Hull and P&I, 11.49%

General Liability,

2.51%



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RESEARCH & TRAINING

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8

Distribution of life NB by line of business

Market Overview

Pure Endowment,

0.07%

Investment-linked,

30.16%

Annuity, 0.18%

Endowment,

66.31%

Whole life, 0.70%

Term life, 2.57%



INSURANCE

RESEARCH & TRAINING

CENTER

9

Investment Portfolio in 2009

Market Overview

477

1.434

15

299

20

-

250

1

8

2.505

534

43

16

99

114

26

5

136

42

1.016

1.011

1.478

31

398

134

26

255

138

50

3.521

- 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000

Deposits

Government Bonds

Secured Corporate Bonds

Shares, Unsecured Bonds

Capital Contribution

Real Estate

Lendings

Investment Trusts

Others

Grand Total

Life Non-life Total



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RESEARCH & TRAINING

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10

Supervisory Agency

Prior to 1992

BaoViet

Legal Division

1992-2003

Ministry of

Finance

Insurance

Division

Department of Banking

and

Financial Institutions

2003-2008

Ministry of

Finance

Insurance

Department

Legal Non-life Life



INSURANCE

RESEARCH & TRAINING

CENTER

11

Ministry of

Finance

Insurance

Supervisory Authority

Non-life Intermediaries

Center

of

Research

and

Training

Cabinet Inspectorate

Market

Development Life

Current

Supervisory Agency



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RESEARCH & TRAINING

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12

Sources of Data

– Reports from/about insurers/brokers

Audited Financial Statements

Statistical reports

– Monthly reports: insurance premiums by line of business

– Quarterly reports: GWP, NWP, policies, claims/payouts, reserves, investments,

solvency; agents

– Annual reports: quarterly reports and ASEAN reports, investor’s report

Insurance Supervisory Ratios: yearly report as early warning indicators

Ad hoc reports

On-site visiting reports

Project outputs

– Publications from the Insurance Association of Vietnam and other

domestic organizations/agencies

– Publications from international counterparts, IAIS, and organizations




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13

Statistics as a supervisory tool

– High level: Regulation

Understanding the market development stage

Policies/rules formulation and application

– Low level: Supervision

Historical review and peer review Off site planning

Early warning


Statistics NOT tell you something

BUT so many things!



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RESEARCH & TRAINING

CENTER

14

Data Collection:

– Issues of Quality: Accuracy, Completeness,

Consistency, Timeliness, and Auditability

Data Storage, Processing, and Use:

– Issues of IT infrastructure, human resource,

openness

Challenges (both insurers & supervisor)




INSURANCE

RESEARCH & TRAINING

CENTER

15

Thank youfor your attention!

viet insurance market overview

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