Ms. Than Hien Anh, Chairwoman and CEO of Bao Viet Life, believes the growth being seen in the life insurance market is encouraging for insurers of all persuasions.
2014 continued to be a successful year for sales in the life insurance market thanks to the efforts of insurance businesses to research and understand market demand. According to the Vietnam Insurance Association, total premium revenue last year was estimated at nearly VND28.4 trillion ($1.3 million), up 21.9 per cent compared to 2013. Revenue from new premiums recorded strong growth, at 16.2 per cent compared with 2013.
The result of the positive development in the life insurance market in 2014 in the context of the economic difficulties shows that customers are becoming more interested in life insurance products. This growth created confidence among insurers about market prospects for 2015. The opening up policies of the government, which facilitate foreign companies entering the market, have created competitive pressure not only from market-leading businesses but also from small businesses continuing to increase their market share in recent years. The penetration rate of insurance remains low and the number of insurance policies in the population remains small. This, however, reflects the great potential of the life insurance industry. With increasing literacy in Vietnam I believe the life insurance industry will continue to develop further in the future.
Vietnam is characterized today by its young population and growing middle class. With 5.7 million life insurance policies compared with a population of over 90 million people, it is clear to see that Vietnam’s life insurance market has a great deal of potential. It is understandable that many foreign life insurance companies are investing in Vietnam, creating competition in the life insurance sector.