Vietnam Life Insurance Market to Grow 11 per cent in 2009-13
Vietnam’s life insurance market will attain rapid growth of 11 per cent a year in 2009-2013 period, the Vietnam News Agency said, citing a the "Vietnam’s Insurance Sector Forecast to 2013” report of Business Wire.
The Dublin-based Business Wire said in its report that Vietnamese life insurance market has expanded rapidly over the past few years, becoming one of the fastest growing markets in the world.
With a population of over 86 million and a penetration rate of foreign insurers estimated low at less than 10 per cent, the life insurance sector has immense growth potential in Vietnam.
Vietnamese people may be reluctant to use life insurance as a saving or investment option.
Such habits, however, are expected to be changed soon as demand for protection against financial losses arising out of major medical treatment expenses, disablement or death of bread winners will continue to rise, according to the Business Wire.
Despite global economic slowdown, Vietnam has been able to attract foreign investments from foreign countries like Japan and South Korea. Several international players are lining up to enter the country.
Regarding non-life insurance market, Business Wire predicted a growth of 24.5 per cent for Vietnam between 2009 and 2013.
Last year, domestic insurance sector incurred total losses of VND163.5 billion although its revenues accounted for 2.2 per cent the country’s GDP, equaling to VND27 trillion.
At present, Vietnam has 11 life insurers, 26 non-life insurers, one re-insurance company (Vinare) and 10 insurance brokerages. (VNA)
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