Vietnam Insurance Market Continues to Grow Strongly

 “Vietnam insurance market will continue its strong growth in the coming years” says A.M.Best (Hong Kong) at the seminar “Succeeding in Emerging Insurance Markets: Focus on Vietnam” recently held in Hanoi.

 

According to the report by A.M.Best, Vietnam’s financial market has continued to liberalise since its entry into the World Trade Organization (WTO) in 2007. The nation’s demographic and economic developments have fuelled demand for insurance that has led to the rapid growth of the industry in recent years, with total written premiums increasing by about 20 percent per annum. However, the industry today is still underdeveloped and facing widespread challenges ranging from intense competition to inflationary pressures. As set out in a recent announcement by the Ministry of Finance, the government will begin to restructure the insurance sector into four main categories this year, aimed at promoting both the healthy future development of the sector and overall financial market stability in Vietnam.

 

Vietnam insurance market has enjoyed two-digit growth and A.M.Best forecast that Vietnam will maintain this rapid development. The middle class is growing and becoming more aware of the benefits of insurance. Currently, 14 life insurers and 29 non-life ones are operating in Vietnam.