Vietnam insurance market trends 2H 2022

Vietnam insurance market bulletin in the first half of 2022, the overview of Vietnam insurance, life insurance, and non-life insurance, where are the development prospects for 2023?


Source: Free Pics


Vietnam's insurance market changed drastically after Covid-19.


According to synthetic of the Vietnam Insurance Association (IAV), the total Vietnam insurance revenue in the first six months of 2022 is estimated at 118,915 billion VND, up 15.4 percent over the same period in 2021. In this synthetic, the non-life insurance revenue is estimated at 34,448 billion VND, up 14.51 percent over the same period in 2021, and the life insurance revenue was estimated at 84,467 billion VND, up 15.7 percent over the same period 2021.


Mr. Dung, Deputy General Secretary of IAV, said that from 2011 - 2019, the market has always kept a stable growth momentum, there are some years over 30 percent. By 2019, the market dropped to 21-22 percent. In 2020 it dropped below 20 percent a bit. From 2021 is expected to continue to decrease and is expected to grow at about 10 percent and this rate is forecasted by the Ministry of Finance (MOF) will increase to 15 percent by 2025.

In terms of operations, health insurance (11,138 billion VND, accounting for 32.33 percent) accounted for the largest proportion of total revenue, followed by motor vehicle insurance (9,399 billion VND, accounting for 27,29 percent), fire and explosion insurance (4,578 billion VND, accounting for 13.29 percent), property insurance, and damage insurance (4,348 billion VND, accounting for 12.62 percent).




Original insurance claim: The estimated actual amount of original insurance claim of the non-life market in the first 6 months of 2022 is 9,832 billion VND, the actual rate of original insurance claim is 28.54 percent; lower than the actual rate of original insurance claims in the same period in 2021 (32.29 percent).


Big profit non-life insurance


In the first 6 months of 2022, it is estimated that the total primary insurance premium revenue of the non-life market will reach 34,448 billion VND, a record number, up 14.51 percent over the same period in 2021. Leading the way is revenue The highest principal cost is PVI, revenue is estimated at 5,467 billion VND, up 19.73 percent, accounting for a market share of 15.87 percent. Followed by Bao Viet with a market share of 13.77 percent; PTI holds a market share of 9.89 percent; MIC accounts for 7.50 percent market share; Bao Minh holds a market share of 7.32 percent.

In terms of health insurance business, accounting for 32.33 percent; motor vehicle insurance accounted for 27.29 percent; fire and explosion insurance accounted for 13.29 percent; property insurance and damage insurance accounted for 12.62 percent.


Life insurance before the new wind


Mr. Ngo Viet Trung, Director of the Insurance Management and Supervision Department, MOF, said that Vietnam's population is in the golden age. It is an opportunity to develop many life insurance products such as mixed insurance, universal life insurance, and retirement insurance...; Besides, economic development, investment in new construction is increasing, and the circulation of trade between localities and countries is increasing, creating many opportunities for the development of non-personal insurance products. longevity.


Total new insurance premium revenue reached 25,111 billion VND, down 2.3 percent over the same period last year. Investment-linked insurance accounted for the largest proportion, reaching 86.7 percent of new fee revenue. Compared to the same period last year, new revenue from investment-linked insurance increased by 2.2 percent, while other services decreased. This shows that buyers are more and more interested in profitable investments.


The number of valid policies reached 13,696,522 contracts, up 6.3 percent over the same period in 2021. Total life insurance premium revenue reached 84,467 billion VND, up 15.7 percent over the same period in 2021. This shows that our country's insurance industry, with the impact of technology, has made expected improvements.


Especially, investment-linked insurance has a record number of mining contracts in the first 6 months of 2022, with 1,628,548 contracts, accounting for the largest proportion with 71.9 percent. In addition, the support revenue contributes 10 percent of the total fee revenue of the whole market.


Insurance brokerage made a big contribution: Total insurance brokerage commission loss in 6 months of 2022 reached 568 billion VND (up 5.4 percent over the same period last year), of which the original insurance brokerage commission loss reached 451 billion VND (up 5.6 percent), reinsurance brokerage commission reached 117 billion VND (up 8.2 percent).


The main trend of the insurance market that “in danger lies in opportunity”


The Vietnam insurance market is increasingly joined by large and small businesses. Unlike in the past, when there was only traditional insurance, today there are also digital insurance options. Featured with investment-linked insurance. Although it has just appeared, it has caused a storm to make investors and family members profitable. It can be said that this is a "favorable time" opportunity for this type of insurance to develop.


Clear regulations on Vietnam's insurance ancillary services, it has created a favorable, transparent, and clear legal environment, promoting a healthy competitive environment between organizations providing insurance ancillary services. domestic and foreign insurance, and at the same time will attract foreign investors to provide insurance ancillary services for insurance business activities in Vietnam.


Source: Vietnam Insurance Association

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