Property Insurance Became the Largest Category in Vietnamese Non-Life Insurance Segment in 2011, Finds Timetric
16 Oct 2012 • by Natalie Aster
The Vietnamese non-life insurance segment was supported by the country’s robust economic growth, expanding automobile industry, and increasing middle-class population. In 2012–2016, the growth of the non-life insurance segment will be driven by the development of the country’s automobile, real estate and construction industries. These industries will require innovative non-life insurance products to aid their expansion, creating a larger customer base for non-life insurers. Property insurance was the largest category in the Vietnamese non-life insurance segment in 2011, followed by motor insurance.
According to the report “Reinsurance in Vietnam, Key Trends and Opportunities to 2016” by Timetric, Vietnam is one of the fastest-growing economies in Southeast Asia, indeed the Vietnamese economy is expected to grow at a faster rate than both India and China over the forecast period. According to an International Monetary Fund (IMF) forecast, the Vietnamese economy will record an annual real GDP growth rate of 6.3% in 2012, after achieving a growth of 5.8% in 2011. Vietnam’s economic growth is expected to increase the finance available to both corporations and individuals, which will enable more citizens to purchase non-life coverage.
Reinsurance in Vietnam, Key Trends and Opportunities to 2016
Published: September, 2012
Price: US$ 1.950,00
Despite the adverse impact of the global economic crisis, Vietnam registered sustained economic growth during the review period. The country recorded a simultaneous rise in the size and purchasing power of its middle-class population. Consequently, per capita annual disposable income levels increased during the review period, a situation which is expected to continue over the forecast period. A rise in purchasing power is likely to positively impact automobile and property purchases, creating a higher demand for non-life insurance products such as property and motor insurance.
The Vietnamese non-life insurance segment grew at a CAGR of 26.1% during the review period, after recording an annual growth rate of 18% in 2011. As a percentage of GDP, the Vietnamese non-life segment measured 0.7%, providing scope for growth. Less than 10% of the Vietnamese population own insurance products, which indicates the size of the nation’s growth potential.
The minimum capital requirements for non-life insurance companies increased during the review period. The new standards made it difficult for small insurance companies to enter the Vietnamese insurance industry yet encouraged large multinationals. This situation is expected to lead to a period of consolidation, as many small insurance companies will be acquired by multinational firms or exit the segment entirely.
More Studies on Insurance in Belgium by Timetric Include:
- Life Insurance in Vietnam, Key Trends and Opportunities to 2016
- Non-Life Insurance in Vietnam, Key Trends and Opportunities to 2016
- Personal Accident and Health Insurance in Vietnam, Key Trends and Opportunities to 2016
More new market research reports by can be found at Timetric page.
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