Several non-life insurance companies in Vietnam have reported profit increases of over 40% in the first quarter of 2024.
Global credit rating agency AM Best says that it expects Vietnam National Reinsurance Corporation (VINARE) to continue delivering strong operating performance, supported by favourable underwriting performance and robust investment income.
In 2022, the Law on Insurance Businesses No 08/2022/QH15 came into effect, following the commitment agreed upon in the EU-Vietnam Free Trade Agreement in 2020, according to the Insurance Supervisory Authority (ISA) of Vietnam.
Vietnam's total insurance premium revenue in the first quarter of 2024 continued to decrease, falling for the fourth consecutive quarter, according to data from the General Statistics Office.
Saline intrusion and drought in the Mekong Delta region of Vietnam could cause $2.82bn in agricultural losses over a 10-year period according to a recent survey.
PVI Insurance Corporation (PVI Insurance), Vietnam's biggest general insurer, has strong operating performance, supported by its five-year average return-on-equity ratio of 17.9% (2019-2023), according to AM Best.
The operating performance of Hanoi Reinsurance Joint Stock Corporation (Hanoi Re) is assessed as strong, supported by its five-year average return-on-equity ratio of 16.6% (2019-2023), says AM Best.
In early 2023, the prime minister of Vietnam's Decision 07/QD-TTg was issued, approving the strategy to develop the insurance market in the country until 2030. The application of technology in the insurance industry was covered in the document, with the prime minister requesting the formation of a regulatory sandbox in order to encourage companies to develop new digital products and services.
A change in Vietnam law pertaining to the distribution and purchase of insurance products through the bancassurance channel is expected to constrain sales growth over the near term, more so for the life sector than for non-life business, according to a new AM Best report.
The year 2024 will see many positive changes in the insurance market, said Vietnam Insurance Association (VIA) deputy secretary-general Ngo Trung Dung, commenting on the industry's expectations and direction in 2024.