In the face of economic crisis, the life insurance sector still reapedbenefits from foreign insurer contributions last year and is expected tocontinue its development in 2012.
Lam Hai Tuan, director generalof ACE Life Vietnam, said that the while the financial market will facemany new impediments this year, correct exploitation and managementcould still see insurers grow.
The Vietnamese life insurancemarket looks promising due to only 5 percent of the total populationbeing dependent on it alongside strong economic growth and increasingdemand.
According to the Association of Vietnamese Insurers,despite high inflation and interest rates, coupled with economicdifficulties last year, the life insurance sector still reached a totalpremium value of 16 trillion VND (762 million USD), a year-on-yearincrease of 17 percent.
Phung Dac Loc, the association secretarygeneral, explained the sector's solid growth rate: "When the idle moneyof residents is made redundant and investment channels in the securitiesand property markets are unattractive, saving for the future generatedconditions for life insurance market development."
Spotting thepotential, Italy's General Life Insurance and Vietinbank Aviva LifeInsurance, a joint venture between Vietinbank and the UK's Aviva Group,tapped into the market last year.
There are currently 14 lifeinsurance firms in Vietnam and, except for Bao Viet Insurance, the onlylocal company, the remainder is dominated by foreign-investedenterprises, assuring a balanced non-life insurance sector with foreignbusinesses accounting for about 41 percent.
Experts said that foreign insurers have made a great contribution to the development of the general and life insurance markets.
"Lookingback one decade, life insurance companies have mobilised great capitalresources from residents to reinvest into the economy," said Huynh ThanhPhong, executive director of the AIA Group in the region and chairmanof the management board of AIA Vietnam.
The development of thefinancial market depends on three pillars: banking, insurance andsecurities. International insurers play a significant role in thedevelopment of the Vietnamese insurance market, he said.
Internationallife insurance firms reaped good results last year. For instance,Prudential Vietnam got 1.8 million new deals with a total premium of1.45 trillion VND (69 million USD).
AIA Vietnam signed 592,000 insurance policies with a combined premium of 426 billion VND (20.3 million USD).
ACE Life Vietnam inked more than 149,000 deals with a total premium of 67.3 billion VND (3.03 million USD).
Dai-Ichi Life Vietnam signed more than 487,000 policies with a combined premium of 460 billion VND(21.9 million USD)./.
Lam Hai Tuan, director generalof ACE Life Vietnam, said that the while the financial market will facemany new impediments this year, correct exploitation and managementcould still see insurers grow.
The Vietnamese life insurancemarket looks promising due to only 5 percent of the total populationbeing dependent on it alongside strong economic growth and increasingdemand.
According to the Association of Vietnamese Insurers,despite high inflation and interest rates, coupled with economicdifficulties last year, the life insurance sector still reached a totalpremium value of 16 trillion VND (762 million USD), a year-on-yearincrease of 17 percent.
Phung Dac Loc, the association secretarygeneral, explained the sector's solid growth rate: "When the idle moneyof residents is made redundant and investment channels in the securitiesand property markets are unattractive, saving for the future generatedconditions for life insurance market development."
Spotting thepotential, Italy's General Life Insurance and Vietinbank Aviva LifeInsurance, a joint venture between Vietinbank and the UK's Aviva Group,tapped into the market last year.
There are currently 14 lifeinsurance firms in Vietnam and, except for Bao Viet Insurance, the onlylocal company, the remainder is dominated by foreign-investedenterprises, assuring a balanced non-life insurance sector with foreignbusinesses accounting for about 41 percent.
Experts said that foreign insurers have made a great contribution to the development of the general and life insurance markets.
"Lookingback one decade, life insurance companies have mobilised great capitalresources from residents to reinvest into the economy," said Huynh ThanhPhong, executive director of the AIA Group in the region and chairmanof the management board of AIA Vietnam.
The development of thefinancial market depends on three pillars: banking, insurance andsecurities. International insurers play a significant role in thedevelopment of the Vietnamese insurance market, he said.
Internationallife insurance firms reaped good results last year. For instance,Prudential Vietnam got 1.8 million new deals with a total premium of1.45 trillion VND (69 million USD).
AIA Vietnam signed 592,000 insurance policies with a combined premium of 426 billion VND (20.3 million USD).
ACE Life Vietnam inked more than 149,000 deals with a total premium of 67.3 billion VND (3.03 million USD).
Dai-Ichi Life Vietnam signed more than 487,000 policies with a combined premium of 460 billion VND(21.9 million USD)./.
