INSURANCE

RESEARCH & TRAINING

CENTER

VIETNAMESE INSURANCE MARKET

Tran Thanh Tu
Deputy Director
Insurance Research and Training Center
Insurance Supervisory Authority of Vietnam

INSURANCE
RESEARCH & TRAINING
CENTER

AGENDA

Market Overview

Insurance Statistics

Market History
Market Performance
Supervisory Agency
Data Collection
Statistics as a supervisory tool

Challenges
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RESEARCH & TRAINING
CENTER

Market Overview

Market History
Prior to 1994

Monopoly of Baoviet
Non-life business only
20 traditional non-life products
Simple and limited insurance cover
Small penetration rate (<0.4%GDP)

From 1994

1994: Bao Minh

1995: Joint stock
1996: Joint venture
1999: 100% foreign owned

* Life insurance: 1995

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RESEARCH & TRAINING
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Market Overview

Market Performance 2005-2009

Market Structure

50
40
30
20
10

7
1
8
16

8
1
7

21

8
1
9

22

10

10

11

11

27

28

2005(32)

2006(37)

Non-life Insurer

2007(40)
Life Insurer

2008(49)
Reinsurer

2009(50)
Broker
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RESEARCH & TRAINING
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Market Overview

Market Performance 2005-2009

Insurance Premiums

1.400

1.343

1.200

1.119

1.000

929
784

800

717

719
576

600
447

428
400

289

497

624
542

432

337

200
2005

2006
Non-life Business

2007
Life Business

5yr CAGR: Non-life 25,62%; Life 9,87%; Total 16,99%

2008

2009

Total Premiums

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RESEARCH & TRAINING
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Market Overview

Market Performance 2005-2009

Insurance Penetration and Density

%GDP
1,70
1,65

2005
9;1,62%

1,60

2007
11;1,54%

1,55

2009
16;1,55%

1,50
1,45

2006
9;1,42%

1,40

2008
13;1,44%

1,35
0

10

15
20
USD per capita

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RESEARCH & TRAINING
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Market Overview

Distribution of non-life GWP by line of business

Business Interruption,
0.21%

Financial Risks, 0.06%

Agriculture, 0.01%

General Liability,
2.51%

Hull and P&I, 11.49%

Health and Personal

Accident, 14.33%

Fire, 5.95%

Property and Casualty,

23.19%

Motor Vehicle, 31.67%

Cargo, 7.34%
Aviation, 3.24%

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RESEARCH & TRAINING
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Market Overview

Distribution of life NB by line of business

Whole life, 0.70%

Investment-linked,
30.16%

Pure Endowment,
0.07%
Term life, 2.57%

Annuity, 0.18%
Endowment,
66.31%

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Market Overview

Investment Portfolio in 2009

Grand Total

3.521

1.016

2.505

50
42
8

Others
Investment Trusts

Lendings

138
136
255
250

Real Estate

26
26
-

Life

Non-life

Total

134
114
20

Capital Contribution
Shares, Unsecured Bonds

99

Secured Corporate Bonds

31
16
15

Government Bonds

43

Deposits

398
299

1.478
1.434
534
477

500

1.011

1.000

1.500

2.000

2.500

3.000

3.500

4.000 9

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RESEARCH & TRAINING
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Prior to 1992

BaoViet

Legal Division

Supervisory Agency
1992-2003

2003-2008

Ministry of
Finance

Ministry of
Finance

Department of Banking
and
Financial Institutions

Insurance
Department

Insurance
Division

Legal

Non-life

Life

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RESEARCH & TRAINING
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Supervisory Agency
Current
Ministry of
Finance

Insurance
Supervisory Authority

Cabinet

Market
Development

Life

Non-life

Intermediaries

Center
of
Research
and
Training

Inspectorate

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RESEARCH & TRAINING
CENTER

Insurance Statistics

Sources of Data

Reports from/about insurers/brokers

Audited Financial Statements

Statistical reports

Monthly reports: insurance premiums by line of business

Quarterly reports: GWP, NWP, policies, claims/payouts, reserves, investments,
solvency; agents
Annual reports: quarterly reports and ASEAN reports, investors report

Insurance Supervisory Ratios: yearly report as early warning indicators

Ad hoc reports
On-site visiting reports
Project outputs

Publications from the Insurance Association of Vietnam and other

domestic organizations/agencies
Publications from international counterparts, IAIS, and organizations

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RESEARCH & TRAINING
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Insurance Statistics

Statistics as a supervisory tool

High level: Regulation

Understanding the market development stage

Policies/rules formulation and application

Low level: Supervision

Historical review and peer review

Off site planning
Early warning

Statistics NOT tell you something

BUT so many things!
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RESEARCH & TRAINING
CENTER

Insurance Statistics

Challenges (both insurers & supervisor)

Data Collection:

Issues of Quality: Accuracy, Completeness,

Consistency, Timeliness, and Auditability

Data Storage, Processing, and Use:

Issues of IT infrastructure, human resource,

openness

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RESEARCH & TRAINING
CENTER

Thank you
for your attention!

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