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Vietnam Insurance Report Q2 2016

Vietnam Insurance Report Q2 2016

BMI View: Vietnam's insurance sector will expand at a fast pace over the next few years, as robusteconomic growth supports demand for both personal and corporate insurance lines. The market'sdevelopment, and in particular the life insurance sector, has so far been hindered by the low income levelsand disposable household income; however, we are seeing a gradual push towards higher expenditure asthe economy expands and insurers develop products specifically targeted at low-income groups. We alsonote the increase participation of multinationals which are driving innovation and product development.

Sun Life Financial's growing exposure to the market is a case in point and also illustrates a graduallyimproving investment climate. Against this backdrop, we envisage insurance premiums growing at around10% a year through the forecast period to 2020.

Key Updates And Forecasts

Vietnam's non-life insurance sector will outperform the life segment over the next few years, with motorand health/personal accident insurance premiums set to be the main drivers of underwriting activity. Nonlifepremiums will expand by 10.9% on average over 2016-2020 to reach USD2.4bn.

Life premiums will grow at a slightly slower rate of 8.4% a year over the forecast period to reachUSD1.8bn. The share of life premiums to total insurance sales will therefore fall from just under 45% in2015 to 42% in 2020.

Foreign interest in Vietnam's insurance market continues to grow as multinationals look to profit fromrising income levels and the market's relatively low level of development. November 2015 saw Canada'sSun Life Financial increase its stake in its life insurance joint venture with PVI Holdings, PVI SunLife, from 49% to 75%.


BMI Industry View
Table: Headline Insurance Forecasts (Vietnam 2013
2020)
SWOT
Insurance
Industry Forecast
Life Premiums Forecast
Table: Life Premiums (Vietnam 2013
2020)
Table: Life Insurance Claims (Vietnam 2008
2015)
NonLife Premiums Forecast
Table: Non
Life Premiums (Vietnam 20132020)
Table: Non
Life Insurance Claims (Vietnam 20092015)
NonLife SubSector Forecast
Table: Non
Life Insurance Premiums by Product Line (Vietnam 20132020)
Insurance Risk/Reward Index
Asia Pacific Industry Risk/Reward Index
Table: Asia Pacific Insurance Risk/Reward Index Q216
Market Overview
Life Market Overview
The Product Offering
The Competitive Landscape
Table: Life Insurance Market (USDmn) 2008
2013
NonLife Market Overview
The Product Offering
The Competitive Landscape
Table: Non
Life Insurance Market (USDmn) 20082013
Company Profile
AIA Group
American International Group (AIG)
Bao Viet Holdings
Manulife Financial
Prudential plc
PVI Holdings
Sun Life Financial
Methodology
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Indicators
Table: Weighting of Indicators

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