The report of BIDV Securities Company (BSC) forecasted that the non-life insurance industry will continue to be supported by the stable macroeconomic growth. According to BSC, Vietnam still has high growth potential for non-life insurance field for three reasons.
Firstly, the country has a young population structure and average income growth is seven percent per annum. Secondly, the rate of using non-life insurance in Vietnam remains low (1.3 percent compared to the three to four percent in the group of developing markets). Thirdly, the life insurance premium per person is low (21 US dollars per person compared to the 70 US dollars per person in developing markets).
BSC predicted that Vietnam will continue to maintain a stable economy. Although the growth may slow down, the growth rate will still be high compared to the region and the world. The Gross Domestic Product (GDP) growth is expected at 6.5 6.6 percent with main contribution from personal consumption and Foreign Direct Investment (FDI) firms; while the Consumer Price Index (CPI) is 3.5%.
In 2019, the non-life insurance market grew by 11.6%. According to statistics of the General Statistical Office (GSO), by December 20th, the orginal insurance premium revenue reached 109.871 trillion dong, up by 20%, in which the original premium revenue of non-life insurance segment reached 52.132 trillion dong, up by 11.6%. Considering market share, Bao Viet currently the leader with 22 percent of market share, followed by PVI (15.2%) and PTI (10.1%). Other businesses account for a small rate of about five percent.
