With the new launch of HD Insurance, an insurance company from Germany also expects to be put into operation in the next quarter. The continuous penetration of new members has made the Vietnam non-life insurance market fiercer.
On May 19th, HD Insurance Co., Ltd Was officially established and licensed to operate, becoming the 67th insurance company in the market. Excluding the group of insurance brokers, HD Insurance is the first business to be established after the participation of OPES (an associate company of Vietnam Prosperity Commercial Joint Stock Bank (VPBank) in 2018.
As announced, the charter capital of HD Insurance is 1.8 trillion dong a high level in the sector.
According to analysts, with a fairly large source of capital, HD Insurance can quickly develop many products and will initially serve customer groups of HCM City Development Commercial Joint Stock Bank (HDBank) with products such as property insurance, aircraft insurance, etc. Through banking channel, the company can sell products associated with loans or other retail products such as human insurance, etc.
To prepare for the launch, a few months ago, HD Insurance has intensely sought personnel for its departments. It is known that the company’s Chairwoman of the Member board is Nguyen Thi Phuong Thao, general director is Pham Khac Dung, both of them are familiar names in the banking-insurance industry in Vietnam.
Previously, in early 2019, German giant insurance group Allianz announced the plan to participate in non-life insurance field in Vietnam through a digital joint venture (JV) established with the cooperation of FPT Group.
As a strategic technology partner, FPT will support Allianz in developing advanced products and services, meeting the protection needs of customers.
According to experts, Vietnam is one of the fastest growing economies in Asia, with a non-life insurance market forecasted to have strong growth. Along with the high penetration of the Internet and smart mobile devices, Vietnam is well suited to increase the assess to digital insurance solutions of consumers.
This is also the reason why Allianz decided to join the Vietnam’s insurance market in an effort to expand its influence in Asia.
Up to now, Vietnam’s non-life insurance market has 67 companies and nearly 60 percent of the market share is in the hands of the Top 5 businesses, including Bao Viet, PVI, PTI, Bao Minh, and PJICO. The market competition is always extremely fierce, particularly in the retail segment with two main products being motor vehicle insurance and human insurance.
In recent years, the competition is not only in the Top 5 companies with largest market share, but is also in the lower group companies such as MIC, VBI, ABIC, BSH, Samsung Vina, VNI, VASS, etc., thanks to the rapid growth rate.
With a flexible development strategy, observers believe that the market share from these businesses will continue to increase sharply in the future.
In fact, companies in the lower group all have the ambition to drastically change their market share by targeting the Top 5 positions.
Despite over 20 years of operation, for foreign insurance and financial groups, the Vietnam’s non-life insurance market is still in an early stage of development so the potential for exploitation remains great. Therefore, they are always looking for opportunities to enter the market, despite that the number of existing members is already high and the competition is very harsh.
