Life insurance market forecast to grow 15 percent

Vietnam ’s life insurance market is promising in spite of recent ups and downs, said Lam Tuan Hai, General Director of ACE Life, while talking about ACE Life’s impressive growth of 131 percent in Vietnam in the first six months of this year.

Realising the potential of Vietnam ’s life insurance market, many foreign insurers have launched investment activities in Vietnam such as setting up companies or rep. offices and changing trademarks.

In mid-July, the Republic of Korea ’s leading life insurance company, Samsung, marked its debut in Vietnam by opening a rep. office in Hanoi . It is working to map out a strategy to penetrate into the Vietnamese market.

The RoK Life Insurance Company, a member of the Han Wha Group, has been licensed to set up a rep. office in Ho Chi Minh City , which is expected to make debut in the first quarter of next year.

Cathay Life, Taiwan ’s largest life insurer, also put into operation a subsidiary company in Vietnam with a chartered capital of 600 billion VND (36 million USD). Cathay Vietnam General Director Peter Lai said it is time to invest in the Vietnamese insurance market, especially life, accident, annual allowance, health and investment risk insurances.

AIA Vietnam, a big name in the local life insurance market, has changed its name to AIG Life Vietnam in order to create a new kick-off for its long-term development strategy in the country.

Up to the present, nine foreign businesses have involved in the Vietnamese life insurance market and the number is expected to swell in 2009, revealed Deputy Finance Minister Tran Xuan Ha.

In the first half of 2008, the total revenue from life insurance premium exceeded 5 trillion VND (303 million USD), up 13.6 percent over the same period last year.

According to the Vietnam Insurance Association, the local people’s improved living conditions and businesses’ service diversification will speed up the development of the insurance market, which is forecast to enjoy a 15 percent growth rate this year.

VNN

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