Non-life insurance hits double-digit growth
Non-life insurance hits double-digit growth
Non-life insurance premiums managed to return to a double-digit growth in the first eight months of 2014, according to preliminary reports of non-life insurance companies to the Insurance Supervisory Authority.
Non-life insurance premiums were reported to be worth nearly VND18 trillion (US$849.05 million), representing a 10-per cent year-on-year increase, reported Dau Tu Chung Khoan (Securities Investment).
This is a positive development for the non-life insurance market following its sharp decline in 2013, considered its hardest year in the past 20 years. Last year, the non-life insurance market grew by only seven per cent, compared with growth rates of 24.5 per cent in 2010, 17.5 per cent in 2011 and 10.5 per cent in 2012.
PetroVietnam Insurance Corporation (PVI) joined Bao Viet Holdings, Bao Minh Insurance Corporation, PJIC and Post&Telecommunications Insurance Jsc (PTI) in the list of the year's top five non-life insurers.
Bao Minh Insurance posted the highest growth of 16.85 per cent among leading insurers while PVI ranked first in market share in the first eight months of the year with 23.97 per cent, followed by Bao Viet Insurance with 19.45 per cent.
The total compensation value of the non-life insurance sector was estimated at VND6.5 trillion ($309.52 million), a 42.4-per cent year-on-year decline.
Four of the five leading insurers had a compensation rate below 37 per cent except for Bao Viet Insurance, which had 48 per cent.
The total compensation for companies in Binh Duong, Dong Nai and Ha Tinh provinces, which were affected by riots last May, was initially estimated at VND2.5 trillion ($119.05 million). Dau Tu Chung Khoan quoted insurance companies as saying compensation was under way and was being carried out in line with the Government's guidance.
According to Viet Nam Insurance Association, insurance companies need to continue restructuring to enhance competitiveness, prevent cut-throat competition and diversify their range of insurance products.
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