In 6 months of the year, the business situation of non-life insurance companies is generally positive, total premium reached VND 17,662 increased 15.22 % over the same period last year.


In 6 months of the year, the business situation of non-life insurance companies is generally positive, total premium reached VND 17,662 increased 15.22 % over the same period last year. The government also issued Decree No.73/2016/ND-CP dated 01/7/2016 which complete management mode of State on insurance business regarding business conditions, administrative procedures and remove difficulties and problems for insurers.

As far as the insurers’ market shares are concerned, PVI temporarily takes 1st position with the total direct insurance premium written of VND 3,628 billion, increased 8.5%; Baoviet VND 2.985 billion, grew 6.9%; Bao Minh reached VND 1,395 billion, increased 5.5%; PTI VND 1,470 billion, increased 33%; PJICO VND 1,193 billion, grew 9%;

There are many insurance companies that have high growth rate such as Cathay 91%, UIC 66%, BHV 63%, VASS 61%

The rate of compensation ( excluding reserves for losses occurred ) averaged at 30%, down sharply against 2015 ( 65 % ). Compensation reserve for business is VND 4,086 billion. If including claim reserve, the compensation ratio is 54 % .

Motor vehicle insurance reached premium in come of VND 5,842 billion, increased 23.7 %, compensated VND 2,388 billion, claim reserve VND 1,547 billion, compensation ratio 67.3% . The  Ministry of Finance (ISA) cooperates with IAV to amend terms and conditions, tariff of motor vehilce in acordance with Decree No 73.

Health insurance reached premium income of VND 4,246 billion, increased 30.8%, compensation ratio is 45%. Currently the members of the research team are about to complete the standard rules ans condition of health insurance to make it more convenient for the approval of  product registration.

Property & Casualty insurance reached premium of VND 2,882, decreased 7.7%, although revenue fell down compared with the same period last year, but the compensation is only VND 431 billion, claim reserves VND 803 billion, compensation ratio is 42.8%. The Ministry of Finance issued Circular guiding the implementation of compulsory insurance of investment and construction activities.

Fire insurance and property all risk reached premium of VND 1,481 billion, up 20.8%, compensated VND 454 billion, claim reserves VND 482 billion, compensation ratio is 63.2% compared with the compensation ratio of May 6, 2015 was 117%, showing explosive situation has been better controlled. Ministry of Finance guidelines the amendment of Circular 220 of compulsory fire insuarnce in order to solve the difficulties faced by insurers in doing business.

Cargo insurance reach premium of VND 1,058 billion, down 8%, compensated VND 256 billion, VND 286 billion of claim reserves, compensation ratio is 51.2%.

Hull and P &I in surance reached VND 1,168 billion, increased 13%, compensated VND 310 billion, claim reserves of VND 498 billion, compensation ratio is 69.1% which is better than that of 94% of the same period last year.

Other lines including liability insurance gained VND 393 billion, increased 17.9%; aviation insurance gained VND 389 billion, increased 20%; credit and financial risk insurance reached VND 61 billion, down 11%; business interruption insurance reached VND 99 billion, increased 40%.


 In the first 6 months of 2016, life insurance companies focused on reflecting their difficulties and challenges as well as making comments and petitions to legal documents relating to insurance business.

 Specifically, life isnurance companies succeeded in petitioning regulators to solve their difficulties in implementing Decesion No 35/2015/QD-TTg (in which, life insurance products is listed as essential goods which must be registered in accordance with Consumer Protection Act). The problem is resolve at Clause 3 Article 40 Decree 73/2016/NĐ-CP, according to which the handling of registration of life insurance contract forms will be implemented through one-stop shop at the Ministry of Finance. Besides, in order to facilitate the submission for MOF's approval and the registration to MOIT, life insurance companies together commneted for the composing of Uniformed terms, conditions for traditional insurance product, universal life insurance product and health insurance product. In addition, life insurance companies also commented to the content of drafted Decree 73/2016/NĐ-CP which was accepted. As a result, the challenges of life insurers about requirements for doing insurance business and administrative procedure was resolved.

 Life insurers well maintained the cooperation and sel-managed state through the propagation project for life insurance market with the total budget not over VND 2.2 billion. The project aims at raising the awareness of people about the meaning and effect of life insurance to every households, social security as well as to the socio-economy.

 Insurance Association of Vietnam composed and is going to issue Code of conduct for life insurance agents and Regulation on management of staff of credit institutions, branches of foreign credit institutions participating in insurance consultancy/sale basing on the agreement of all member insurers. Those documents set the moral and behavioural standards for life insurance agents to follow, which helps improving the professional reputation of life insurance agent as well as orienting the recognition of the society about life insurance agent as a stable and respectable job.

 Thanks to the cooperation and strict compliance of life insurance companies, in 6 months of 2016, life insurance market maintained remarkable growthrate at 31.6% with total collected premium of VND 21,532 billion; total reserve around VND 111,309 billion; total investment into the economy around VND 136,864 billion.

  1. Number of policies

 In the first 6 months of 2016, total new policies reached 653,458 policies (main product), increased 13% against the same period last year, in which, there were 649,125 individual policies (increased 12.3%) and 4,333 group policies (increased 1,297%), mainly including pension insurance (95%).

Total reinstated policies (main product) were 40.863 policies, up 23%. Total terminated policies were 392,477 policies, increased 17%. 

Total policies in force at the end of the term were 5,910,744 policies, which rose 13% against the same period of 2015. Insurers with high number of policies were Bao Viet Life 1,702,739 policies, Prudential 1,692,523 policies and Manulife 638,319 policies.

 Among 7 forms of main product, endowment insurance (60.1%), investment insurance (31.2%) and term life insurance (7.1%) are the most favoured forms and made the biggest proportion of total policies.

  1. Sum insured

 Total liability level of life insurance companies was VND 1,457 thousand billion, increased 37% against the same period last year, in which, liability level of main policies was VND 977 thousand billion (up 35.5%) and that of riders was VND 481 thousand billion (rose 40%).  Total sum insured of individual policies reached VND 1,423 thousand billion (increased 37%) and that of group polices was VND 34 thousand billion (increased 14%). Insurers with high liability level were Prudential VND 328 thousand billion, Dai-ichi life VND 254 thousand billion and bao Viet Life VND 236 thousand billion.

  1. Premium

 First-year periodical premium in the first 6 months of 2016 was VND 7,192 billion, increased 34.4%. Single paid premium was VND 174 billion, decreased 9%.

 Total new business premium was VND 7,365 billion, up 33%, in which, leading the way were Bao Viet Life with VND 1,561 billion, Prudential with VND 1,477 billion and Manulife with VND 995 billion.

 Total collected premium reached VND 21,532 thousand billion, increased 31.6% against the same period last year, in which, individual policies contributed VND 21,352 thousand billion (increased 31.6%) and group policies contributed VND 180 thousand billion (increased 35%).

 Insurers of highest total collected premium were Bao Viet Life (VND 6,080 billion), Prudential (VND 5,717 billion), Manulife (VND 2,611 billion), Dai-ichi Life (VND 2,083 billion) and AIA (VND 1,980 billion).

  1. Insurance payments

Total benefit payments in the first 6 months of 2016 was VND 6,157 billion, increased 37.5%.

Total insurance payment was VND 4,184 billion, increased 40.2%. Among the insurers with high benefit payments were Prudential with VND 1,613 billion, Bao Viet with VND 1,550 billion  and Manulife with VND 279 billion.

Total payment of cash value due was VND 1,093 billion, increased 40.2%. Prudential had the highest payment of cash value with VND 469 billion, Bao Viet Life paid VND 199 billion and Manulife paid VND 174 billion.

Total policy dividends was VND 880 billion, increased 33.6%, in which, Prudential paid VND 517 billion, Bao Viet Life paid VND 172 billion and Manulife paid VND 171 billion.

  1. Number of agents

The number of newly-recruited agents in the first 6 months of 2016 was 112,769 agents, decreased 5.9%. The insurers which had the largest number of newly-recruited agents were Prudential (25,483 agents), BaoViet Life (21,405 agents), and Dai-ichi (17,858 agents).

Until the end of June 2016, the growth rate of total number of agents in the market was 29.5% with 437,738 agents. The insurers with largest number of agents were Prudential with 181,808 agents, Bao Viet Life with 94,129 agents and Dai-ichi life with 53,811 agents.

That the newly-recruited agents decreased 5.9% while the total agents at the end of June increased 29.5% shows remarkable downward trend in the number of terminated agents.

 Source: IAV