VIETNAMESE INSURANCE MARKET

Transcription

1 VIETNAMESE INSURANCE MARKET Tran Thanh Tu Deputy Director Insurance Research and Training Center Insurance Supervisory Authority of Vietnam 1

2 AGENDA Market Overview Market History Market Performance Supervisory Agency Insurance Statistics Data Collection Statistics as a supervisory tool Challenges 2

3 Market Overview Market History Prior to 1994 Monopoly of Baoviet Non-life business only 20 traditional non-life products Simple and limited insurance cover Small penetration rate (<0.4%GDP) From : Bao Minh 1995: Joint stock 1996: Joint venture 1999: 100% foreign owned * Life insurance:

4 Market Overview Market Performance Market Structure (32) 2006(37) 2007(40) 2008(49) 2009(50) Non-life Insurer Life Insurer Reinsurer Broker 4

5 Market Overview Market Performance Insurance Premiums Non-life Business Life Business Total Premiums 5yr CAGR: Non-life 25,62%; Life 9,87%; Total 16,99% 5

6 Market Overview Market Performance %GDP Insurance Penetration and Density 1,70 1,65 1,60 1,55 1, ;1,62% ;1,54% ;1,55% 1,45 1, ;1,42% ;1,44% 1, USD per capita 6

7 Market Overview Distribution of non-life GWP by line of business Agriculture, 0.01% Hull and P&I, 11.49% Business Interruption, 0.21% Financial Risks, 0.06% Health and Personal Accident, 14.33% General Liability, 2.51% Fire, 5.95% Property and Casualty, 23.19% Motor Vehicle, 31.67% Cargo, 7.34% Aviation, 3.24% 7

8 Market Overview Distribution of life NB by line of business Whole life, 0.70% Pure Endowment, 0.07% Investment-linked, 30.16% Term life, 2.57% Annuity, 0.18% Endowment, 66.31% 8

9 Market Overview Investment Portfolio in 2009 Grand Total Others Investment Trusts Lendings Real Estate Life Non-life Total Capital Contribution Shares, Unsecured Bonds Secured Corporate Bonds Government Bonds Deposits

10 Supervisory Agency Prior to BaoViet Ministry of Finance Ministry of Finance Department of Banking and Financial Institutions Insurance Department Legal Division Insurance Division Legal Non-life Life 10

11 Supervisory Agency Current Ministry of Finance Insurance Supervisory Authority Center of Research and Training Cabinet Market Development Life Non-life Intermediaries Inspectorate 11

12 Insurance Statistics Sources of Data Reports from/about insurers/brokers Audited Financial Statements Statistical reports Monthly reports: insurance premiums by line of business Quarterly reports: GWP, NWP, policies, claims/payouts, reserves, investments, solvency; agents Annual reports: quarterly reports and ASEAN reports, investor s report Insurance Supervisory Ratios: yearly report as early warning indicators Ad hoc reports On-site visiting reports Project outputs Publications from the Insurance Association of Vietnam and other domestic organizations/agencies Publications from international counterparts, IAIS, and organizations 12

13 Insurance Statistics Statistics as a supervisory tool High level: Regulation Understanding the market development stage Policies/rules formulation and application Low level: Supervision Historical review and peer review Off site planning Early warning Statistics NOT tell you something BUT so many things! 13

14 Insurance Statistics Challenges (both insurers & supervisor) Data Collection: Issues of Quality: Accuracy, Completeness, Consistency, Timeliness, and Auditability Data Storage, Processing, and Use: Issues of IT infrastructure, human resource, openness 14

15 Thank you for your attention! 15