Vietnam. Trading & Investing Overseas What Insurance Products Are Available In Vietnam? ACE Insurance Company (Vietnam)

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1 Vietnam Trading & Investing Overseas What Insurance Products Are Available In Vietnam?

2 ACE Insurance In Vietnam ACE Insurance received a license to operate a 100% foreign-owned Non-Life insurance company from the Ministry of Finance on Wednesday, November 15 th, 2006 during the APEC Conference held in Hanoi in the presence of Prime Minister Nguyen Tan Dung after having a Representative Office established in Hanoi since ACE Insurance in Vietnam offers a broad range of specialized insurance products including Property; Third-Party Liability & Export Product Liability; Marine Cargo; Energy & Utilities and Financial Lines including Trade Credit & Political Risk as well as Accident & Health; Personal Accident; Critical Illness; Hospital Income; Overseas Student Assistance and comprehensive Travel coverages. In each area of specialty, ACE leverages global expertise and local business acumen to create specific solutions to mitigate client s risk. In Vietnam ACE is focused on establishing strong client relationships by offering responsive service, developing innovative products and providing market leadership built on financial strength. ACE Vietnam s Head Office is in HCMC with a Branch office in Hanoi. 2

3 The Word We Live In Food supply concerns Uncertain, Unstable, Unpredictable Clash of Cultures (Religious, Ethnic, Socio Economic) Growing threat of Civil Unrest Clash of Ideology (Capitalist, Socialist, Anti Globalization) Growing unemployment levels Meltdown of our financial systems and resulting recession / deflation Global Credit Crisis 3

4 Trade Headline figures for the past 5 years Exports increased 122% (26% in 2010) Imports increased 130% (21% in 2010) Only drop was since 1991 was in 2009 Top 3 exporting partners in 2010 United States China Japan Top 3 importing partners in 2010 China South Korea Japan 4

5 Trade Related Exposures Corporate Default Insolvency Delayed Payment Bank Default Letters of Credit Political Risks Sovereign non-payment Currency Inconvertibility/ Non-Transfer 5

6 Trade Risk Mitigation Credit Management Know Your Customer Trade Information Receivables Finance Confirmation of Letters of Credit Trade Credit Insurance A risk mitigation tool, not a means of payment, and covers a buyer s failure to meet its debt obligation on time due to protracted default (slow pay) or insolvency. 6

7 Trade Credit Insurance 7

8 Trade Credit Insurance Policy Types Single Buyer Multi-Buyer Excess of Loss Domestic and/or Export Usually short-term risk <180 days credit risk but can go longer Sale of product & provision of services US$75M per-risk 8

9 Investment Headline figures for the past 5 years Foreign Direct Investment increased 190% (14% drop in 2010) Top 5 investment sources in 2010 Taiwan South Korea Singapore Japan Malaysia Top 5 investment destinations in 2010 Lao PDR Venezuela Cambodia Russia Malaysia 9

10 Investment Risks Political risk relates to the preferences of political leaders, parties, and factions, as well as their capacity to execute their stated policies when confronted with internal and external challenges Source: Integrating Political Risk into Enterprise Risk Management 10

11 Investment Risks Expropriatory Acts Forced Abandonment Political Violence Forced Abandonment Inability to Export/ Import Inability to convert or transfer currency 11

12 Investment Risks 12

13 Investment Risk Mitigation Due Diligence Technical Environmental Social Local Communities Local & National Government Bilateral Investment Treaties (32 in place but with 3 of the top 5 investment destinations) Political Risk Insurance Protects assets and revenues against certain risks of operating internationally 13

14 Corporate Country Risk Insurance Designed for companies with international operations Key features: Simple Affordable Flexible 14

15 Corporate Country Risk Insurance 15

16 Policy Structures Parent Company as Insured Full Value or First Loss Limits Up to US$80,000,000 any one country Policy Period Up to 10 years (3 years is typical) Flexible Loss Calculations 16

17 Long-Term View There are decades where nothing happens; and there are weeks where decades happen. ~V. I. Lenin 17

18 Thank You Mr. Julian Hudson ACE Asia Pacific ACE Insurance Website: