11/05/2010 - 12:52:05 VIETNAM: STRONG GROWTH FORECAST FOR INSURANCE SECTOR
The Vietnamese insurance industry is expected to expand at 15% annually in the next decade to 2020, reports the Vietnam News Service, citing a senior government official.
Trinh Thanh Hoan, Head of the Ministry of Finance's Insurance Management and Supervision Agency, speaking at an international conference last week, said that the insurance market had developed strongly in recent years. Despite the global financial crisis, the sector enjoyed 20% growth last year, collecting total premium income of VND25.2 trillion (US$1.32 billion), he said.
Vietnam represents a market of more than 86 million consumers of whom only around six million have insurance, says Mr Hoan. Furthermore, import-export, property, and other non-life insurance coverage remains modest at present, offering insurers plenty of opportunities.
To achieve growth targets, insurers should focus on developing human resources, especially at the managerial level. A shortage of managers plagues most Vietnamese insurance companies, he says. Insurers should cooperate with universities, insurance research agencies and foreign partners to organise training courses for their staff.
Viet Nam has 50 insurance players, comprising 11 life insurers, 28 non-life insurers, one reinsurer and 10 insurance brokers.
