VietNamNet Bridge - Last year was a prosperous one for life insurance companies, with impressive growth of 37 percent, a record 10-year rate.

Tien Phong cited a report of the Ministry of Finance as reporting that the total life insurance premiums in the first 10 months of 2016 reached VND38.839 trillion, an increase of 30.62 percent over the same period the year before. Bao Viet Nhan Tho and Prudential remain the two biggest players in the market.

Prudential is still leading the market in terms of total insurance premiums. However, if considering new premiums, Bao Viet Nhan Tho, the only Vietnamese owned insurer in the market, has jumped to the first position.

Amid the strong rise of Bao Viet Nhan Tho, stabilizing its personnel, regaining robust growth and staying in the first position, Prudential’s new ‘captain’ in 2017 faces challenges. 

Besides Prudential and Bao Viet Nhan Tho, Dai-ichi Life Vietnam and AIA Vietnam have also been chasing each other for many years. However, Dai-ichi Life made a bigger leap in 2016 than its rival with high premium growth rate of 50 percent compared with 2015. The figure was 14.4 times higher than 2007, when it set foot in Vietnam.

Last year was a prosperous one for life insurance companies, with impressive growth of 37 percent, a record 10-year rate.

If considering the new insurance premiums, Dai-ichi Life Vietnam has nearly caught up with Manulife Vietnam, which holds the third largest market share. Dai-ichi Life Vietnam has seen its network expand rapidly with nearly 200 offices throughout the country.

Some analysts have warned about the rapid expansion by Dai-ichi Life Vietnam in recent years, saying that this will cause the life insurer to lose control over the quality of contracts and insurance agents.

However, the representative of Dai-ichi Life Vietnam told Dau Tu Chung Khoan that everything is still under control, because Dai-ichi Life does not try to obtain growth at any cost.

If Dai-ichi Life can maintain the current growth rate, it will become a formidable rival to Manulife which also experienced a prosperous year in 2016.

Meanwhile, Chubb Life, Generali Vietnam and Hanwha Life Vietnam are believed to create surprises in 2017. Generali Vietnam, though witnessing some changes in personnel, still could maintain high growth in 2016 with total premiums increasing by 70 percent and newly exploited premiums by 40 percent. Chubb Life, after completing  changes in brand recognition, is expected to gear up in 2017.

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