A new regulation under the amended Law on Credit Institutions, banning commercial banks from bundling insurance together with banking services, is expected to dent bancassurance revenue.
Hanoi Reinsurance Joint Stock Corporation (Hanoi Re) has posted a pre-tax profit in 2023 of VND256bn ($10.5m), a jump of 35% over 2022. This is a record for Hanoi Re, formerly known as PVI Re, since its establishment in 2011.
2024 is forecast to continue to have many challenges for the insurance industry, but the good news is that there is now a roadmap for the transition of the industry to sustainable growth.
Several banks in Vietnam have reported a decline in bancassurance sales in the first nine months of this year, with the trend expected to continue into the new year, as a consequence of tighter regulatory scrutiny and consumer complaints about mis-selling or forced purchases of insurance policies.
Vietnam's non-life insurance market will likely resume its growth momentum as global demand recovers and benefits the domestic economy, according to Mr Ken Lau, senior financial analyst at AM Best.
The operating performance of Petrolimex Insurance Corporation (PJICO) is regarded as adequate, evidenced by a five-year weighted average return-on-equity ratio and combined ratio of 12.2% and 97.1% (2018-2022), respectively, says AM Best.
Vietnam has joined the ASEAN Compulsory Motor Insurance (ACMI) system, which requires motor vehicle owners from other ASEAN member states transiting or travelling to Vietnam to register for compulsory third-party liability insurance.
The Ministry of Finance has just issued a much-awaited circular detailing the implementation of several articles of the Law on Insurance Business.
Continuing from the robust half year results, the AIA Group achieved a substantial 35% in the value of new business (VONB) to US$994 million in the third quarter of 2023.
The operating performance of BIDV Insurance Corporation (BIC) is assessed as adequate, with a five-year average return-on-equity ratio of 11.9% and combined ratio of 95.5% (2018-2022), says AM Best.