Some of the targets set for the country's insurance industry by the Vietnamese government may have to be worked down or may need to be adjusted as it is difficult to meet these targets.
Vietnam Social Security Organisation has expressed confidence that its unemployment insurance fund is in surplus of around VND63tn ($2.6bn) and is sufficient to provide the intended benefits to public employees and workers affected by organisational restructuring exercise.
In 2025 labour and social insurance policies in Vietnam will see a gradual increase in retirement age while the eligibility age for social pensions will decrease. These moves will benefit more senior citizens as the country ages rapidly.
Prudential Vietnam Assurance (Prudential) and HSBC Bank (Viet Nam) (HSBC) have announced a bancassurance partnership in Ho Chi Minh City.
The Agriculture and Rural Development has drawn up plans to revamp agricultural insurance in the country from the central down to the local level, according to Mr Le Minh Hoan who heads the ministry.
The net impact on BIDV Insurance Joint Stock Corporation (BIC) of Typhoon Yagi, which occurred in the third quarter of 2024, is expected to lead to greater volatility in underwriting performance over the near term, says AM Best. Nonetheless, the impact is expected to be mitigated by the company's reinsurance programme.
The estimated insured losses caused last month by Typhoon Yagi has reached at least VND12,811bn ($507m) as of 16 October, according to reports from insurance companies.
The destructive typhoon Yagi caused severe damage to 26 provinces and cities in northern Vietnam, including key economic zones like Hai Phong, Quang Ninh and Hanoi. These areas host significant industries, contributing 25.81% of GDP and 17.27% of Vietnam's export value, according to FiinGroup.
Agricultural insurance will gradually play an important role in Vietnam in which more than 60% of the population live in rural areas and are largely dependent on agricultural production, according to Mr Ngo Trung Dung, Insurance Association of Vietnam (IAV) deputy secretary-general.
In 2023, Vietnamese companies reinsured only VND6tn ($244m) of domestic reinsurance premiums, while they transferred VND22tn of the premiums to foreign reinsurance companies.