Huge growth potential in Vietnam's insurance sector

Vietnam’s insurance market has expanded at a tremendous pace over the past few years, making it one of the fastest growing markets in the world. With a boost from the liberalization through WTO agreements, economic growth, rising incomes and increasing insurance awareness, the market will continue to grow at fast pace in coming years. With many largely untapped sectors, the country’s insurance industry holds huge growth potential. Agriculture, personal assets and housing are some of the segments where the insurance industry has yet to make headway.

The life insurance market in Vietnam seems very promising too. With a population of over 85 million and only eleven life insurers, it reflects a low penetration rate in the market. While the global economic slowdown has taken toll on major industries of the country, Vietnam’s insurance market has displayed great resilience to the threat and its non-life insurance segment grew at an impressive rate of 17% in the first half of 2009. The uptrend was also seen in the life insurance segment which posted growth of 8% in the same period.