Vietnam's insurance market, one of the fastest growing markets in the world, has expanded rapidly over the past few years. And with support from the liberalisation post WTO agreements, economic growth, rising incomes and increasing insurance awareness, the market will continue to grow at fast pace in coming years, says a new report.
The life insurance market in Vietnam seems very promising as the country has a population of over 85 million people, with only eight life insurers, reflecting a low penetration rate. Thus, life insurance market can prove to be a boon for foreign life insurers.
A new report titled "Vietnam's Insurance Sector Forecast To 2010" by RNCOS forecasts that Vietnam's insurance industry is to post a grow at a compound annual rate of around 22% during 2008-2010.Life insurance is projected to hit a CAGR of about 12.1% during 2008-2010; while the non-life insurance industry is expected to grow at a CAGR of 29%.
According to RNCOS, investment-linked insurance products will decide the future of life insurance industry in the country. Energy price, export credit, medical, agriculture and expatriate healthcare insurance are some of the key opportunity areas for non-life insurers in Vietnam.
