Second meeting with The Reinsurance Tutorials, episode #2 - Season 4
Hi everybody 👋
Today is the launch of the 2nd episode of the Reinsurance Tutorials season 4!
We will talk about the "Non-Life Reinsurance in Vietnam: Stability in Changing Climes".
This topic will be addressed by our Arundo Re expert Hoang Anh NGUYEN.
Let’s start! ⏬
[Hoang Anh]: Hi, my name is Hoang Anh Nguyen, senior underwriter for Vietnam, Laos, Cambodia and Philippines. Vietnam is a developing country with a high growth rate among the Asian regions. The insurance industry is a key contributor to economic development, protecting businesses and individuals from unpredictable and unforeseeable risks. Before 1993, there was only one insurance corporation in Vietnam. Our company was present and supported the market in its early stages.
To date, the insurance industry has undergone 30 years of development and made important progress. A recent report, issued by the Insurance Association of Vietnam, shows that after the 3 first months of 2024, total written premiums in the non-life sector were estimated at VND 20.002 billion, up 12.2% compared to the same period in 2023. Claim amounts after the first 2 months of 2024 were around VND 4.855 billion, with a claims ratio of 24.3% (without reserve), more than five points lower than the same period in 2023.
We have a relatively large capacity in many major reinsurance programs, especially for the 20 largest non-life insurance companies in Vietnam. At company headquarters in Paris, we speak Vietnamese, have close relationships with partners, and understand the unique characteristics of the Vietnamese market.
In the process of expanding in the Vietnamese market, we also realize that Insurance Industry currently faces great difficulties: Increased competition, and natural disasters, climate change and epidemic risks. At the same time, we must ensure legal regulatory compliance in conditions of frequent change. In 2023, the Government issued Decree 67 in the compulsory fire and explosion business lines, allowing insurance companies to increase or decrease tariff rates by up to 25%. Due to intense competition and pressure from clients, underwriters must often reduce rates to get a better market share. Significantly reducing premiums can lead to market imbalances and increased loss ratios, especially in cases like natural disasters or large losses. Reinsurers and insurers have to find solutions for maintaining sustainability in Vietnam.
Our plan is to continue following the evolving situation and developing our portfolio in the Vietnamese market with care. We provide equal support in policies and reinsurance capacity to businesses. This way, we hope to create situations where everyone wins and hopes to contribute to effective and sustainable growth.
See you soon for the next episode 👋
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