Thursday, 3 January 2013

Vietnam Insurance market prediction 2013

best insurance stock - Vietnam Insurance market prediction 2013 : in 2012 going through many difficulties, challenges than the original data, make it difficult for the insurance industry plans 17% growth target. Preparation of business plan for next year, many companies in the industry no longer sets growth "year after year".

Phung Dac Loc, Secretary General of the Vietnam Insurance Association (AVI) said that the insurance market in 2013 will certainly encounter similar difficulties in 2012. "Congress passed the indicators of socio-economic development in 2013 with GDP growth of 5.5%, public investment accounted for 30% of GDP, the CPI rose by 8%, which means predicts the economy can not start excellence, "said Loc.

Along with his views Loc, many industry experts predicted, more likely, the insurance industry's sales growth in 2013 of around 10%. Thus, this will be the third consecutive year, the insurance market revenue growth regressed.

2012 new longer than 1 month closed, but estimates AVI, overall market growth only slightly higher than 10%, compared with 17% plan. In particular, the volume of non-life insurance estimated growth rate of 13 - 14%, in volume-life is 11 - 12%. Growth rate of 13 - 14% of the volume of non-life insurance this year can say is that the efforts of the business block, in the context of public investment cuts, the company stopped several investment plans expand production and business. In fact, many difficulties and challenges, the non-life insurance companies have shifted our products to personal property insurance, health and medical insurance, liability insurance, credit insurance financial use, agricultural insurance, create new growth for the insurance market and less certain results recorded.

In the life insurance sector also showed less effort, when the real estate market, bleak securities, the income of the workers affected by manufacturing and trading many declining industries, service prices increases, but still attracts numerous customers insured and maintain old insurance contract.

Businesses continuously launching new products and focus on developing distribution channels to reach more potential customers source. In particular, bancassurance distribution channel are many life insurance companies special attention. Some businesses focus on exploiting its own strength as issued through the postal channel. However, due to the characteristics of the Vietnamese insurance market, the channel remains the dominant channel agent should the life insurance business remains focused on this channel. Some businesses continue to develop models of agents like AIA, Korea Life, Dai-ichi, Manulife ... Competitive strategy will continue to be developed for enterprises in 2013.

According to Loc, with the lessons of the past two years to overcome the difficulties and challenges of the global economic downturn, stable macro-economic policies, inflation will be a factor giving the DN plan insurance business in 2013 close to the actual completion of the plan.

2013 is a pivotal year implementation plan developed insurance market from 2011 to 2015 by the Ministry of Finance, at the same time, also celebrate 20 years of the Vietnamese insurance market development. This will be an important motivation for the companies in the industry to strive to set the highest achievement in the business.

Trinh Thanh Hoan, director of the National Insurance Supervisory Management (Ministry of Finance) predicted that by 2013, the total amount of the insurance companies accumulated investment return economy estimated at $ 95.000 billion.

Sir, was near the end of 2012, the growth target of 17% of the entire insurance industry this year may be difficult to achieve?

Initially expected, the insurance market in 2012 continued to maintain growth of about 17% compared with 2011. However, with the difficult economic situation, the total premium income of the market in 2012 was estimated at 40,858, up 11.7 percent from 2011; including non-life insurance premium revenue is estimated at 22,942 billion, up 11.5% and life insurance revenue was estimated at 17,916, up 12 percent from 2011.

In my opinion, the volume growth of 11.5% of non-life insurance this year as expected, but compared to other industries can say is that success in the context of the real estate market froze, investors cuts, investment firms minimize expansion. Many challenges, the non-life insurance companies have shifted our products to personal property insurance, health and medical insurance, liability insurance, credit insurance, agricultural insurance ... Life insurance sector also found success not least, while labor income decline, the price of goods and services increased, but still attracts numerous customers insured and maintained old insurance contract.

Overall, in 2012 the growth rate not reach expected, but the entire insurance industry made a great effort, expressed in that market continues to develop stable, healthy and safe; ensure financial viability ; improved quality of service; diversified insurance products to meet the needs of the insured. As a result, foreign investors still appreciate the potential of the Vietnamese insurance market.

Insurance industry plays an important role in mobilizing resources for investment back into the economy. With the difficulties mentioned above, activities this year have been affected? What is your prediction on resource mobilization plan for investment in the economy in 2013?
In the period 2003 - 2010, insurance companies have created large capital and long-term, play an important role in mobilizing investment resources of socio-economic development. In 2012, with these difficulties, the mobilization of resources for investment return economy affected but not great because now, the investment activities of insurance companies have become more diverse and afternoon depth, in order to ensure selection of the appropriate form of investment, safe and effective. On the other hand, due to the characteristics of the insurance business and technical management of insurance funds, insurance companies invest idle funds from operational reserves must comply with the maximum allowable rate.

In 2012, the total amount of accumulated investment insurers back to the economy is estimated at 90,591 billion, up 9 percent from 2011. In particular, the DN-life estimated at 66,361 billion (up 10.4% compared to the same period in 2011), the non-life business is estimated at 24,230 billion (up 5.6% compared to the same period in 2011).

Forecast, in 2013, the Vietnamese economy will be even more difficult challenge especially for companies in the financial sector, banking and real estate. This will also make it difficult for insurers to expand the customer. We predicted that in 2013, the total amount of the insurance companies accumulated investment return economy estimated at $ 95.000 billion.

Forecast next year more difficult, if the industry growth can be reduced compared to the long-term plan, sir?

As I said, in 2013, the difficulty exists, therefore, predict the Vietnamese insurance market will continue to maintain growth target of about 10 - 12% compared to 2012. In the next year, many new insurance products will be the insurance companies on the market to serve the insurance needs of diverse organizations and individuals as products of export credit insurance, agricultural insurance industry, insurance underwriting, liability insurance, health care and health insurance products, pension and insurance for the poor ...

Despite difficult than the other "g and downs" of the economy, the insurance industry remains a bright spot. What were you most satisfied in the development of the industry in the past year?

Macroeconomic situation in 2012 a negative impact on mining activities covered. However, besides that, the insurance market also has a number of advantages such as: the new legislation takes effect created favorable conditions for the operation of the DN ... 2012 is also the first year of implementation of the strategy to develop the insurance market for the period 2011 - 2020 with the implementation of the synchronization mechanism and policy solutions, enterprise restructuring, strengthening management and supervision State insurance.

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