Transcript Document

Presented by Nathan Rayner
January 2014
Vietnam – The Basics
• Population: 88 million
•The Power of One (1 Region, 1 Culture, 1 party political system)
• Average age: 27
• 63% of population under 35 years old
• Poverty headcount in Vietnam reduced from 60 percent in 1993 to 20.7 (2013)
• 94% literacy rate (Higher than Indonesia and Malaysia)
•Vietnam: 92% of people believe they live better lives than the previous generation
•China: 72%
•EU: 54
• Vietnam: 93% of people believe the next generation will live better lives
•China: 69%
•EU: 24%
Source: Boston Consulting Group, 2013
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Vietnam – The Challenges
• Economic growth slowing (2013: 5.3% GDP growth, down from 6% in 2010)
• Government
• Non Performing Loans
• Inflation
• Real Estate Bubble
• Lack of skilled people
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Gras Savoye Willis Vietnam
• Celebrated 20 Years in 2013
• 131 Employees:
•100 Females (76%)
•29 men (24%)
• Average Age of Employees: 29.89 years old
• We are pioneers – Insurance market opened in 1992 / 1993
• Team members from France, Australia, Japan and Korea
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Vietnam Insurance Market Overview
• Non-Life Market: US$1 Billion
• 10 insurers in 1999, 29 in 2013
• High turnover of staff (now slowing), but huge pressure on salaries for qualified
staff
• Low Rate of insurance to GDP:
•Vietnam: .73%
•China:
.98%
•Malaysia: 1.42%
• 5 insurance companies control around 70 of the market
• GDP consistently over 5%
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Insurance market structure – up to Sep 2013
NON-LIFE INSURERS
29
LIFE INSURERS
16*
12
* From 2014, BIDV
Metlife will be the 17th
life insurance company.
BROKERS
2
RE-INSURERS
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List of Insurance brokers
100% Foreign
owned
companies
100% Vietnamese
owned companies
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•
•
•
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•
Viet Quoc
East Asia
Dai Viet
Pacific Joint
Cimeco
Sao Viet
•
•
•
•
•
Gras Savoye Willis
Marsh
Aon
JLT
Toyota Tsusho
• Nam Á
-Significant management changes in 2013 at Aon, Marsh and JLT
-Intense competition in 2014 (as reflected in Q3 2013)
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40%
37%
35%
30%
30%
25%
27%
26%
24%
19%
18%
16%
13%
16.3% 16.1%
10%
5%
0%
20.6%
20.5%
20%
20%
15%
26%
13%
10%
6%
12.0%
10.7%
4%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 First
9M
2013
8.13%
Non Life
Life
For the first time in the Vietnamese insurance market’s 10-year history, the non-life
insurance market saw the lowest growth rate: 8.13% (growth rate capped at Q3 – 2013)
Source: Ministry of Finances
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List of non-life insurance companies
100% Vietnamese
owned companies
• Bao Viet (Sumitomo 12% of
BV Holdings)
• PJICO
• PTI
• Bao Long
• BIC
• VASS
• Phu Hung
• ABIC
• MIC
• VNI
• Hung Vuong
• VBI
• SVIC
• Xuan Thanh
Join ventures and
foreign
participations
• Bao Viet Tokio Marine (49%
TM)
• UIC (NKSJ Japan/LIG/Bao
Minh)
• Samsung Vina (Samsung
50%/VinaRE 50%)
• AAA (IAG 61%)
• Bao Minh (AXA 17%)
• GIC (ERGO 25%)
• PVI (HDI Gerling 25%)
100% Foreign owned
companies
•
•
•
•
•
•
•
•
ACE
AIG
Cathay
Fubon
Groupama
Liberty
MSIG
QBE
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Market share of Insurers - First 9M - 2013
Bao Viet
22.5%
VND 4118 billion
Bao Minh
9%
VND 1728 billion
PJICO
8%
VND 1484 billion
PTI
6% - VND 1018
billion
Samsung Vina
4%
PVI
23.16%
VND 4221 billion
ABIC
2%
BIC
3%
MIC
3%
Others
19%
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TOP INSURERS HAVING HIGHEST GROWTH RATE
Top Growth Rate
157.54%
160.00%
140.00%
121.92%
120.00%
100.00%
80.00%
60.00%
40.00%
70.22%69.74%
54.02%
43.44% 41.70%
27.32% 26.58%
22.13%
20.00%
0.00%
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Contribution of insurance lines –First 9M-2013
Agriculture, 1.00%
Public liability, 2.00%
Credit and Finance,
0.25%
Hull and P&I, 8.00%
Property & Casualty,
24.00%
Business
Interruption, 0.40%
Fire, explosion &
Property all risks,
7.00%
Heath & Personal
Accident , 19.00%
Motor vehicle, 27.00%
Good transported,
9.00%
Aviation , 2.00%
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Questions / Discussion
12