Race is on for motor vehicle insurance market share

October 12, 2022 | 11:00
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The non-life insurance business, particularly for vehicles, is gaining pace across Vietnam.

The Ministry of Finance at the end of September approved the transfer of all contributed capital of Groupama Vietnam General Insurance Co. Ltd., which has been operating in this country for more than a decade, to Tasco JSC.

Race is on for motor vehicle insurance market share
Some groups are planning to focus on developing car insurance, Photo: Dung Minh

A Tasco representative told VIR that its non-stop toll collection service was projected to reach five million consumers within the next few years, from 2.5 million currently.

Tasco also intends to acquire SVC Holdings to complete its automobile service infrastructure system and increase its number of showrooms to 120 by 2026.

“After this acquisition, Tasco plans to focus on developing motor vehicle insurance to take advantage of Savico’s 73 showrooms. This deal is expected to increase competition in the motor vehicle insurance market,” the representative said.

SVC Holdings is now the biggest stakeholder, owning nearly 55 per cent of Savico, a well-known brand in Vietnam with more than 11 per cent market share and a wide distribution network.

It also owns Volvo’s automotive distribution firms, in addition to Savico’s distribution of 10 prominent auto brands, representing nearly a quarter of the Toyota car distribution market and one-third of Ford’s motor vehicle distribution.

Fresh statistics from the Ministry of Finance’s Insurance Supervision and Administration Department showed that in the first seven months of 2022, the total premium revenue of the non-life insurance market was estimated at $1.72 billion, an increase of 15.76 per cent compared to the same period in 2021. Leading in terms of original premium revenue is PVI, accounting for a market share of 15.52 per cent.

Next is Bao Viet, with a market share of 13.77 per cent. Other key players include PTI, with 9.74 per cent market share, MIC with 7.4 per cent, and Bao Minh accounting for 7.34 per cent.

According to the Vietnam Insurance Association, motor vehicle insurance contributed the second-biggest total revenue in non-life insurance operations in the first six months of 2022.

In December 2021, AAA Insurance JSC was acquired by Bamboo Capital Group. Since the deal was made, AAA Insurance is focusing on upgrading its system as well as developing new services based on customer experience, with bancassurance and insurtech identified as two important channels for future investment. Currently, AAA has 51 branches and 100 transaction offices nationwide.

In the first half of 2022, Bao Minh said that the original premium revenue for motor vehicle insurance reached VND436 billion ($18.9 million), up 5 per cent on-year and accounting for 18 per cent of its total revenue.

Meanwhile, motor vehicle insurance premiums made up 68 per cent of the total revenue in H1 2022 at Aviation Insurance Corporation, while for BIDV Insurance Corporation it was around 22 per cent. For Military Insurance, motor vehicle insurance premium revenue reached $33 million, contributing to 40 per cent of total premium revenue for the firm.

Non-life insurance sees rosy first-half performance Non-life insurance sees rosy first-half performance

The non-life insurance segment recaptured momentum, reaching double-digit growth in premium revenue in the first half of this year, with the indemnity rate also being forecast for an upsurge.

By Thuy Thanh

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