Vietnam's insurance sector reaches turning point for global integration

Representatives of PVI Insurance's board of directors during a working visit to the headquarters of Lloyd's of London

As Vietnam’s insurance market steadily aligns itself with global standards, achieving and maintaining an international credit rating has become not only a strategic move for individual companies but also a clear indicator of the industry’s maturity. Once considered long-term goals, concepts such as 'financial strength ratings' and 'international reporting standards' are now evolving into prerequisites for connecting the domestic market with global partners.

A significant milestone was reached when PVI Insurance was awarded an A- (Excellent) Financial Strength Rating by AM Best for the first time in 2023. This prestigious rating reflects PVI Insurance’s robust financial position, stable operational performance, and risk management practices aligned with international standards. More importantly, maintaining this rating consistently for three consecutive years (since 2023) is a testament to PVI Insurance’s internal strength and highlights the Vietnamese insurance market’s growing ability to adapt to and integrate with global benchmarks.

From an industry perspective, international ratings such as AM Best’s A- are becoming a 'universal language' for insurers to connect with the global reinsurance market, where demands for financial strength, underwriting capacity, risk management, and transparency are exceptionally high. Holding a strong credit rating enables insurers to secure better reinsurance contracts and expand their capacity to underwrite large and complex risks – a necessity given the growing demands of Vietnam’s domestic market in sectors like energy, infrastructure, marine, and aviation.

In practice, PVI Insurance has effectively leveraged its A- rating to broaden its international partnerships, building relationships with top-tier global reinsurers through major industry events like the Singapore International Reinsurance Conference (SIRC). It has also proactively developed globally linked insurance programmes. Strategic support from foreign shareholder HDI V.a.G. (Germany) has further enabled PVI Insurance to adopt European-standard industrial risk management, financial governance, and claims assessment models. This partnership has also positioned PVI Insurance among the pioneers in Vietnam implementing International Financial Reporting Standards (IFRS 17), aligning with the transparency expectations of international markets.

True indicators of success lie not merely in certifications but in actual business performance. For PVI Insurance, this is evidenced by exceptional growth figures in 2024: direct insurance revenue reached VND12.5 trillion ($477.2 million), capturing 17.5 per cent of Vietnam’s non-life insurance market – a firm affirmation of PVI’s domestic leadership. Beyond scale, a more than 27 per cent on-year growth rate demonstrates PVI Insurance’s ability to align its underwriting and product positioning with evolving market trends.

The reinsurance segment remained a bright spot. In 2024, reinsurance revenue grew to VND2.17 trillion ($82.8 million), up 54.5 per cent on-year. In Q1/2025 alone, reinsurance revenue hit VND1.87 trillion ($71.4 million), achieving 233 per cent of the quarterly target and growing 64 per cent on-year. This strong performance reflects PVI Insurance’s strategy of expanding into international markets and capitalising on its A- rating to strengthen relationships with leading global reinsurers.

At the same time, PVI Insurance has deepened its presence in high-tech segments such as energy, marine, industrial, liability, and aviation insurance, where demands for technical expertise, strong reinsurance capacity, and efficient service models are high. Focusing on specialised products has enhanced PVI Insurance’s technical profit margins while showcasing its capability to design complex insurance policies in collaboration with international insurers, brokers, and reinsurers.

Alongside technical excellence, PVI Insurance has made significant investments in digital transformation – a key driver for improving underwriting efficiency and customer experience. Integrating online policy issuance, digital claims handling, and multichannel customer service has helped PVI Insurance achieve more than 35 per cent growth in e-commerce revenue, reflecting its agility in capturing new consumption trends and optimising internal operations.

Equally important is PVI Insurance’s capital efficiency and risk management, critical to maintaining its A- rating. PVI Insurance consistently delivers a stable return on equity through prudent investment strategies, a conservative asset portfolio, and disciplined technical loss control – sustainable factors that ensure not just momentary success but also resilience through market cycles.

Looking ahead, as standards such as IFRS 17, environmental, social, and governance policies, transparency requirements, and comprehensive risk assessments are becoming universal in the insurance industry. Pioneering companies like PVI Insurance will elevate industry standards and reinforce trust in Vietnam’s insurance market on the global stage.

PVI Insurance takes lead in non-life insurance market According to the Insurance Association of Vietnam, PVI Insurance accounted for 15.4 per cent of the market share in the first six months of 2021, taking the No.1 position in the non-life insurance market, followed by Bao Viet in second place with 15.3 per cent. This is the second consecutive quarter PVI Insurance takes the lead.

Non-life insurers post strong Q1 profits amid market challenges The non-life insurance sector saw a strong start to 2025, with many companies reporting impressive revenue and profit growth despite looming market challenges.

PVI Insurance tops market for average labour productivity PVI Insurance has been named the most reputable insurer in Vietnam for 2024, and it is leading the non-life sector in terms of average labour productivity per year.