The Knowledge Centre - Asian Insurance Focus: Vietnam & Thailand

Asian Insurance Focus: Vietnam & Thailand

New Delhi, 4th September 2008: Globalization is the key antecedent which is bringing about an "irreversible transformation" in the Asian allowance market. Asia is acceptable an important advance engine for all-around insurers due to the alteration socio-economic dynamics. According to a latest analysis address from HSBC, in adjustment to be abiding winners, activity allowance companies in Asia charge to alter their assets streams such that at atomic 25% of balance are sourced overseas, while advancement a ascendant position in the calm market.

Many Asian banking casework companies accept exceeded the all-embracing advance amount for their calm economies and are accordingly analytic to aggrandize globally or advance their shares in new markets. Another trend predicted by PwC, was that intra-Asian barter would abide to increase, decidedly as the West decreased its investment in this region. The accretion abundance and educational development in Asia, has complete a acceptable foundation for the development of banking services.

Vietnam has become one of the fastest-growing economies in the world, averaging about 8% anniversary gross calm artefact (GDP) advance from 1990 to 1997 and 6.5% from 1998-2003. GDP in the country rose 8.5 percent in 2007 and has added by over 50 percent back 2001. From 2004 to 2007, GDP grew over 8% annually. Vietnam's aggrandizement rate, as abstinent by the chump amount index, which stood at an anniversary amount of over 300% in 1987, was below 4% from 1997 (except in 1998 if it rose to 9.2%) until 2003. However, in 2004 the chump amount basis added to 9.5%, bottomward in 2006 to 7.5%. It is due to these arresting developments that Vietnam has bent the absorption of adopted insurers analytic for an addition to the accompanying cool economies of India and China.

Thailand is the 2nd better abridgement in Southeast Asia, afterwards Indonesia, a position it has captivated for abounding years. Thailand ranks amid in the abundance advance in South East Asia as its 4th richest nation per capita, afterwards Singapore, Brunei, and Malaysia. It is aswell an balance abridgement for the neighbouring atomic developed countries of Laos, Burma, and Cambodia. Its abridgement is accepted to abound by 4.2 % in 2007 from 5 % in 2006. The Thai abridgement in 2008 is forecasted to abound at 5.6% (in the forecasted ambit of 5.0-6.0%).

Market Performance:

Between 2000 and 2007, Vietnamese activity allowance area added from $51.12 actor to $586.24 million, CAGR advance of 35.65% during this period. The Knowledge Centre forecasts that the activity allowance bazaar in Vietnam would abound at a CAGR of 10.71% and an anniversary boilerplate advance amount of 13.21% amid 2007 and 2011. From $596.24 actor in 2007, the bazaar will access by about $388 actor and ability $975.21 actor by the end of 2011.
Within a amount of 7 years (2000-2007), Thai Insurance Sector has accomplished a advance of 191% currently valuated at $9,434.72 million. The Knowledge Centre predicts, the all-embracing bazaar admeasurement will access by 72.5% added and is accepted to blow the highs of $13,012.75 actor by 2011.

Competitive Landscape:

Some of the better US, Japanese and French insurers focus alone on their home markets. However, multi-national groups who accept ‘international’ businesses about consistently accept operations in the Asia-Pacific region, if alone because of the admeasurement and advance abeyant of abounding of the civic markets.

Under the Life Insurance Sector, AIG is the better in Asia, in agreement of country attendance and premiums. ING comes additional by premiums. However, globally, Prudential acme the list, accepting the a lot of abased on the region.

Among the non-life allowance cos., bounded amateur Mitsui Sumitomo, leads the acreage and blow side.

Major Driving Factors:

=> Globalization
=> Deregulation which is aperture up the markets
=> Opening up of allowance bazaar for adopted investments
=> Cheaper and added able administration channels
=> Increasing adopted absolute investments
=> Vietnam’s access into the World Trade Organisation (WTO)
=> Ongoing industry consolidation

=> Increment in the action holder firms
=> Boost in Merger and Acquisitions activities
=> Changing socio-economic dynamics
=> Market alms added margins
=> Unique aggregate of size, age contour and advance prospects
=> Many more..

Major Issues, Trends and Opportunities

=> Lack of acceptable quality, top crop continued appellation investments in bounded currency
=> Limited availability of articles and its bound outreach
=> Local players abridgement both harder and bendable accommodation to be competitive
=> Limited compassionate of products
=> Continuous accession in intra-Asian trade
=> Need for about-face in the assets streams
=> Chance to attempt anon with banking casework companies
=> Focus on paying out added in claims
=> Drastic accession in abyssal and burden allowance sectors
=> Developments in countries, who were carefully adapted by their government
=> Lack of able abettor quality
=> Change in the administration method
=> Difficulties in architecture networks and brands
=> Risk administration apropos in allowance companies
=> Global Expansion
=> Transformation in the authoritative arrangement to win chump loyalty
=> Weak disinterestedness markets
=> Impact of sub-prime
=> Regulatory and bazaar obstacles in the arising markets

Topics covered in the report

=> Overview of the Asian Insurance Sector
=> Trends appraisal of the Asian economy
=> Asia’s bread-and-butter attendance as compared to added countries
=> Economic achievement of Vietnam
=> Past and present book of Vietnamese Insurance Market & Future Outlook
=> Driving factors for Vietnamese Insurance Market
=> Trend appraisal of Vietnamese abridgement & macroeconomic factors accidental to the advance of the sector
=> Government cardinal initiatives to strengthen Insurance Market
=> Competitive Landscape & Market Share of adopted and calm players
=> Company profiles of top players
=> Thai economy, its performance, approaching angle for 2008-09
=> Government’s bread-and-butter policies, macroeconomic factors, trends and analysis
=> Market achievement and anticipation for Thai Insurance Sector amid 2000, 2007 and 2011
=> Driving factors for Thai Insurance Market
=> Major Trends appraisal of the market
=> Competitive mural & bazaar allotment of companies in activity and non-life allowance sector
=> Company profiles of top players in activity and non-life allowance sector

About ‘The Knowledge Centre’

Established in 2007, “The Knowledge Centre” caters to audience in Financial Services Sector globally. Its ability lies in ability management, business analysis & administration consulting. It conducts surveys above altered regions and creates business and bazaar analysis letters on all the above sectors and sub-sectors of all-around banking casework market.
The Knowledge Centre is a wholly endemic accessory of the world’s better controlling seek close in banking services. The ancestor aggregation undertakes seek assignments at top levels. It has offices advance above London, New York, Dubai, Delhi, Hong Kong and Tokyo.

To adjustment this report, attentive get in blow with:
Renu Dhyani
PR & Communication Executive
The Knowledge Centre – A Sheffield Haworth Company
Tel: +91-11-40601158 (o); +91-9958790353 (m)
Email: dhyani@sheffieldhaworth.com
Web: www.sheffieldhaworth.com