Bank-backed insurers gaining ground in non-life

Vietnamese banks are accelerating plans to establish and expand insurance subsidiaries, signalling a broader shift from distribution partnerships towards direct participation in the insurance market.

- By Khanh Linh

According to the Insurance Association of Vietnam, total gross written premiums in non-life insurance reached $985.2 million in the first quarter, up 13.1 per cent on-year.

While the overall market structure remained relatively stable among leading insurers, competition is increasingly intensifying within the group of bank-affiliated players. PVI continued to lead the market with a 19.1 per cent share, followed by Bao Viet at 13.3 per cent and Bao Minh Insurance at 7.4 per cent.

However, some of the strongest growth momentum is now coming from insurers backed by commercial banks, many of which are expanding premium revenue and market share at a significantly faster pace than the broader market.

TCGIns, the non-life insurance subsidiary of Techcombank, posted revenue of nearly $10.6 million in the first quarter, more than tripling compared to the same period last year. The performance lifted its market share to 1.1 per cent.

MIC, backed by MB, generated $58 million in first-quarter revenue, up almost 14 per cent on-year and equivalent to nearly 6 per cent of the market.

VBI, affiliated with VietinBank, recorded premium revenue of $53.7 million, up 33 per cent on-year and accounting for a 5.5 per cent market share.

Combined, insurers operating within banking ecosystems now account for roughly one-quarter of Vietnam’s non-life insurance market, with expansion expected to continue as more lenders accelerate plans to establish or acquire insurance businesses.