In 2023, Vietnamese companies reinsured only VND6tn ($244m) of domestic reinsurance premiums, while they transferred VND22tn of the premiums to foreign reinsurance companies.
Mr Nguyen Anh Tuan, chairman of the Vietnam National Reinsurance Corporation (Vinare), said that for a developing country like Vietnam, the transfer of VND22tn of domestic reinsurance premiums to foreign insurers is reasonable, according to a Vietnam News Service report. Domestic reinsurers lack the capacity to reinsure more.
The non-life insurance market revenue last year stood at more than VND71tn. Mr Nguyen said that about 40% of the total premium revenue was reinsured. For the remaining 60%, which came largely from health and motor vehicle insurance, non-life insurance companies were able to handle it themselves.
As insurance, such as for property, engineering, and marine projects and construction projects or national key projects in such fields as thermal power, bridges, roads, and airports, often requires much larger amounts of money, much of the business will have to be reinsured abroad.
This post was originally published on here
