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Vietnam's insurance sector may appear to be expanding fast but it remains fraught with hindrances, according to PVI Sun Life Insurance Co. Ltd.'s top executive.
Vietnam's insurance sector grew by an estimated 30% year over year in terms of gross premiums written in 2015, PVI Sun Life Insurance CEO Michael Elliott told SNL Financial. He noted that it was the growth potential of Vietnam that prompted one of the company's shareholders, Sun Life Assurance Co. of Canada, to raise its stake in PVI Sun Life to 75% from 49% in November 2015.
PVI Sun Life Insurance is a joint venture between Sun Life Assurance, a subsidiary of Canada's Sun Life Financial Inc., and Vietnam's PVI Holdings.
However, despite the apparent growth of Vietnam's insurance industry, expansion in the sector is slow and would be much faster if urgently needed reforms in training, investment rules and online transactions are implemented.
Elliott cited the lack of funds as the main culprit for the slow growth and development of Vietnam's insurance sector. "[For] premium collection in [Vietnam], over 90% of it is done by somebody running around and picking up cash," he said. "That is a disaster...