Opportunity for insurance company in TPP?

Many experts expect that insurance company of Vietnam will be allowed to set up and run business in member countries if meeting the requirements when Vietnam participate in TPP.

Opportunity for insurance company in TPP?

TPP influence on insurance company

Relating to the influence of the TPP on the insurance sector in Vietnam, Mr. Phung Dac Loc - General  Secretary of the Vietnam Insurance Association said that the opportunity of Vietnam insurance company is huge because in the 11 countries participating TPP with Vietnam, there are insurance companies of Australia, Canada, Japan, the US engaging in the market of Vietnam.

"There may be these countries and the remainders will ask for license to establish insurance company in Vietnam. However, that still depends on the investment decisions of business partners. For Vietnam , the insurance company operating in Vietnam will also be allowed to set up and operate insurance business  in 11 member countries if they meet the requirements of the host country," said Mr.Loc.

Mr.Loc also indicates new opportunities of the insurance industry when Vietnam join TPP. Take general insurance sector for instance. The demand for property insurance will increase sharply when foreign investment wave from member countries come to Vietnam or foreign countries not in TPP invest in Vietnam.

In addition, the process of equitizing state enterprises will be promoted which will be conducted along with expanding “room” for foreign investors in the enterprises that state do not own many shares. The process equitizing 70,000 public service businesses will also be promoted, etc. Moreover, more and more playgrounds will be created for domestic and foreign investors.

Furthermore, the development of economic, cultural and tourism activities will lead to the needs of insurance.  The demand for liability insurance will also rise due to practices of foreigners and foreign enterprise operating in Vietnam. Isurance types such as product liability, environmental liability, public liability, 3rd person liability, etc. will be developed, in which demand for cargo liability insurance exports will increase quickly.

Leaders of the Vietnam Insurance Association said, not only general insurance company but also life insurance company will also benefit from the TPP. Accordingly, the integration, the demand for life insurance and health for foreigners working in Vietnam increased in number and quality.

"The stock market and real estate developers to increase financial investment capacity of insurers from the policyholder funds, promising attractive rates help develop universal life insurance, life insurance the units ... In particular, demand for pension insurance, insurance for the elderly will increase by Vietnam with the speed of population aging fast ... "he acknowledged Loc.