In the context of adapting to the “new normal”, on October 29, 2021, Vietnam National Reinsurance Corporation (VINARE) successfully organized the 2022 Renewal Roundtable webinar. The virtual conference has attracted audience from the BOM members, managers of Reinsurance and Underwriting Departments of non-life insurance companies in Vietnam market. Swiss Re Asia’s representatives, Mr. Balasubramanian Nagarajan – Head of Malaysia Branch, Swiss Re – in charge of the Vietnam market and the team of Swiss Re’s economists, underwriters and client managers also participated as speakers of the event.
During his welcome speech, Mr. Nguyen Anh Tuan – Executive Chairman of VINARE has remarked on the challenging journey of Vietnam in general and the insurance industry in particular during the past two years when the world experienced an unprecedented crisis – COVID-19 pandemic, impacting all aspects of politics, economy, society in each and every country. Despite initial success on pandemic control and achieving economic development goals in 2020, moving on to 2021, Vietnam started to be seriously hit by the worsening situation of Sars Cov2 spread. The insurance industry, as an integral part of the economy, also adversely affected by Covid-19’s impacts. For 9 months of 2021, non-life insurance market recorded a historical low growth rate (only 2%) of the past 10 recent years.
The Covid-19 pandemic has inevitably posed numerous obstacles to the insurance industry, yet bringing about new opportunities to enhance business efficiency, improving customer service as well as diversifying products and distribution channels, etc. Vietnam’s non-life insurer experienced a tough 2021 renewal season as the result of uncertainties and fluctuations in the domestic and international insurance/reinsurance markets, and it is predicted that challenges still lie ahead. On behalf of Swiss Re, Mr. Balasubramanian Nagarajan also concur that the “hard” market trend will continue to prevail, reinsurance capacity may still be excessive but will be tightened in near future following complex loss trend and the increasing inflation risk for insurers.
Speakers from VINARE provided latest updates on Vietnam insurance market and key features of main underwriting lines, recap of 2021 renewal and offered their outlook for the upcoming 2022 renewal. Swiss Re’s experts have also delivered information on the international, regional and Vietnam insurance market from the view of an international reinsurer as well as expressing their opinions about the upcoming renewal. Both VINARE and Swiss Re shared recommendations on underwriting emerging risks in addition to continued application of standard exclusion clauses including infectious and communicable diseases, cyber risks as well as other COVID-19 related risks such as business interruption, supply chain disruptions, etc.
Following the presentations by VINARE and Swiss Re, the participants actively participated in the Q&A sessions with interactive discussion on the market’s trending topics including the underwriting process of renewable energy projects (wind power, solar power) as well as reinsurance placement for thermal power plants in the context of increasing ESG considerations by international insurers/reinsurers.
The conference has been highly appreciated by the participants for its insightful contents and fruitful discussions. Through this event, VINARE demonstrated our commitment to support the insurance companies in the upcoming 2022 renewal and accompany the Vietnam insurance/reinsurance market towards stable and sustainable development.