Can International Competition Drive Insurance Market Growth? Evidence from Vietnam

This paper provides an analysis of ex post facto effects after the entry of foreign companies into the Vietnamese insurance market and argues that foreign competition has positively impacted the insurance industry based on evidence from Vietnam. Ba...

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Main Author:	World Bank
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	INSURANCE MARKET FINANCIAL DEVELOPMENT FOREIGN OWNERSHIP COMPETITION MARKET STRUCTURE LIFE INSURANCE
Online Access:	http://documents.worldbank.org/curated/en/736821593169520933/Can-International-Competition-Drive-Insurance-Market-Growth-Evidence-from-Vietnam http://hdl.handle.net/10986/34132

id	okr-10986-34132
recordtype	oai_dc
spelling	okr-10986-341322021-05-25T09:48:32Z Can International Competition Drive Insurance Market Growth? Evidence from Vietnam World Bank INSURANCE MARKET FINANCIAL DEVELOPMENT FOREIGN OWNERSHIP COMPETITION MARKET STRUCTURE LIFE INSURANCE This paper provides an analysis of ex post facto effects after the entry of foreign companies into the Vietnamese insurance market and argues that foreign competition has positively impacted the insurance industry based on evidence from Vietnam. Based on 16 years of data, the paper presents the main observations on the impact of international competition on the insurance market after Vietnam opened up to foreign investors. The results show that in Vietnam: after foreign penetration, local companies do not lose market share rapidly as liberation takes time; foreign insurers may dominate the domestic market, but if insurance penetration is low, this impact does not endanger the financial security of the country; the dominance of foreign insurers in the life sector could change the traditional insurance trajectory in emerging economies , which are traditionally oriented mostly on developing compulsory third-party liability insurance; foreign insurers make long-term contributions to the local economy if they invest in local capital markets. Thus, the paper argues that foreign competition has positively impacted the insurance industry based on evidence from Vietnam. 2020-07-16T17:06:42Z 2020-07-16T17:06:42Z 2020-06 Report http://documents.worldbank.org/curated/en/736821593169520933/Can-International-Competition-Drive-Insurance-Market-Growth-Evidence-from-Vietnam http://hdl.handle.net/10986/34132 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Other Financial Sector Study East Asia and Pacific Vietnam
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	INSURANCE MARKET FINANCIAL DEVELOPMENT FOREIGN OWNERSHIP COMPETITION MARKET STRUCTURE LIFE INSURANCE
spellingShingle	INSURANCE MARKET FINANCIAL DEVELOPMENT FOREIGN OWNERSHIP COMPETITION MARKET STRUCTURE LIFE INSURANCE World Bank Can International Competition Drive Insurance Market Growth? Evidence from Vietnam
geographic_facet	East Asia and Pacific Vietnam
description	This paper provides an analysis of ex post facto effects after the entry of foreign companies into the Vietnamese insurance market and argues that foreign competition has positively impacted the insurance industry based on evidence from Vietnam. Based on 16 years of data, the paper presents the main observations on the impact of international competition on the insurance market after Vietnam opened up to foreign investors. The results show that in Vietnam: after foreign penetration, local companies do not lose market share rapidly as liberation takes time; foreign insurers may dominate the domestic market, but if insurance penetration is low, this impact does not endanger the financial security of the country; the dominance of foreign insurers in the life sector could change the traditional insurance trajectory in emerging economies , which are traditionally oriented mostly on developing compulsory third-party liability insurance; foreign insurers make long-term contributions to the local economy if they invest in local capital markets. Thus, the paper argues that foreign competition has positively impacted the insurance industry based on evidence from Vietnam.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Can International Competition Drive Insurance Market Growth? Evidence from Vietnam
title_short	Can International Competition Drive Insurance Market Growth? Evidence from Vietnam
title_full	Can International Competition Drive Insurance Market Growth? Evidence from Vietnam
title_fullStr	Can International Competition Drive Insurance Market Growth? Evidence from Vietnam
title_full_unstemmed	Can International Competition Drive Insurance Market Growth? Evidence from Vietnam
title_sort	can international competition drive insurance market growth? evidence from vietnam
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/736821593169520933/Can-International-Competition-Drive-Insurance-Market-Growth-Evidence-from-Vietnam http://hdl.handle.net/10986/34132
_version_	1764480102408650752

Can International Competition Drive Insurance Market Growth? Evidence from Vietnam

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