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:
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
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