VNBusinessNews – The country’s insurance agencies have shifted their business strategies to focus on core products instead of increasing the range of their services in an effort to tackle the global financial crisis.

The Viet Nam Insurance Group, for example, has channeled its energies into sales of car insurance, medical and life insurance and cargo and property insurance. By following this strategy effort, the market leader, BaoViet, has managed to maintain its number one market share.

Meanwhile, PetroVietnam Insurance (PVI) has cashed in by focusing its attention on oil companies to record a large share of the energy, maritime transport, and construction and machinery insurance markets.

The Ho Chi Minh City-based Bao Minh Insurance Joint-stock Company has made the tough decision to sell its Bao Minh-CMG joint-venture to Japan’s Daiichi insurance company, officially ceasing to offer life insurance, instead focusing on key areas including air travel, car and fire insurance.

General Secretary of the Viet Nam Insurers’ Association Phung Dac Loc said that, along with numerous difficulties resulting from the global crisis, opportunities have also been created for insurers as the public considers insurance as “solid protection against a financial tumble”.

However, he urged Vietnam’s insurance agencies to further invest in developing their technology and products and improving their managerial capacity and personnel skills.

This view was shared by AIG Life Vietnam General Director, Jamie Rains, who advised Vietnamese insurers to focus on the life insurance market, which currently covers just five percent of the country’s population, while improving the quality of their products and expanding their distribution channels to increase their competitiveness.

The Ministry of Finance reported that the insurance industry posted an annual growth rate of over 8%, up to 26 trillion VND in revenues during 2008.

Vietnam’s insurance sector now boasts 11 companies offering life insurances, 26 offering non-life insurance, one re-insurance company and 10 insurance brokers.