In additiin, many nin life panies l

In additiin, many nin life panies lack access to new catial needed to fund future growth Another weakness is a rather unbalanced pattern of growth seen in the strong growth in fire and health/ personal accident insurance compared to the virtually stagnant motor line since 2011.
Healthh P.A Property and Casualty lines as growth engines.
Health& PA as well as Property& Casualty have been the most rapidly growing non-life lines in Vietnam from 2008 to 2012 accounting for almost half of total no life premiums. Motor on the other hand has a relatively small share of 28 %., compared with other low income market where this line of business usually contributes 40%, and more to the total. Therefore, the problems frequently associated with motor business such as cut throat pricing and fraudulent claims have less of an on impact on the overall performance, stability and discipline of the Vietnamese non-life insurance market.
Attractive loss ratios but uncertainty over reserve adequacy. Loss ratios are relatively low , partially attributable to tariffs. However some observers suggest that IBNR reserves may not be sufficient and need to be carefully reviewed when assessing the technical profitability of individual companies and the market as a whole .
Top 3 non-life insurers account for more than 50% of the market Competition with in Vietnam's insuranoe market is intense but compared to the more fragmented markets of Indonesia, Thailand or the Philippines enjoys less competitive pressures and a higher degree of market discipline due to a significant level of market concentration.
Large State owned Enterprises(SOEs) have also been expanding into the non life sector since 2007 by establishing non-life carriers or acquiring(majority) stakes in existing companies.
Last year, however the government adopted a negative stance on these corporations forays in non core activities and has requested the SOEs to divest their stakes before 2015 .
This requirement puts pressure on the affected insurers as it is difficult to attract new investors willing to pay an adequate price in the current economic evironment. This may offer opportunities for foreign insurers to acquire, which still dominate the non-life markets.