Vietnam’s insurance sector is predicted to grow 20 percent this year thanks to a change in Government policies(Source: kinhdoanhnet.vn) According to Phung Ngoc Khanh, head of the Insurance SupervisoryAuthority Department under the Ministry of Industry and Trade, the ministrythis year will carry out some solutions to improve the market.
For instance, he told Thoi Bao Tai Chinh Vietnam (VietnamFinancial Times) that the Goverment is studying an amendment to the InsuranceBusiness Law No24/2000/QH10 and law No 61/2010/QH12.
Some policies on agriculture, aquaculture and pension insurancewill be applied and this segments will issue new kinds of insurance products,he said.
Khanh also affirmed that the ministry will supervise thecompanies’operations in order to give them timely support. He added that theministry will make all efforts to implement international commitments andco-operation.
This year, Khanh expected the sector will attract more prestigiousinvestors and the market will reach growth of over 20 percent.
Talking about the market this year, the chairman of the InsuranceAssociation of Vietnam, Pham Kim Bang, predicted that the growth for life insurancewill be 25 percent and 14 percent for the non-life insurance sector.
He told baodautu.vn that the awareness of people and companiesabout the role of insurance has changed, and they using more insuranceproducts.
Furthermore, the country’s growth, which is predicted to be 6.7 percentin 2017, will be an advantage for the market to develop.
In addition, new Government policies, such as public property andnatural disaster insurance, will be a positive signal boosting the market, hesaid.
By the end of 2016, there were 62 insurance companies operating inthe country. Of this total, 29 were non-life insurance companies, 18 were lifeinsurance companies, two were re-insurance companies, 13 were insuranceintermediary companies and one was a branch of a foreign insurance company.
Last year, the sector enjoyed good results.
The Insurance Supervisory Authority Department reported that thetotal revenue of the sector last year stood at nearly 102 trillion VND (4.45billion USD). Of the total, 86 trillion VND was from the insurance business, up23 percent over the previous year and 15 trillion VND was from investment.
Total claims were 25.9 trillion VND. About 12.6 trillion VND wasfrom non-life insurance and 13.3 trillion VND was from life insurance.
Despite good results, some shortcomings still existed, such asthere were many insurance products but they did not meet the demand of allsegments.
The management skill of some non-life insurance companies was notgood so they lacked competitiveness.-VNA
VNA
