Insurance premiums tipped to rise
Insurance premiums tipped to rise
The insurance industry targeted total premiums of VND44.6 trillion (US$2.12 billion) this year, up 10.1 per cent over last year, according to the Ministry of Finance's Insurance Supervisory Authority (ISA).
Of the total, non-life insurance premiums were expected to surge 10 per cent to VND24.94 trillion ($1.19 billion) and life insurance premiums would increase 10.2 per cent to VND19.74 trillion ($940 million).
Director of the department Trinh Thanh Hoan said to meet the target, insurance products and services would be diversified this year to better meet the demands of a wide range of organisations and individuals.
ISA reported that despite economic hardships, insurance premiums last year surged 11 per cent against the previous year to VND40.59 trillion ($1.93 billion).
To the figure, non-life insurance contributed VND22.67 trillion ($1.08 billion), up 10.2 per cent, while life insurance - VND17.92 trillion ($853.3 million), up 12 per cent.
Insurers last year paid total compensation of VND16 trillion ($761.9 million), of which VND9.17 trillion was on non-life insurance. Last year also saw a record of VND105 billion of agricultural insurance premiums.
Hoan said although the industry failed to meet its growth target of 17 per cent last year, the result was considered a success in the context of economic slowdown. The market remained stable and foreign investors saw rich potential in the Vietnamese insurance market, Hoan said.
Hoan attributed the result to the success of diversified insurance products such as individual asset insurance, healthcare, credit and agriculture.
Insurance enterprises last year accumulated VND90.59 trillion ($4.314 billion) to reinvest in the economy, up 9 per cent against the previous year.
Hoan estimated that next year's investment would hit VND95 trillion ($4.524 billion), although difficulties would continue to besiege financial, banking and real estate sectors, making it difficult to expand the market
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