Insurance triples average GDP growth
Insurance triples average GDP growth
The insurance market's turnover at the end of last year accounted for 2.44 per cent of the nation's gross domestic product (GDP), meeting the national strategy's target.
Minister of Finance Dinh Tien Dung said in a report that the turnover of the insurance market posted an average growth of 14.5 per cent per year during the 2011-14 period, nearly tripling the average GDP growth rate.
The results were "significant," the minister said, given the slow economic recovery, declining interest rates, low credit growth, and unimproved incomes of the people.
Agency for Insurance Supervisory and Management under the ministry projected the growth rate of insurance premiums this year in double digits, specifically around 10 to 12 per cent for non-life insurance and 15 to 17 per cent for life insurance.
Dung noted that this year, the ministry would introduce regulations for microinsurance, which provides protection for low-income people, together with completing regulations for other kinds of insurance, including agricultural and pension insurance. In addition, the ministry aims to enhance system security, the competitiveness of insurance firms while encouraging the diversification of insurance products and distribution channels at the same time, tightening management, and promoting international cooperation in insurance.
The report also revealed that as of the end of March, there were about 60 insurance companies in the country, offering non-life insurance, life insurance, insurance brokerage, and re-insurance.
The Finance Ministry's statistics show that in the first quarter of this year, the total turnover from insurance premiums reached more than VND14.38 trillion (US$665.75 million), representing a rise of 18.7 per cent over the same period last year.
Under the national strategy for developing the Viet Nam insurance market during 2011-20, the insurance industry's total revenue is expected to account for 3 per cent of the GDP this year, instead of 2 per cent, and between 3 per cent to 4 per cent by 2020.
