Life insurance forecast to grow 25% this year

Its acting chairman, Tran Vinh Duc, said: “The Vietnamese economy is expected to grow at a rate of between 6.8% and 7% in 2019. Demand for insurance, particularly life insurance, will increase as more and more people and organisations started caring about insurance products. Thus, the market will keep growing.”

In a report released this week, the association said last year the life insurance market performed well, earning revenues of nearly VND116 trillion (US$5 billion).

Of this, VND88 trillion (US$3.8 billion) was from premium income, an increase of 33%, and the remaining VND28 trillion (US$1.2 billion) was from proprietary investment, a 30% rise, the association said.

“Life insurers’ financial capacity improved with total assets rising 25% to VND302 trillion (US$13 billion)” Duc said.

The total provision made last year by companies was nearly VND220 trillion (US$9.5 billion), up 30%, he said.

Life insurers settled claims of more than VND18.6 trillion (US$800 million) in 2018, up 17%, he said.

The industry is making a great contribution to the economy, supplementing long-term investment in the economy last year by VND276 trillion (US$11.9 billion), a 33% increase.

At a ceremony to mark the 25th Vietnam Insurance Day and 19th anniversary of the Insurance Association of Vietnam in Hanoi last month, Deputy Minister of Finance Huynh Quang Hai stressed the need to raise public awareness of insurance, improve the industry’s financial capability and develop new insurance products.

He called on the IAV and the Ministry of Finance to help draft an Insurance Business Law.