The domestic insurance market is expected to fare well this year, fuelled by economic recovery trend and the sector’s remarkable growth rate of 14 percent recorded in 2013, according to economists.

The Ministry of Finance’s Insurance Supervisory Authority (ISA) forecast that the sector could reach a total premium of 51.63 trillion VND (2.42 billion USD) this year, up 9.7 percent over 2013.

Non-life insurance is hoping for a growth rate of 8 percent while life insurance targets an increase of 11.5 percent year-on-year.

At the sector’s recent annual conference held in northern Ninh Binh province, Finance Minister Dinh Tien Dung emphasised that the insurance market is an important pillar supporting the financial service sector, together with the banking system and the stock market.

The market has tapped its role in mobilising idle money in society to reinvest in the economy. The annual reinvested sum reportedly reached 47 trillion VND (2.2 billion USD) in the 2002-12 period, and 105 trillion VND (4.93 billion USD) in 2013, equivalent to 3 percent of the year’s GDP.

Besides, stable jobs were generated for more than 350,000 people, contributing greatly to social welfare.

Since its inception in 1993, the market has offered a variety of insurance products. Most of them, however, are alike in type.

The country’s annual insurance premium has to date accounted for nearly 2 percent of its GDP while that of the regional market was 3.2 percent and the world market, 6.5 percent.

Towards this year’s target, domestic insurance businesses need to put forth strategies to further diversify their services, expand their distribution systems, and improve the quality of customer services, Minister Dung said.

According to the ISA, management agencies this year continue to perfect related mechanisms and policies to create a favourable legal framework for the development of the industry.

Various measures will be taken to step up the restructuring of insurance businesses and foster their mutual collaboration.-VNA