Vietnam’s insurance market is expected to continue its 2011 growth rate,with an estimated 19-21 percent year-on-year increase in 2012,according to an industry official.
Trinh Thanh Hoan, headof the Ministry of Finance's Insurance Management and SupervisionAgency, said next year's total premium turnover is expected to rise to43 trillion VND (2 billion USD).
The year will see avariety of new insurance products to satisfy demands of both individualand institutional customers. They will include products for exportcredit, agriculture, nuclear energy and medical doctor liability, amongothers.
In 2011, the insurance market gained a totalpremium turnover of more than 36 trillion VND (1.69 billion USD),showing an increase of around 18 percent over 2010's figure, animpressive achievement in the context of a macro-economy faced with manydifficulties.
The insurance industry in 2011 investedalmost 97 trillion VND (4.6 billion USD) into the economy, up 20 percentover last year's amount, according to Hoan.
Meanwhile, insurance companies paid 12 trillion VND (571 million USD) in compensation.
Phung Dac Loc, secretary general of the Association of VietnameseInsurers, said the non-life insurance sector's premium value reachedaround 21 trillion VND (1 billion USD) after having won an annual growthrate of 25 percent. The figure of the life insurance sector was 16trillion VND (761 million USD), up 17 percent.
Theinsurance agency head, however, said the development of the market hasyet to match the potential of the country's economy and its populationof almost 90 million.
He said insurance companies should diversify products to suit demands and the development of Vietnam 's financial market.
He also noted that there is abundant room for insurers to tap intosectors such as medical care, education, credit and farm insurance.
Other works planned include improving transparency to consolidatecustomers' trust, and building strategies for short – and long-termdevelopment.
On the part of the management body, Hoan saidthe legal system concerning the insurance business will continue toimprove to provide a favourable environment for market growth./.
Trinh Thanh Hoan, headof the Ministry of Finance's Insurance Management and SupervisionAgency, said next year's total premium turnover is expected to rise to43 trillion VND (2 billion USD).
The year will see avariety of new insurance products to satisfy demands of both individualand institutional customers. They will include products for exportcredit, agriculture, nuclear energy and medical doctor liability, amongothers.
In 2011, the insurance market gained a totalpremium turnover of more than 36 trillion VND (1.69 billion USD),showing an increase of around 18 percent over 2010's figure, animpressive achievement in the context of a macro-economy faced with manydifficulties.
The insurance industry in 2011 investedalmost 97 trillion VND (4.6 billion USD) into the economy, up 20 percentover last year's amount, according to Hoan.
Meanwhile, insurance companies paid 12 trillion VND (571 million USD) in compensation.
Phung Dac Loc, secretary general of the Association of VietnameseInsurers, said the non-life insurance sector's premium value reachedaround 21 trillion VND (1 billion USD) after having won an annual growthrate of 25 percent. The figure of the life insurance sector was 16trillion VND (761 million USD), up 17 percent.
Theinsurance agency head, however, said the development of the market hasyet to match the potential of the country's economy and its populationof almost 90 million.
He said insurance companies should diversify products to suit demands and the development of Vietnam 's financial market.
He also noted that there is abundant room for insurers to tap intosectors such as medical care, education, credit and farm insurance.
Other works planned include improving transparency to consolidatecustomers' trust, and building strategies for short – and long-termdevelopment.
On the part of the management body, Hoan saidthe legal system concerning the insurance business will continue toimprove to provide a favourable environment for market growth./.
