After failing to grow by double digits in 2013, the insurance market is expected to grow modestly this year, on the back of an economic recovery and stock market gains.

The introduction of new products and the increased diversification of distribution channels are likely to boost growth as well.

According to Hoang Viet Ha, chief operating officer of the Bao Viet Insurance Group, with economic growth forecast at between 5.4 percent and 5.6 percent this year, the insurance market is likely to maintain the growth rate of the previous year.

The non-life insurance segment is predicted to expand by about 8 percent, and the life insurance segment, around 15 percent.

Ha said the implementation of the voluntary pension insurance scheme and new products would stimulate the life insurance segment this year. In the non-life insurance segment, insurance providers would further diversify their distribution channels to promote growth.

The sector is aiming for a more stable and sustainable growth rate and is determined to undertake restructuring measures, including reducing capital from non-core businesses, he was quoted as saying by Dau tu (Vietnam Investment Review).

According to Luong Quang Ban, Deputy Director of PetroVietnam Insurance, the insurance market in Vietnam could achieve double-digit growth this year, driven by an economic recovery and stock market gains.

However, General Director of the BIDV Insurance Corporation Ton Lam Tung told Thoi bao Tai chinh Vietnam (Vietnam Financial Times) that 2014 would remain a difficult year for the insurance market and the non-life insurance segment in particular, adding that double-digit growth would be a challenge.

According to the statistics from the Insurance Supervision Authority, Vietnam has 59 insurance companies, which generated total revenues of more than 45 trillion VND (2.15 billion USD), representing an increase of 10 percent over 2012.-VNA