Illustrative image (Photo: tapchitaichinh.vn) Hanoi (VNS/VNA) – Vietnam’s insurancemarket has experienced growth this year, while many other sectors are sufferinga lot of negative impacts from the COVID-19 pandemic, according to the Ministryof Finance.
The ministry reported total insurance premiumrevenue in 2020 is estimated at 184.7 trillion VND (7.86 billion USD), anincrease of 15 percent compared to 2019. Total non-life insurance premium was 57.1trillion VND (up 8 percent) and life insurance was 127.6 trillion VND (up19.6 percent).
Insurers have paid 48.2 trillion VND forcustomers, a surge of 11.4 percent year on year.
According to the ministry’s Department ofInsurance Management and Supervision, the pandemic has been controlled tocreate a stable business environment for local enterprises, including insurancecompanies, helping them resume and promote business activities.
To achieve the dual goal of both controlling thepandemic and ensuring economic development, the Government has implemented aseries of solutions and policies to remove difficulties and support people andenterprises.
The ministry has also completed policies tosupport insurance companies for the comprehensive and sustainable developmentof the domestic insurance market. That would help the insurance companiesstabilise their business in the context of a sharp reduction in benefits frominvestments and interest rates of government bonds as well as the unpredictabledevelopment of the pandemic.
The ministry has reduced and simplifiedadministrative procedures to remove difficulties for enterprises. It has alsoreduced contributions of insurance companies to the insurance protection fundfrom 0.15 percent of the total insurance premium revenue to 0.05 percent.
Meanwhile, insurance companies have reviewed andcut expenditures to improve operational efficiency, and increased chartercapital to improve financial ability and expand distribution channels. Inaddition, they have promoted the development of health insurance and healthcareproducts.
They have also increased investment in informationtechnology and digital transformation to improve service quality, operationalefficiency and risk management ability.
In addition, people’s demand for insuranceproducts is increasing because their awareness of the importance andsignificance of life and health insurance has been raised significantly,according to the department.
It expects that in the future, the legal frameworkfor the insurance business sector will be completed to create a transparentbusiness environment and favourable conditions for the development of thismarket.
The domestic insurance market has a high and stablegrowth but it is still smaller than its potential, according to the department.In Vietnam, total revenue of the insurance market accounts for 3.07 percent ofthe national GDP, lower than the average rate at 3.35 percent in the ASEANregion, 5.37 percent in Asia and 6.3 percent in the world.
The department also reported that in 2020,insurance companies have contributed to socio-economic development with a totalinvestment of 460.5 trillion VND, up 22 percent over the same period in 2019.
By this year, total assets of insurance businessesare estimated at 552.4 trillion VND, 20 percent higher than the same period in2019.
Total equity is estimated at 113.5 trillion VND, up 18 percent.
Insurance products in many fields are not yetdeveloped on the domestic market, such as for natural disasters, publicproperty, import-export, life and healthcare.
So far, insurance companies have products for manymajor sectors including property, aviation, marine, credit, agriculture andfisheries./.
The ministry reported total insurance premiumrevenue in 2020 is estimated at 184.7 trillion VND (7.86 billion USD), anincrease of 15 percent compared to 2019. Total non-life insurance premium was 57.1trillion VND (up 8 percent) and life insurance was 127.6 trillion VND (up19.6 percent).
Insurers have paid 48.2 trillion VND forcustomers, a surge of 11.4 percent year on year.
According to the ministry’s Department ofInsurance Management and Supervision, the pandemic has been controlled tocreate a stable business environment for local enterprises, including insurancecompanies, helping them resume and promote business activities.
To achieve the dual goal of both controlling thepandemic and ensuring economic development, the Government has implemented aseries of solutions and policies to remove difficulties and support people andenterprises.
The ministry has also completed policies tosupport insurance companies for the comprehensive and sustainable developmentof the domestic insurance market. That would help the insurance companiesstabilise their business in the context of a sharp reduction in benefits frominvestments and interest rates of government bonds as well as the unpredictabledevelopment of the pandemic.
The ministry has reduced and simplifiedadministrative procedures to remove difficulties for enterprises. It has alsoreduced contributions of insurance companies to the insurance protection fundfrom 0.15 percent of the total insurance premium revenue to 0.05 percent.
Meanwhile, insurance companies have reviewed andcut expenditures to improve operational efficiency, and increased chartercapital to improve financial ability and expand distribution channels. Inaddition, they have promoted the development of health insurance and healthcareproducts.
They have also increased investment in informationtechnology and digital transformation to improve service quality, operationalefficiency and risk management ability.
In addition, people’s demand for insuranceproducts is increasing because their awareness of the importance andsignificance of life and health insurance has been raised significantly,according to the department.
It expects that in the future, the legal frameworkfor the insurance business sector will be completed to create a transparentbusiness environment and favourable conditions for the development of thismarket.
The domestic insurance market has a high and stablegrowth but it is still smaller than its potential, according to the department.In Vietnam, total revenue of the insurance market accounts for 3.07 percent ofthe national GDP, lower than the average rate at 3.35 percent in the ASEANregion, 5.37 percent in Asia and 6.3 percent in the world.
The department also reported that in 2020,insurance companies have contributed to socio-economic development with a totalinvestment of 460.5 trillion VND, up 22 percent over the same period in 2019.
By this year, total assets of insurance businessesare estimated at 552.4 trillion VND, 20 percent higher than the same period in2019.
Total equity is estimated at 113.5 trillion VND, up 18 percent.
Insurance products in many fields are not yetdeveloped on the domestic market, such as for natural disasters, publicproperty, import-export, life and healthcare.
So far, insurance companies have products for manymajor sectors including property, aviation, marine, credit, agriculture andfisheries./.
VNA
