Deputy Minister of Finance Huynh Quang Hai (Photo: VNA)
HCM City (VNS/VNA) - Thelife insurance industry will grow at over 25 percent this year, accordingto the Insurance Association of Vietnam (IAV).
Its acting chairman, Tran Vinh Duc, said: “TheVietnamese economy is expected to grow at a rate of between 6.8 percent and 7percent in 2019. Demand for insurance, particularly life insurance, willincrease as more and more people and organisations started caring aboutinsurance products. Thus, the market will keep growing.”
In a report released this week, the associationsaid last year the life insurance market performed well, earning revenues ofnearly 116 trillion VND (5 billion USD).
Of this, 88 trillion VND (3.8 billion USD) wasfrom premium income, an increase of 33 percent, and the remaining 28trillion VND (1.2 billion USD) was from proprietary investment, a 30 percentrise, the association said.
“Life insurers’ financial capacity improved withtotal assets rising 25 percent to 302 trillion VND (13 billion USD)” Duc said.
The total provision made last year by companieswas nearly 220 trillion VND (9.5 billion USD), up 30 percent, he said.
Life insurers settled claims of morethan 18.6 trillion VND (800 million USD) in 2018, up 17 percent, he said.
The industry is making a great contribution to theeconomy, supplementing long-term investment in the economy last year by 276trillion VND (11.9 billion USD), a 33 percent increase.
At a ceremony to mark the 25th VietnamInsurance Day and 19th anniversary of the Insurance Association of Vietnam in Hanoi last month, Deputy Minister of Finance Huynh Quang Hai stressedthe need to raise public awareness of insurance, improve the industry’sfinancial capability and develop new insurance products.
He called on the IAV and the Ministry of Financeto help draft an Insurance Business Law.-VNS/VNA
VNA
