The macroeconomic situation has an impact on the insurance market in the first months of this year, but the insurance businesses still post good business performances. — File Photo

HA NOI (Biz Hub)  — The insurance market grew 12.6 per cent in the first half of this year compared to the same period last year despite the slow economic recovery, decreased interest rates and low credit growth.

The online portal Viet Nam Economic News quoted Deputy Director of the Insurance Supervisory Authority (ISA) under the Ministry of Finance Pham Dinh Trong as saying that the macroeconomic situation had an impact on the insurance market in the first months of this year. However, insurance businesses still posted good business performances. They earned premiums totaled VND24.129 trillion (US$1.132 billion) in the first half of 2014 (up 12.6 per cent from the same time in 2013), of which non-life premiums reached an estimated VND13.077 trillion or $613.94 million (up 7.3 per cent) and life premiums came to VND11.052 trillion or $518.87 million (up 19.5 per cent).

In the first half of this year, insurance companies paid an estimated VND9.806 trillion ($460.375 million) in compensation, of which life insurance companies paid about VND3.894 trillion ($182.81 million) and non-life insurance businesses paid VND5.912 trillion ($277.558 million). Insurance businesses invested in the economy an estimated VND116.318 trillion ($5.46 billion), up 12.4 per cent from the same period in 2013, of which life insurance companies invested about VND93.137 trillion or $4.372 billion (up 16 per cent) and non-life insurance companies invested about VND23.181 trillion or $1.088 billion (up 0.05 per cent).

Along with expanding retail services, selling products through the banks and launching new products, insurance businesses focused on business administration to control their risks. In the first half of this year, the insurance industry rapidly and timely assessed and paid in advance compensation to businesses affected by the disruption in Binh Duong, Dong Nai and Ha Tinh provinces.

Deputy Minister of Finance Tran Xuan Ha assessed that the quick claim settlement helped businesses stabilise trading and production activities, contributing significantly to the protection of reputation and image and improving the investment environment of Viet Nam, while at the same time proving the significance of insurance for the economy as well as for each organisation or individual.

Trong said that in the first half of this year, ISA worked with relevant authorities to inspect a number of life and non-life insurance businesses including the AIA, Manulife, Dai-ichi, Hanwha Life, VASS, AAA and BSH.

ISA launched many programmes to maintain the stability and development of the insurance market. ISA Director Phung Ngoc Khanh said that management agencies would step up the inspection and supervision of insurers and insurance brokerage businesses and promote insurance business efficiency assessment. — VNS