Local insurers have targeted to increase their total assets to VND514.80 trillion this year. — Photo baodautu.vn

The insurance industry aims to maintain a high growth rate of 18.42 per cent this year, gaining revenue of VND188.73 trillion (US$8.1 billion), according to the Ministry of Finance’s Insurance Supervisory Authority (ISA).

Besides the high growth in revenue, insurers have also set to increase their total assets by 13.3 per cent against last year to VND514.80 trillion in 2020, while reinvesting into the economy VND433.06 trillion, up 15.1 per cent against last year.

To meet the targets, Pham Thu Phuong, deputy director of ISA, said the authority would continue to improve mechanisms and policies, focusing on restructuring to make the insurance market develop transparently, safely and efficiently as well as in line with international standards.

“In particular, ISA will focus all resources to complete the revised Law on Insurance Business as well as regulations to guide the implementation of the law to make it accordance with the country’s socio-economic development directions as well as international rules,” Phuong said.

Notably, Phuong said, in order to further develop the market and improve the quality of insurance services, ISA would continue to consider and submit to the Ministry of Finance for licensing eligible foreign investors in insurance and re-insurance in Viet Nam.

Besides deploying agricultural products as proposed by insurers, the agency would also coordinate with other related agencies to research and deploy other new insurance products in 2020.

Deputy Finance Minister Huynh Quang Hai said ISA also needed to closely scrutinise and have comments from experts and insurers to draft the best revised Law on Insurance Business before submitting it to the authorities for consideration.

In addition to maintaining stable and sustainable growth of the market, besides promoting the training and publication of legal policies, Hai also requested ISA to further strengthen the inspection, supervision and handling of violations in the context of the insurance market’s fast growth.

Phuong reported that the insurance market retained a high revenue of VND160.18 trillion in 2019, up 20.54 per cent against the previous year.

Of this total, the revenue from non-life insurance premiums was nearly VND52.39 trillion and life insurance premiums was VND107.79 trillion.

Besides maintaining a high growth rate, the financial status of insurance firms has also improved in 2019, Phuong said. Their total assets are estimated to have risen to 15.3 per cent to VND454.38 trillion.

During the period, insurance companies re-invested nearly VND376.55 trillion into the economy, marking a rise of 16.36 per cent year-on-year. They also paid out VND44 trillion to customers.

According to experts, the fast-growing domestic insurance market should keep thriving thanks to rising living standards and a high gross domestic product (GDP) growth of more than 6 per cent annually over the next three years.

The growth potential is great as the country has one of the world’s lowest life insurance penetration levels at less than 1 per cent of GDP. The average insurance premium in Viet Nam stands at $30, much lower than the global average of $595 and Southeast Asia’s average of $74.

ISA reported that the country has 66 insurance companies, which provide more than 850 non-life insurance products and 450 life insurance products. — VNS