Việt Nam’s insurance premium revenues grew again in the third quarter of 2024 after five consecutive quarters of decline due to a crisis of confidence.

Newly released data from the General Statistics Office (GSO) shows the total revenue from insurance premiums in the third quarter of 2024 was estimated at VNĐ56.4 trillion, an increase of 6.9 per cent over the same period in 2023. This was the first quarter since the second quarter of 2023 that insurance premium revenue growth recorded positive results.

Despite the recovery, revenues in the third quarter of 2024 were still lower than in the first quarter of 2023, before the crisis of confidence in the insurance market began and the management authorities took action to rectify this sector. For about ten consecutive years before 2023, the insurance sector has recorded double-digit growth in premium revenues.

However, the insurance sector fell starting last year, after clients complained of vague provisions in life insurance contracts that favoured insurance companies rather than clients. In addition, bancassurance also faced criticism, as clients were reportedly forced to buy insurance packages as a condition of being able to take out bank loans.

In the first nine months of 2024, total insurance premium revenues reached VNĐ165.5 trillion, still down 0.4 per cent over the same period last year.

Out of this total, premium revenues in the non-life insurance segment made up VNĐ58.5 trillion, up 12.9 per cent. This is because the segment was not as affected by the crisis of confidence. However, premium revenues in the life insurance segment was nearly VNĐ107 trillion, down 6.5 per cent.

The life insurance segment still continues to face difficulties after the crisis of confidence in early 2023. The main driver for the insurance industry’s growth in the third quarter of 2024 and the first nine months of 2024 came from the non-life insurance segment.

Insurance payments over this period were VNĐ64.1 trillion, up 18.4 per cent over the same period last year.

Meanwhile, the insurance industry reinvested VNĐ821.2 trillion into the economy, up 10 per cent.

Total assets of insurance companies were estimated at VNĐ978.9 trillion, up 9.8 per cent.

The insurance industry has recently continued to face difficulties due to the consequences of Typhoon Yagi. According to reports from insurance companies, as of September 20, the life insurance industry recorded 23 deaths due to the typhoon. The total insurance payouts were estimated at around VNĐ13 billion.

For non-life insurance, companies have received about 12,000 reports of damage to property, motor vehicles and health insurance payouts, with a total estimated cost of about VNĐ9 trillion caused by Typhoon Yagi. — VNS