In 2019, the insurance industry aims to continue its growth momentum, expected to be at 20 percent, and enhance safety, sustainability and efficiency. It was stated by the Insurance Supervision and Management Department (Ministry of Finance) at the recently held annual conference of Vietnam insurance market in 2019.
Accordingly, the report of the Department of Insurance Management and Reduction showed that in 2018, the insurance market kept the growing trend; Mechanisms and policies in the field of insurance continued to be perfected, insurance companies ensured financial safety, improved competitiveness, grew and developed effectively.
By the end of 2018, the insurance market had 64 insurance companies, including 30 non-life insurance companies, 18 life insurance companies, 2 reinsurance companies and 14 insurance brokers. There is also a branch of a foreign non-life insurance company.
Also in 2018, total assets of insurance companies were estimated at 394.192 trillion dong, an increase of 25 percent compared to 2017. Of which, non-life insurance companies were estimated at 82.903 trillion dong, life insurance companies 311.289 trillion dong.
Investment in the economy of the insurance industry was estimated at 321.165 trillion dong, up 30 percent compared to 2017. Of which, investment from non-life insurance companies is estimated at 42.648 trillion dong, life insurance companies 278.517 trillion dong.
Total provision for insurance operations in 2018 was estimated at 241.279 trillion dong, up 27 percent, and total equity 81.558 trillion dong, an increase of 24 percent compared to the previous year.
Total insurance revenue in 2018 was estimated at 160.444 trillion dong, equivalent to 2.9 percent of GDP, up 21 percent compared to 2017. Of which, total revenue from fee was estimated at 132.947 trillion dong, up 23 percent compared to 2017, non-life insurance fee revenue 46.713 trillion dong, life insurance fee revenue 86.234 trillion dong. Revenue from investment activities was estimated at 27.497 trillion dong.
Insurance benefit was estimated at 38.524 trillion dong, of which 19.874 trillion dong was from non-life insurance companies, 18.650 trillion dong from life insurance companies.
In addition, the total insurance fees arranged by insurance brokers in 2018 were estimated at 9.652 trillion dong, an increase of 0.09 percent compared to 2017.
Regarding the development orientation and growth target in 2019, the Insurance Management Department announced to continue to build and perfect institutions and laws on insurance business to approach international standards and practices.
Along with that, it will continue to maintain the growth momentum of the market with expected growth rate of 20 percent, and enhance safety, sustainability and market efficiency to meet the diverse insurance needs of organisations and individuals, contribute to stabilising the economy and ensure social security.
To achieve this goal, the leader of the Ministry of Finance has proposed that the Insurance Administration Department should focus on implementing contents such as completing the legal framework for insurance market, especially building and implementing a specific plan on the insurance market restructuring scheme.
Insurance companies and brokers should be proactive in improving financial capacity, corporate governance capacity and business capacity.
Along with that, they should review the existing business activities and insurance products in order to meet the needs and capacity of organisations and individuals in the most effective way.
In addition, insurance companies should also strengthen their cooperation and information sharing to avoid unfair competition that might affect the safety of the financial market.
Insurance Association should actively promote its role of connecting management agencies and insurance companies.
In addition, it should cooperate with domestic and foreign agencies and organisations in training human resources on professional skills, management and insurance business experience to promote its role in developing insurance market.
