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| The Vietnamese insurance market is gradually experiencing a positive recovery, with total premium revenue once again showing growth. |
| Photo : VNA/CVN |
Currently, the Vietnamese insurance market includes 85 companies, including 31 non-life insurance companies, a subsidiary of a foreign non-life insurance company, 19 life insurance companies, two reinsurance companies and 32 insurance brokerage service providers.
In 2024, total market assets are expected to reach 986.6 trillion VND (38.9 million USD), up 9.7% from 2023. Insurance companies reinvested approximately 838.32 trillion VND (33 million USD) in the economy, a jump of 12.58%. Total equity reached 205.3 trillion VND, up 6.63%.
Director of the Insurance Management and Supervision Department of the Ministry of Finance (MoF), Ngô Viet Trung, said that by the end of November 2024, the total insurance premium revenue was estimated at 204.11 trillion VND, up 0.22% from the previous year, while insurance payments amounted to around 86.4 trillion VND, up by 17.13%, which reflects the efforts of insurance companies and the role of the sector in the economy.
However, Vietnam’s insurance take-up rate remains low, representing only around 2% of GDP, compared to an average of 4% in Asia and 9% globally.
Alongside the victims
Ngô Viêt Trung noted that insurance companies are increasingly using information technology throughout their operations, from sales to claims processing, while expanding their distribution networks and offering solutions more comprehensive insurance policies.
-The MoF also works to improve legal frameworks, helping the market operate in a more qualitative, transparent and sustainable manner. This includes requiring insurance companies to improve the quality of advisory activities and services provided by insurance agents, through training, examinations and certifications.
| In 2024, the insurance industry faced significant challenges due to the enormous damage caused by Super Typhoon Yagi. |
| Photo : VNA/CVN |
Furthermore, in 2024, the insurance sector faced significant challenges due to the enormous damage caused by Super Typhoon Yagi and flooding in many northern provinces.
According to Deputy Secretary General of the Vietnam Insurance Association Ngo Trung Dung, the insurance industry has handled claims and paid compensation to customers during various natural disasters, but none was as costly as Typhoon Yagi. .
As of November 22, 2024, the damage caused by Yagi was estimated at 11.461 billion VND, covering both life and non-life insurance. Of this total, more than 10,000 billion VND concern real estate insurance and insurance for construction projects.
Deputy Minister of Finance Le Tan Can said that to ensure sustainable growth of the insurance market, insurance companies must focus on reviewing and adjusting their business strategies to encompass market risks, ensuring sustainability and long-term commitments while complying with legal regulations.
In addition, the insurance industry should diversify its products to meet customer needs, improve service quality and ensure benefits to insurance participants.
VNA/CVN
