Vietnam’s insurance industry grows 25% in 9 months
Upon breaking down, non-life insurance companies’ revenue reached VND33.9 trillion (US$1.45 billion) and life-insurance companies VND59.86 trillion (US$2.57 billion).
In this period, companies paid VND25.15 trillion (US$1.08 billion) in insurance benefits to customers, up 18.68% year-on-year. Of the total, non-life insurance companies paid VND13.45 trillion (US$577.46 million) and life insurance companies of VND11.7 trillion (US$502.32 million).
In the first nine months of 2018, total assets of insurance companies operating in Vietnam were reported at VND369.84 trillion (US$15.88 billion), up 29.65% year-on-year. Among them, assets of non-life insurance companies amounted to VND78.33 trillion (US$3.36 billion) and those of life-insurance companies reached VND291.51 trillion (US$12.51 billion).
During the January – September period, insurance companies reinvested VND293.31 trillion (US$12.59 billion) into the economy, up 26.8% year-on-year. Of the sum, non-life insurance companies invested VND38.95 trillion (US$1.67 billion) and life insurance companies VND254.36 trillion (US$10.92 billion).
Meanwhile, equity of insurers reached VND77.81 trillion (US$3.34 billion), up 50.93% year-on-year.
The Insurance Supervisory Authority (ISA) under the Ministry of Finance informed in July that it would step up efforts in restructuring the insurance market towards transparency, safety and efficiency in the remaining months of the year.
According to the Vietnam Insurance Association, up to 18 companies are active in Vietnam’s life insurance market. Except for Bao Viet Life Insurance, which is a Vietnamese business, the remaining ones are joint ventures and wholly foreign-owned insurers, including the presence of the world’s leading finance and insurance groups.
Overall, Vietnam has 63 insurance companies, of which 30 are non-life insurers, 18 life insurers, 02 re-insurers and 13 insurance brokers.
In 2018, Vietnam’s insurance market revenue is set to grow 22.38% year-on-year to reach VND129.2 trillion (US$5.68 billion).
The market’s revenue in 2017 reached VND105.6 trillion (US$4.64 billion), up 21.2% year-on-year, marking the fourth consecutive year with growth rate exceeding 20%.