Vietnam insurance market grows 17% in 4 months
Insurance companies have reinvested VND328.7 trillion (US$14.08 billion) into the economy during the four-month period, up 26.5% year-on-year.
Total premiums collected by insurance companies in Vietnam in the first four months of 2019 reached VND44.3 trillion (US$1.89 billion), up 17% year-on-year, according to the Ministry of Finance (MoF).
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Meanwhile, insurance companies have reinvested VND328.7 trillion (US$14.08 billion) into the economy, up 26.5% year-on-year, while equity of insurers amounted to VND83.3 trillion (US$3.56 billion), up 18.3% year-on-year.
During the period, companies paid VND12.5 trillion (US$535.36 million) in insurance benefits to customers, up 31.2% year-on-year.
In 2018, total market premium revenue is estimated at VND133.65 trillion (US$5.75 billion), up 24% year-on-year, marking the fifth year in a row that the Vietnam insurance market has achieved a premium growth rate of over 20%, according to the Insurance Supervisory Authority (ISA).
Upon breaking down, life insurance premiums came at VND87.96 trillion (US$3.78 billion), up 33% year-on-year, and non-life insurance premiums reached VND 45.69 trillion (US$1.96 billion), up 10% year-on-year.
The high growth of the sector was mainly attributed to personal insurance, including life insurance, healthcare insurance and motor vehicle insurance, stated Viet Dragon Securities Corporation (VDSC).
High economic growth, increasing income per capita, aging population, increasing hospital fees and low ownership of vehicles would be the main factors to support the demand for personal insurance in the future, added VDSC.
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, two re-insurers and 13 insurance brokers.
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