Insurance premium payments up 14% in six months

Insurers in Vietnam collected premium payments worth VND94,484 billion ($4.04 billion) in the first half of 2022, up 14.23% year-on-year.

This included VND28,055 billion ($1.2 billion) from non-life insurers and VND66,429 billion ($2.81 billion) from life insurers, up 13.58% and 14.5% year-on-year, respectively, according to a Ministry of Finance report.

The growth figures indicate that the insurance market in Vietnam had overcome global and local difficulties including the pandemic, the report said. They also showcased the sector’s high potential for sustainable and stable growth, it added.

In 2021, the total premiums collected by insurance companies in Vietnam reached VND214,958 billion ($9.2 billion), up 15.59% year-on-year.

Currently, Vietnam is home to 76 insurance companies, including 31 non-life insurers, 19 life insurers, two reinsurers, 24 insurance brokers, and one foreign non-life insurer branch. Their total asset value reached VND744,877 billion ($31.88 billion) - VND106,519 billion to non-life insurers and VND638,358 billion to life insurers.

Ngo Trung Dung, general secretary of the Insurance Association of Vietnam (IAV), said the life insurance market grew at 25%-30% a year in the 2011-2019 decade before falling to 17%-18% in the last two years. He said the slower pace was normal amid strong growth.

Under the national financial strategy until 2030 approved by the Prime Minister, the insurance premium revenues are set to grow by 15% a year in 2021-2025 and 10% a year in the next five years (2026-2030).

The sector's revenue is expected to equal 3%-3.3% of the GDP by 2025 and 3.3%-3.5% by 2030. Towards this, the legal framework will be improved, products diversified, information technology applied, transparency enhanced and state management and inspection strengthened, according to the stragegy.