Total revenue in Vietnam’s insurance sector was estimated at VND105.6 trillion ($4.6 billion) in 2017, an increase of 21.2 per cent against 2016, according to the Insurance Supervisory Authority (ISA) at the Ministry of Finance (MoF).

Premiums for non-life insurance totaled VND40.6 trillion ($1.8 billion), up 10.6 per cent over 2016, while life insurance premiums rose 28.9 per cent to VND65 trillion ($2.8 billion). Insurance companies invested an estimated VND247.8 trillion ($8.3 billion) back into the economy, an increase of 26.74 per cent against 2016.

Total assets were estimated at VND302.9 trillion ($10.9 billion), up 23.4 per cent, while payouts were VND29.4 trillion ($1.2 billion), up 14.9 per cent.

According to the ISA, total revenue for 2018 is to reach VND129.2 trillion ($1.3 billion), an increase of 22.38 per cent against 2017. Total assets are to stand at VND370.8 trillion ($16.3 billion) and investment into the economy will reach VND305.5 trillion ($13.4 billion).

With a stable economic outlook, the insurance sector should strive to maintain growth of more than 20 per cent next year, Deputy Minister of Finance Tran Xuan Ha told a recent conference.

He suggested that the ISA soon implement a project on applying information technology in insurance management, accelerating the development of the sector’s general data, and then develop a common database on the insurance business and insurance risk in order to determine appropriate premiums.

Some insurers have said that the Ministry should detail the profit targets of the insurance industry in 2018, which customers can take as a measure when assessing a particular insurer. Many insurers announce growth in revenue but still incur losses.

VN Economic Times