Vietnam: Insurance industry posts US$4.5 bln in total revenue in 2016
Source: Asia Insurance Review | Feb 2017
Vietnam’s insurance market registered robust growth last year with the life insurance segment gaining the strongest growth in 10 years.
The insurance market reported a total revenue of VND102 trillion (US$4.5 billion), including insurance premiums of roughly VND86.05 trillion and investment income of VND15.7 trillion, reported VietNamNet Bridge citing MsPham Thu Phuong, deputy head of the Insurance Supervisory Authority under the Ministry of Finance.
Total premium growth last year was 22.7% with life insurance premiums shooting up by 30.5%, a record high in years, and non-life insurance premiums climbing by 12.5%.
The Finance Ministry estimated that insurers invested VND186.57 trillion in the economy last year, a 16% pickup from a year earlier, with 75% of the amount for long-term investment. Insurers paid out VND25.87 trillion in claims.
Insurers’ total assets neared VND240 trillion, up 18%, and their equity reached a combined VND53 trillion, increasing by 15%.
Mr Nguyen Quang Hung, deputy general director of Bao Viet Insurance Corporation, said that given bright macro-economic prospects, the insurance market is forecast to achieve double-digit growth in 2017.
Mr Paul Nguyen, CEO of Manulife Vietnam, expects to see the introduction of several new products this year like voluntary pension insurance, health insurance and investment-linked insurance.