Total premium collected by all insurers in Vietnam climbed by 21% to VND57 trillion (US$2.5 billion) for the first seven months of the year, according to the industry regulator.
The Insurance Supervisory Authority (ISA) of Vietnam’s Ministry of Finance reported that life insurance premiums were at VND34.4 trillion (US$1.5 billion), while general insurance premiums were VND22.7 trillion (US$1.2 billion) for January to July 2017. This represents a 31.4% and 10.44% year-on-year increase, respectively.
The insurance sector brought in VND218.57 trillion (US$9.6 billion) to the economy, a 20.2% rise compared to the same period last year. Insurance companies’ total assets also grew 15.8%.
Forecasts by the Insurance Association of Vietnam said that the life insurance sector is expected to grow by 25% this year, while the general insurance sector is anticipating a 14% growth rate. According to the association, the growth is due to increased awareness among individuals and businesses about insurance.
The country’s rapid economic growth, with GDP growth pegged at 6.7% for 2017, is also advantageous to the insurance sector. Government policies, such as promotion of property and disaster insurance, also send a positive signal and will boost the market, said the association.
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