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Vietnam’s insurance industry grew 24.35% year-on-year for the first half of 2018, with total revenue exceeding VND58.65 trillion (US$2.58 billion).
According to Doan Thanh Tuan, deputy general director for Vietnam’s Insurance Supervisory Authority (ISA), insurers were able to maintain a high growth rate and increase their assets, with total assets under management reaching VND337 trillion (US$14.9 billion), up 27.3% year-on-year, reported Vietnam Plus.
Insurers re-invested VND277.38 trillion (US$12.2 billion) into the economy, an increase of 27.5%, Tuan said. Claims paid out also increased by 22.43% to VND16.32 trillion (US$719 million).
Tuan said that the ISA will work throughout the year to restructure the country’s insurance industry by improving transparency, safety, and efficiency.
For the entire year of 2018, the insurance sector aims to grow by 22.38%. If it meets the yearly target, it will be the fifth consecutive year that Vietnam has exceeded insurance industry growth of 20%. In 2017, it was able to grow by 21.2%.
Phung Ngoc Khanh, ISA general director, said that the insurance market has high potential due to low penetration and increasing incomes and awareness among consumers. Vietnam’s GDP is projected to grow by more than 6% annually for the next three years, which will greatly benefit the insurance industry.
Several global insurers, such as Generali and Prudential, have ramped up their investments in the country, increasing their charter capital and expanding their business operations in anticipation of rapid economic growth.
