The Association of Vietnamese Insurers (AVI) projected that the local insurance industry can collect VND46.4 trillion premiums this year, up 24 percent from one year earlier.
Of the total, non-life insurance premiums are forecasted to jump 28 percent to VND27.5 trillion ($1.3 billion), while life insurance premiums are expected to grow 18 percent to VND18.9 trillion ($900 million). Data showed that total revenue of the entire insurance market reached VND37.5 trillion last year, up nearly 22 percent over the same period in 2010.
The Ministry of Finance (MOF) voiced to start restructuring the insurance sector this year to promote strong and sustainable growth of the industry and to ensure the stability of the whole financial market in Vietnam.
Earlier, A.M. Best Company, the world’s oldest and most authoritative insurance rating and information source, said in a recent report that the insurance industry in Vietnam has expanded significantly after the country joined the World Trade Organisation (WTO) back in 2007.
Economic development and population expansion have boosted local demand for insurance, leading to the rapid growth of this sector in recent years. However, the insurance industry is currently confronted with challenges from intense competition due to inflationary pressure.
The country currently has 29 non-life insurance and 14 life insurance companies.