HA NOI (VNS)– The insurance industry is expected to maintain a growth rate of 10-12 per cent in 2013, according to the Ministry of Finance's Insurance Supervisory Authority's director Trinh Thanh Hoan.
|Head office of Bao Viet Holdings in Ha Noi. Insurance products and services would be diversified next year to better meet the demands of organisations and individuals ‑ VNS Photo
Insurance products and services would be diversified next year to better meet the demands of a wide range of organisations and individuals, Hoan added when speaking to Dau Tu Chung Khoan (Securities Investment) newspaper.
Insurance premiums this year totaled VND40.858 trillion (US$1.946 billion), representing an increase of 11.7 per cent over 2011. Non-life insurance premiums accounted for about VND22.942 trillion ($1.093 billion), an increase of 11.5 per cent, while life insurance premiums totalled VND17.916 trillion ($853 million), a rise of 12 per cent over last year.
Although experts initially predicted the industry's growth rate would reach 17 per cent, it failed to do so, in large part due to the impact of the global economic downturn.
However, Hoan said, the market remained stable and foreign investors saw rich potential in the Vietnamese insurance market.
Insurance enterprises accumulated VND90.591 trillion ($4.314 billion) to reinvest in the economy this year, 9 per cent more than in 2011. This sum came from a combination of Government and enterprise bonds, deposits, securities, real estate and contributions to enterprises' capital.
Hoan estimated that next year's investment would hit VND95 trillion ($4.524 billion), although difficulties would continue to besiege financial, banking and real estate sectors, making it difficult to expand the market.
Recently, the Ministry of Finance issued Decision 2330/QD-BTC, which aims to develop the insurance market by 2015 into a safe, sustainable and efficient market.
The six measures addressed in the decision include making enterprises more competitive and diversifying distribution channels. — VNS