A customer during a policy consultation. Insurance benefits payout in the first quarter of 2024 reached more than VNĐ20.98 trillion, an increase of 20.5 per cent over the same period in 2023. — Photo courtesy of Baoviet Life Corp

HÀ NỘI — Việt Nam’s insurance premium revenue in the first quarter of 2024 continued to decrease by 4.3 per cent compared to the same period last year to more than VNĐ53.29 trillion, the General Statistics Office reported.

Of the total revenue, the life insurance sector represented VNĐ33.74 trillion, down 10.9 per cent; and the non-life insurance sector contributed to more than VNĐ19.55 trillion, up 9.8 per cent.

With the move, insurance premium revenue has declined for the fourth consecutive quarter. However, the rate of decrease in the first quarter of 2024 slowed compared to previous quarters.

At the same time, the non-life insurance sector has continued to maintain steady growth.

Insurance benefits payout in the first quarter of 2024 reached more than VNĐ20.98 trillion, an increase of 20.5 per cent over the same period in 2023.

Insurance companies reinvested nearly VNĐ779.12 trillion into the economy in the period, up 10.4 per cent over the same period in 2023.

By the end of the first quarter, total assets of insurance companies were estimated at nearly VNĐ932.87 trillion, an increase of 10.2 per cent.

The insurance sector recorded double-digit premium revenue growth in about ten consecutive years before 2023. However, insurance premium revenue has declined since 2023 following an insurance crisis, during which consumer trust was said to be at an all-time low after numerous scandals broke out. The crisis has negatively impacted the entire insurance industry and has forced management authorities to take actions to rectify the sector.

Since the crisis, regulatory agencies and insurance companies have taken measures to reassess the situation, considering it an opportunity to cleanse and readjust the market after a period of rapid growth. The focus is on developing the market sustainably, transparently and safely.

Solutions have been proposed by the Ministry of Finance’s Insurance Supervisory Authority (ISA) to enhance market transparency and safeguard the rights of insurance participants.

According to Phạm Thu Phương, deputy director of the ISA, the department completed the inspection of five insurance companies, including three life insurance companies and two non-life insurance companies, in 2023.

The inspections found that insurance companies mainly violated regulations on supervising and managing insurance agents. Accounting of insurance companies were also still negligent, Phương said, adding the ISA carefully reviewed the violations and imposed fines.

In 2024, according to the approved plan, the ISA will inspect six insurance companies. It will inspect the implementation of insurance sales through credit institutions and foreign bank branches for two life insurance companies Mirae Asset Prévoir Life Insurance Co., Ltd and Cathay Life Insurance Vietnam Co., Ltd. — VNS