Insurance industry to maintain growth
After failing to grow by double-digits in 2013, the insurance market is expected to grow modestly this year, on the back of an economic recovery and stock market gains.
The introduction of new products and the increased diversification of distribution channels are likely to boost growth as well.
Hoang Viet Ha, chief operating officer of the Bao Viet Insurance group, said with economic growth forecast at between 5.4% and 5.6% this year, the insurance market is likely to maintain the growth rate of the previous year.
The non-life insurance segment is predicted to expand by about 8%, while the life insurance segment is expected to increase by around 15%.
Ha said the implementation of the voluntary pension insurance scheme and new products will stimulate life insurance services this year. In the non-life insurance segment, insurance providers will further diversify their distribution channels to spur growth.
The industry is aiming for a more stable and sustainable growth rate and is determined to undertake restructuring measures, including reducing capital from non-core businesses, he was quoted as saying by Vietnam Investment Review.
Luong Quang Ban, deputy director of PetroVietnam Insurance, said the insurance market in Vietnam could achieve double-digit growth this year, driven by an economic recovery and stock market gains.
However, general director of the BIDV Insurance Corporation Ton Lam Tung told Vietnam Financial Times that 2014 will remain a difficult year for the insurance market and the non-life insurance segment, in particular, adding that double-digit growth would be a challenge.
According to the statistics from the Insurance Supervision Authority, Vietnam has 59 insurance companies, which generated total revenues of more than VND45 trillion (US$2.15 billion), representing an increase of 10% over 2012.