Insurance sector to restructure for stronger growth
The insurance sector will focus on restructuring the market as well as its businesses so as to maintain stability and sustainable development.
The industry expects to see a total premium of VND43.711 trillion (US$2.082 billion) this year, a rise of 6.5% over last year, according to the Ministry of Finance’s Insurance Supervisory Authority (ISA).
Non-life insurance is hoping for a record growth rate of 5%, to reach VND23.9 trillion while life insurance is aiming at VND19.7 trillion, an increase of 9% year-on-year.
The total investment made by the insurance sector is projected at VND7.3 trillion, up 10% over last year.
To meet these targets, several insurance firms have consented on becoming more professional and improving the quality of their services.
The Post and Telecommunications Insurance Joint Stock Company (PTI) says that it will improve the quality of its key products.
The AIA Insurance Company plans to develop its agencies into a standard.
The Bao Minh Insurance Joint Stock Company says it wants to develop its distribution network, restructure its range of products and investments structure, and improve the quality of services.
The sector experienced a lower rate of growth in the first half of this year because of economic difficulties.
Statistics from the ISA show that non-life insurance premiums in the first six month of this year stood at VND11.8 trillion (US$562 million), up only 2.2% over the same period last year.
Life insurance also struggled to maintain a growth rate of 13%, making just VND9.1 trillion (US$434 million).
In total, insurance premiums experienced a growth rate of 6.86% over the same period last year.