Vietnam insurance sector targets 3pct of GDP in 2015

By the end of 2010, the insurance sector’s investment capital to the economy reached 75.115 trillion dong, increasing 11.95 percent compared to 2009.

In 2011, Vietnam’s insurance sector will build a circular guiding the implementation of the Decision of the prime minister on the implementation of pilot export credit insurance and agricultural insurance.

On March 18, the insurance management ‐ supervision department of the Vietnamese Ministry of Finance held a workshop on the evaluation of the domestic insurance market in 2010 and orientated insurance activities in 2011, and also to discuss draft strategy on developing the insurance market from 2011 to 2020.

According to Trinh Thanh Hoan, director of the insurance management ‐ supervision department, total insurance premium revenue in 2010 reached 30.796 trillion dong (up 20.72 percent compared to 2009).

Total revenues of the insurance brokering was 270 billion dong, increasing 22.39 percent compared to 2009.

Total investment sales activity in 2010 reached 7.370 trillion dong, up 16.2 percent compared to 2009.

By the end of 2010, the insurance industry had raised the capital at 75.115 trillion dong to invest back to the economy, up 11.95 percent compared to 2009.

In 2010, the total amount of compensation and insurance payments of the insurance industry was estimated at 11.583 trillion dong, up 19.15 percent over the previous year.

In 2011, according to Hoan, the insurance sector is expected to propose to the government to issue a decree which shall detail some articles of the Law amending and supplementing some articles of the Law on Insurance Business.

The construction will also start on a circular guiding the implementation of the Decision of the prime minister on pilot export credit insurance and agricultural insurance.

Also in 2011, the department plans to inspect two insurers, make a comprehensive examination of five insurance companies and three non‐life insurance brokerage business, special inspection on the separation of funds, allocation of profits and risk reserve provisioning of three life insurance businesses.

In Vietnam’s insurance market development strategy in 2011 – 2020 to be submitted to the government, the local insurance industry aims to reach 3 percent of GDP in 2015 and 4 percent of GDP by 2020.

Tags: Vietnam insurance market