2014 result should see insurance sector reach goals for GDP proportion set by National Assembly.
Revenue from insurance accounted for 2.44 per cent of GDP in 2014, putting the sector on track to reach the National Assembly's target of it accounting for 2-3 per cent of GDP in the 2011-2015 period.
As at December 31, 2014, total revenue from the insurance market (including investment) accounted for 2.44 per cent of GDP. In the 2011-2014 period revenue (including investment) grew by an average of 14.4 per cent annually, which was higher than the average GDP growth of 5.5 per cent, according to a report on the implementation of National Assembly Resolutions and a question and answer session with Minister of Finance Dinh Tien Dung.
The minister said there were 60 insurance companies in Vietnam and one branch of a foreign non-life insurer as at March this year, including 29 non-life insurers, 17 life insurers, 12 insurance brokers, and two reinsurance companies.
These insurance companies have established networks in all cities and provinces around the country and have 1,600 branches, offices and transaction points.
In particular, revenue from insurance policies increased by an average of 16 per cent each year during the 2011-2014 period, while revenues from investment rose 8.3 per cent each year. In terms of non-life insurance, revenue from policies grew an average of 11 per cent each year and revenue from life insurance policies by an average of 20 per cent each year.
The minister described the results as “significant”, given that the macroeconomic situation is still yet to stabilize, economic growth remains slow, interest rates are trending downwards, credit is increasing only slowly, and incomes have not improved a great deal.
Regarding subsequent solutions for the sector’s development, Minister Dung said that this year the ministry expects to issue circulars guiding the implementation of micro insurance, modify regulations on civil liability insurance for motor vehicle owners, and will propose the government issue decrees on insurance in the construction sector.
Along with the expansion, development and improvements in the quality of insurance products, voluntary pension insurance, micro-insurance, and fisheries insurance will continue to be implemented. The ministry will also propose the government act on introducing agricultural insurance.