Revenue targeted at 4% of GDP by 2020.
Vietnam’s insurance market grew 16 per cent each year in the 2011-2015 period, rising from VND46.958 trillion ($2.1 billion) in 2011 to VND84.375 trillion ($3.78 billion) in 2015, according to Mr. Phung Ngoc Khanh, Director of the Insurance Commission at the Ministry of Finance.
Life insurance grew 24.6 per cent and non-life 11.7 per cent.
Total property insurance in the period was $524.5 billion, with property insurance for enterprises being $479.68 billion. The value of life insurance policies was $44.83 billion and health insurance $31.38 billion.
Mr. Khanh said that the insurance market has reached the targets in its development strategy for the 2011-2020 period. Revenue from insurance in 2011-2015 was targeted at 2 to 3 per cent of GDP and 3 to 4 per cent by 2020. Revenue in 2015 of $3.78 billion represented 2 per cent of GDP.
Total stand-by funding reserved for claim payouts was $5.86 billion as at the end of 2015; 2.36 times higher than in 2010. Total mobilized funds for the economy was targeted to increase 1.7 times by 2015 and by 3.5 times by 2020.
Reinvestment in the economy was $7.05 billion by 2015; 1.99 times higher than in 2010. Insurance also contributed $223 million to the State budget.
- Phung Ngoc Khanh