Domestic insurance market expects double digit growth in 2022

Transactions at Bao Viet Insurance Company. Total insurance payments are estimated at VND58.2 trillion, representing a 17.6 per cent year-on-year increase. - Photo courtesy of the firm

“All of the important targets in the insurance market this year are forecast to achieve double digit growth despite of challenges,” the department said.

Total insurance payments are estimated at VND58.2 trillion, representing 17.6 per cent year-on-year increase.

This year, the department will continue to coordinate in completing the draft amended Law on Insurance Business to submit to the National Assembly for approval in May.

At the same time, it will create decrees and circulars guiding the law while continuing to complete the development strategy on Vietnam's insurance market for 2021-30 to submit to the Government.

In addition, it will continue to strengthen the assessment of insurance businesses periodically, promptly detect violations to report to the Ministry of Finance for handling.

It will also implement the project "Information system for management and supervision of insurance business activities" and enhance effectiveness, transparency and sustainability in the market.

The department said that last year Vietnam's insurance market achieved impressive results despite the COVID-19 pandemic’s impacts on the country.

In 2021, total insurance premium revenue was VND214.9 trillion, representing 16 per cent year-on-year increase. Insurers paid VND49.5 trillion, up 1.68 per cent.

By the end of 2021, the total assets of the insurance market reached VND71 trillion, an increase of 23.86 per cent over 2020. Of which, the total assets of non-life insurance companies were estimated at VND104.6 trillion, and those of life insurance companies at VND605.3 trillion.

Insurance enterprises' investment into the economy stood at VND577 trillion, an increase of 22.24 per cent from the previous year. Total insurance provision in 2021 was up 25 per cent to VND455.6 trillion.

The country has 76 insurance businesses, of which there are 31 non-life insurers, 19 life insurers, two reinsurance businesses, 24 insurance intermediate firms and a branch of a foreign non-life insurer.