Insurance Market Promising Strong Growth

According to Insurance Supervisory Authority, Ministry of Finance, Vietnam insurance market is expected to see growth of 19 – 21 percent and total premium of VND 43,000 billion.

 

Information released by the authority also demonstrated that difficulties and obstacles to market development would be handled soon.

 

Mr Trinh Thanh Hoan, Head of Insurance Supervisory Authority said that in 2012, regarding outstanding matters in the market such as unfair competition, insurance profit seeking, human resource etc, there would foster management activities and strict settlement methods. Distance supervision, investigation in insurance enterprises at site would be comprehensively implemented to timely detect and tackle unfairly competitive action such as premium reduction, late compensation payment, and inappropriate investment category. Also according to Mr Hoan, restructure was considered to add wings to insurance businesses to overcome challenges and more importantly help to make the market sound, safe and sustainable, which will strengthen financial capacity to enterprises. Ministry of Finance will complete institution, intensify monitoring activities to ensure market activities bring efficiency to the whole economy, citizens and insurance enterprises.

 

According to Association of Vietnamese Insurers, hard economic context in 2012 will still create negative impacts on insurance market and branches of foreign non-life insurance enterprises will be established and operate in Vietnam. However, under estimation of Association of Vietnamese Insurers, there’s still a large field since recent time has seen mechanism and policies open and create many new segments for enterprises.

 

Targeting total turnover over VND 6,580 billion, growth rate of 14.5 percent against 2011 and pre-tax profit of VND 426 billion, Bao Viet Insurance Group aims to keep the leading position, emphasize on individual insurance packages, focusing on human insurance group and head to online selling.

 

Ms Do Thi Kim Lien, Director General of AAA Insurance Joint Stock Company, said that in 2012, AAA will compete in its own way such as global health insurance, motorbike loss insurance, mobile insurance etc and aim at construction insurance, property and fire insurance packages. Meanwhile, beside product diversification, BIDV Insurance Corporation has changed operation model to Joint Stock group, restructured personnel organization, changed business management mechanism to maximize business efficiency in long-term.

 

In 2012, attitude toward competition and growth has changed when many enterprises announced to emphasize on efficiency instead of scale as before, in which there were included plans of products, service quality improvement, giving priority to information technology development, human resource training and product list diversification. Insurance enterprises estimated that complete insurance business environment and active participation of authority, comprehensive, transparent legal corridor will create favorable conditions for them in business operation and contribute to strong growth of Vietnam Insurance market since 2012.