Insurance market maintains stable growth rate

The insurance market continued to maintain stable growth rate in the first 10 months of the year, according to the Ministry of Finance (MoF).

The total premium collected by insurance firms in the market in the January-October period surged by 20 per cent to VNĐ84.2 trillion. - Photo tapchitaichinh.vn

The ministry said total insurance payment in the period reached more than VNĐ23.9 trillion (US$1.05 billion), of which total insurance payment from non-life insurance companies was estimated at VNĐ12.06 trillion.

Insurance companies have ensured payment to buyers, it added.

MoF’s report also revealed that the total premium collected by insurance firms in the market in the January-October period surged by 20 per cent to VNĐ84.2 trillion.

During this period, insurance companies invested VNĐ236.1 trillion in the economy, a rise of 21.8 per cent compared with the corresponding period in 2016.

Of the total sum, revenue from life insurance premiums was VNĐ199.8 trillion and from non-life insurance premiums was VNĐ36.3 trillion, increasing 32 per cent and 9 per cent respectively from the same period last year.

The ministry said management and supervision in the market have been strengthened to improve transparency of insurance companies’ operations.

In the near future, the ministry will continue to complete policies and mechanisms for the insurance industry. In addition, it will complete a draft decree on compulsory insurance for fire and explosion to replace Decree No 130/2006/NĐ-CP and a draft decree on penalties on violations of insurance operation.

The MoF will also encourage insurance companies to diversify insurance products.

The life insurance targeted a total premium revenue of VNĐ62.3 trillion this year, increasing 23.4 per cent while the non-life insurance targeted VNĐ40 trillion total premium or 9.4 per cent increase from last year.

Source VNA