Outlook for Vietnam’s insurance market

A look back on 2023

Vietnam's insurance market experienced many difficulties and challenges in 2023. Not only the general influence from macro factors, the domestic insurance market also suffers from "double impact" from inadequacies in consulting and sales activities, especially the insurance sales channel through banks.

There are currently 81 insurance businesses, including 31 non-life insurance businesses, 19 life insurance businesses, 2 reinsurance businesses and 29 insurance brokerage businesses; 1 branch of a foreign non-life insurance enterprise.

The total assets of insurance businesses were estimated at 913,308 billion VND, an increase of 11.12% over the same period last year. The amount of investment from insurance businesses in the economy was estimated at 762,580 billion VND, up 12.78% over the same period last year. Total equity was estimated at 190,201 billion VND, up 7.09% over the same period last year.

Total insurance premium revenue was estimated at 227,134 billion VND, down 8.02% over the same period last year. In particular, premium of the non-life insurance market increased by 2.87%, that of the life insurance market decreased by about 12.5% over the same period in 2022; Insurance benefit payments were estimated at about 86,376 billion VND, an increase of 31.14% over the same period last year.

According to the Department of Insurance Management and Supervision, Ministry of Finance, the highlight of 2023 was that the legal framework for insurance agency activities, especially the agency channel which is banks, was basically complete and strict.

Outlook for 2024

Representatives of the management agency expect that the insurance market in 2024 will regain positive growth momentum. In fact, many believe that recent positive movements are only the initial results.

Therefore, the insurance market still needs more time to change, towards increasing depth, increasing quality, and contributing more effectively to socio-economic development.

In the new context, the management agency will continue to focus on market development, information technology application, both improving the quality of management and supervision, and increasing the quality of insurance products and services.

At the same time, in parallel with further improving the quality of exams and granting insurance agent certificates, businesses are required to strengthen training and retraining of insurance agents to increase the quality of consulting and providing services to customers.

Source: theleader