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Jan 04, 2020 / 15:38

Vietnam insurance market grows 20.5% in 2019

This is the sixth year in a row that the Vietnam insurance market has achieved a premium growth rate of over 20%.

Total premiums collected by insurance companies in Vietnam in 2019 reached VND160.18 trillion (US$6.93 billion), up 20.5% year-on-year, marking the sixth year in a row that the Vietnam insurance market has achieved a premium growth rate of over 20%, according to the Insurance Supervisory Authority (ISA).

 Illustrative photo.

Upon breaking down, life insurance premiums came at VND107.79 trillion (US$4.66 billion), and non-life insurance premiums reached VND52.38 trillion (US$2.26 billion)

In 2019, total assets of insurance companies operating in Vietnam were estimated at VND454.37 trillion (US$19.66 billion), up 15.03% year-on-year. Of the total, assets of non-life insurers stood at VND89.44 trillion (US$3.87 billion) and life insurers of VND364.93 trillion (US$15.79 billion).

Meanwhile, insurance companies have reinvested VND376.55 trillion (US$16.29 billion) into the economy, up 16.36% year-on-year, while equity of insurers amounted to VND89.34 trillion (US$3.86 billion), up 9.34% year-on-year. 

During the period, companies paid VND44 trillion (US$1.9 billion) in insurance benefits to customers. 

In 2018, total market premium revenue is estimated at VND133.65 trillion (US$5.75 billion), up 24% year-on-year.

The ISA forecast total assets of insurance companies in Vietnam to reach VND514.79 trillion (US$22.27 billion) in 2020, up 13.3% year-on-year, and VND433.06 trillion (US$18.74 billion) would be invested into the economy, up 15.01%.

Additionally, total premiums collected by insurance companies in Vietnam in 2020 is set to hit VND188.73 trillion (US$8.16 billion), up 18.42% year-on-year.

The high growth of the sector was mainly attributed to personal insurance, including life insurance, healthcare insurance and motor vehicle insurance, stated Viet Dragon Securities Corporation (VDSC). 

High economic growth, increasing income per capita, aging population, increasing hospital fees and low ownership of vehicles would be the main factors to support the demand for personal insurance in the future, added VDSC.

According to the Vietnam Insurance Association, up to 18 companies are active in Vietnam's life insurance market. Except for Bao Viet Life Insurance, which is a Vietnamese business, the remaining ones are joint ventures and wholly foreign-owned insurers, including the presence of the world's leading finance and insurance groups. 

Overall, Vietnam has 66 insurance companies, of which 30 are non-life insurers, 18 life insurers, two re-insurers, 16 insurance brokers and one representative office of foreign non-life insurer.