Insurance market forecast to grow 15 percent in 2015

Insurance market forecast to grow 15 percent in 2015

The entire insurance market is expected to expand between 12 and 15 percent in 2015, according to the Ministry of Finance.

The ministry forecasted that the general or non-life insurance market will rise between 12 and 14 percent and the life insurance market will jump 20-22 percent.

A number of measures need to be taken in order to achieve those targets, the ministry said, one of which is to comprehensively develop the insurance market to meet demand.

Another measure is to increase the financial and business capacity of insurance companies to meet competitiveness and international integration.

The ministry also highlighted the need to restructure insurance companies to develop the market safely, effectively and sustainably.

In 2014, the market grew by 14.2 percent with revenue of 52.7 trillion VND (2.4 billion USD) from insurance fees. Of the figure, life insurance accounts for 27.4 trillion VND (1.3 billion USD) and the remaining is sourced from general insurance.

Total payment for damage claims in 2014 was 18.6 trillion (862 million USD), up 4.1 percent from 2013, in which life insurance companies paid 8.2 trillion (380 million USD) in compensation.

Last year also saw an increase in enterprise and community confidence in insurance services and its management agencies after the Ministry of Finance and insurance companies worked to resolve damage claims promptly.

Guidelines on the enforcement of the Insurance Business Law and relevant legal documents were issued and revised in 2014, helping create a favourable legal framework for the healthy and sustainable development of the market, fulfilling bilateral and multilateral commitments in international integration.

Insurance companies also tapped potential markets and developed new insurance products last year, such as voluntary retirement plans, aquaculture insurance, agriculture insurance and export credit insurance. More than 300,000 farmer households have joined agriculture insurance during the pilot three-year period.-VNA

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