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Thursday,  Jan 18,2018,16:46 (GMT+7)

Insurance growth put at 21%

The Saigon Times Daily
Thursday,  Dec 28,2017,15:44 (GMT+7)
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Insurance growth put at 21%

The Saigon Times Daily

HCMC – The insurance industry this year is projected to grow by 21.2%, marking the fourth year in a row the sector has recorded annual growth of higher than 20%, Dau Tu Chung Khoan newspaper reported.

According to the Ministry of Finance’s Insurance Supervisory Authority at a recent review meeting, the insurance sector targets to generate VND129.25 trillion in premiums next year, up 22.38% against this year.

Besides, total assets and investments in the economy are targeted at VND370.82 trillion and VND305.5 trillion respectively.

The 2018 growth target is based on positive results this year, said a representative of the authority. In particular, insurance premiums in the entire market are estimated at VND105.61 trillion this year, which results in not only a year-on-year rise of 21.2% but also a figure higher than the expected VND102.38 trillion.

Though official statistics at each insurance company are not available yet, the estimated results are positive.
Vietnam National Aviation Insurance Corporation (VNI) said the company together with its member units like VNI Thang Long and VNI Long An has achieved the targets set for the whole year. Its total revenue alone has grown by over 36%.

At Posts-Telecommunications Insurance Corporation (PTI), this year’s estimated pre-tax profit is VND180.6 billion, up 24% against the year’s plan and 39% against last year, though insurance premiums are VND3.33 trillion, below the targeted VND3.46 trillion. Estimated investments are some VND154.7 billion, 18% higher than planned.

Next year, PTI looks to achieve VND3.6 trillion in insurance premiums with an 8% rise against this year, but estimates a decline of 24% in profit with VND110.8 billion.

Deputy Minister of Finance Tran Xuan Ha told the meeting that with the economy forecast to remain stable, the insurance sector should keep its growth above 20% next year. He also noted the importance of restructuring and enhancing inspection activities to ensure the market’s healthy development.

According to experts, next year’s growth target of over 20% is attainable as the operations and distribution channels of insurance companies are expanding, especially when sales of insurance via banks are forecast to soar.

However, the growth rate of next year will still be affected by the limited number of quality products, widespread unhealthy competition and a lack of data in the industry, the newspaper quoted an expert as saying.

Many agreed the ministry needs to specify profit targets of the insurance industry in the coming year, enabling clients to more accurately measure a certain insurer. In reality, some insurers report high premium growth but are loss-making.

The Insurance Supervisory Authority said it will strengthen management and supervision of the insurance market, including regular assessments of insurance companies.

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