(TBTCO) - Although there are still many challenges in 2023, the Vietnamese insurance market will still maintain growth in many indicators, of which the highlight is the work of perfecting the legal framework for the market. Along with the macro fundamentals, potential, and advantages of Vietnam, the new strategic orientation and legal framework create great expectations for the Vietnamese insurance market to create a "push" in terms of scale., quality development in 2024 and the following years.
Change in a more positive direction
According to data from the Department of Insurance Management and Supervision (Ministry of Finance), at the end of 2023, the insurance market currently has 81 insurance businesses (including 31 insurance enterprises). non-life insurance companies, 19 life insurance companies, 2 reinsurance businesses and 29 insurance brokerage businesses) and 1 branch of a foreign non-life insurance company.
By the end of 2023, total assets of insurance enterprises are estimated to reach 913,308 billion VND, an increase of 11.12% over the same period last year. Insurance businesses investing back into the economy is estimated at 762,580 billion VND, up 12.78% over the same period last year. Total insurance reserves are estimated at 601,448 billion VND, up 14.16% over the same period last year.
Also by the end of the year, the total equity capital of insurance enterprises was estimated to reach 190,201 billion VND, an increase of 7.09% over the same period last year. Total insurance premium revenue is estimated at 227,134 billion VND, down 8.02% over the same period last year. Of which, premium revenue from the non-life insurance sector is estimated at 71,149 billion VND, up 2.87% over the same period last year; The life insurance sector is estimated to reach VND 155,985 billion, down 12.5% over the same period last year.
Also in 2023, insurance businesses will increase the value of insurance benefit payments to customers, estimated to reach 86,376 billion VND, an increase of 31.14% over the same period last year, of which non-life insurance businesses are estimated to reach 23,814 billion VND. , life insurance businesses are estimated to reach 62,562 billion VND.
Talking to reporters from TBTCVN, a representative of the Department of Insurance Management and Supervision shared that the Vietnamese insurance market has just had an "unforgettable" year for both management agencies, insurance businesses, as well as those who do profession. It can be said that 2023 is a year when Vietnam's insurance market is affected by both objective and internal factors and the market has to "overcome double challenges".
“In 2023, the global and domestic macro economy still faces many difficulties and challenges. These unfavorable factors have affected many industries and fields, and insurance is no exception. Along with that, we clearly see that the internal problems of the market have been revealed, "quantity" has accumulated and requires strong changes to transform in "quality" - the Department's leader shared.
“The pressure and challenges are huge, but with the right policies of the Government to support, remove difficulties, restore production, and develop the economy; the drastic direction of the Ministry of Finance; the coordinated support of many ministries, branches and agencies, along with the determination and efforts of state management agencies, the Vietnam Insurance Association, and insurance enterprises; the companionship of many news and press agencies; and especially the sympathy and sharing of customers... Vietnam's insurance market has gradually changed in a more positive direction" - assessed the representative of the management agency.
Focus on transparency, safety, and efficiency
Information from the Department of Insurance Management and Supervision said that in 2024, the management agency will continue to focus on management and supervision with the goal of ensuring a transparent, safe, and effective insurance market. results to suit the country's socio-economic development conditions and orientations and international standards; At the same time, it meets the basic insurance needs of all economic sectors and population classes, contributing to stabilizing the economy and ensuring social security.
Accordingly, although the work of completing the new legal framework under the revised Insurance Business Law has basically been completed, however, in the new context, the management agency will continue to review and submit to the competent authorities. The right to review ensures that legal policies must be consistent with market development practices.
Along with that, in 2024, the management agency will continue to focus on market development and improving 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, insurance enterprises are required to strengthen training and retraining of insurance agents to increase the quality of consulting and providing service for customers.
Also in the new year, to further strengthen order, discipline, and market discipline, management agencies will continue to strengthen remote monitoring, on-site inspections and checks. Accordingly, the department will strengthen periodic assessments of insurance businesses, promptly detect violations and report to the Ministry of Finance for a solution. At the same time, along with implementing the approved inspection plan for insurance enterprises, the department will carry out specialized inspections according to the plan approved by the leaders of the Ministry of Finance. Through inspection and inspection results, violations will be strictly handled according to the provisions of law.
Besides, along with strengthening international cooperation, in 2024, propaganda work will continue to be focused on by the Department of Supervision and Insurance Management; At the same time, we will request the Insurance Association and businesses to be more proactive in information and propaganda work.
Expect positive growth in insurance premium revenue again
According to information from the Department of Insurance Management and Supervision, in 2024, the total assets of insurance enterprises are expected to reach VND 1,004,421 billion, an increase of 9.97% over the same period last year. Insurance businesses investing back into the economy is estimated at 850,264 billion VND, an increase of 11.51% over the same period last year.
Total equity is estimated at 200,736 billion VND, an increase of 5.54% over the same period last year. Total insurance reserves are estimated at 693,127 billion VND, up 15.25% over the same period last year.
Also in 2024, the total insurance premium revenue of insurance companies is expected to reach 243,472 billion VND, an increase of 7.19% billion VND (up 12.0% over the same period last year), the life sector is estimated to reach 163,785 billion VND. billion VND (up 5.0% over the same period last year). Insurance businesses paying insurance benefits: estimated at 110,043 billion VND, up 27.4% over the same period last year, of which non-life insurance businesses are estimated at 25,584 billion VND, life insurance businesses are estimated at 84,459 billion VND.
Source: https://thoibaotaichinhvietnam.vn/ky-vong-su-chuyen-bien-tich-cuc-cua-thi-truong-bao-hiem-nam-2024-142753.html