The Vietnamese Ministry of Finance (MoF) intends to develop the nation’s insurance industry this year by putting a variety of strategies into place to realise the objective of a secure and long-lasting market.
The Ministry also stated that it anticipates the average growth rates of total assets, total investments, and total income to climb by roughly 15% in 2023 in order to observe market expansion and the enhancement of insurance services.
In addition to protecting social security, these solutions also seek to satisfy the various insurance requirements of businesses and individuals.
The Ministry will also continue to supervise and oversee the market through remote monitoring and on-site inspection, as well as award permits to qualified investors to participate in the market.
The MoF emphasised that in order to meet bilateral and multilateral commitments on international integration, institutional improvement of Vietnam’s insurance market would continue to be prioritised in 2023. This would be done by gradually creating a favourable legal corridor for the market’s healthy and sustainable development.
In addition, it will develop and enhance an IT system for managing and overseeing the market as well as carrying out enterprise inspection and examination in line with the approved plan.
There are currently 79 insurance companies operating in Vietnam, 31 of which offer non-life insurance products, one of which has an overseas branch.
Additionally, there are 26 insurance brokerage firms, 2 reinsurance firms, and 19 life insurance firms in the nation.
According to estimates, insurance companies have assets worth VN811.3 trillion ($34.4 billion), an increase of 14.5% year over year. Estimated total equity is VN 162.8 trillion, up 3.83%. Estimated total insurance premium income is VN251.3 trillion, up 15.09%. The Ministry added that from the organisation and deployment of inspection and examination delegations to the design of inspection and examination plans, the inspection and examination of companies must be conducted in line with the order and processes.
Last but not least, the MoF highlighted that management and supervisory functions had been improved and standardised in accordance with the guidelines set forth by the International Association of Insurance Supervisors.
- The Ministry of Finance wants to expand the insurance industry in Vietnam
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