Vietnam’s Ministry of Finance (MoF) is planning to develop the country’s insurance market by implementing a number of solutions to achieve the goal of a safe and sustainable market this year.
These solutions also aim to meet the diverse insurance needs of organisations and individuals, as well as ensuring social security.
The Ministry also noted that, in order to see market development and the improvement of insurance services, it expects the average growth rate of total assets, total investment, and total revenue to increase by about 15% in 2023.
Additionally, the Ministry will also grant licences to qualified investors to participate in the market; continue to manage and monitor the market by means of remote monitoring and on-site inspection.
At the same time, it will build and perfect an information technology system serving market management and supervision, as well as carrying out inspection and examination of enterprises in accordance with the approved plan.
The MoF highlighted that institutional improvement of Vietnam’s insurance market in 2023 would continue to be focused on to gradually create a favourable legal corridor for the healthy and sustainable development of the market and meet bilateral, and multilateral commitments on international integration.
Currently, the Vietnamese insurance market has 79 insurance businesses, 31 of them provide non-life products – and one branch of non-life insurance enterprises is abroad.
The country also has 19 life insurance businesses, two reinsurance businesses, and 26 insurance brokerage businesses.
The total assets of insurance businesses are estimated at VNĐ811.3 trillion (US$34.4 billion), a y-o-y growth of 14.5%. Total equity is estimated at VNĐ162.8 trillion, up 3.83%. Total insurance premium revenue is estimated at VNĐ251.3 trillion, up 15.09%.
Additionally, the inspection and examination of enterprises are to be carried out in accordance with the order and procedures from the formulation of inspection and examination plans to the organisation and deployment of inspection and examination delegations, the Ministry explained.
Finally, the MoF also noted that management and supervision activities were enhanced and standardised in accordance with the standards issued by the International Association of Insurance Supervisors.