“Opportune environment” for growth of insurance enterprises

	Strengthen supervision to boost the insurance market
	Banks reduce revenue from insurance services
	Minister of Finance: Fairness and transparency for the insurance market

Vietnamese insurance enterprises have attracted investment and capital contribution from foreign investors. Photo: BSH

Currently, the insurance market has 82 insurance enterprises with 31 non-life insurance ones, 1 branch of a foreign non-life insurance one, 19 life insurance ones, 2 reinsurance ones and 29 insurance brokerage ones.

In a recent sharing, Mr. Nguyen Anh Tuan, Vice President of the Insurance Association of Vietnam (IAV), said that in spite of many challenges, insurance enterprises were aware and wanted to increase customer trust. Representatives of IAV leaders emphasized that Vietnamese insurance enterprises had made efforts to approach international standards and practices on insurance business, improving the safety and sustainability of the market.

In fact, insurance enterprises are trying to take advantage of many opportunities to accelerate development. In announcement of their business plans for the whole year 2024, many insurance enterprises have given high growth numbers.

Affirming that the insurance market has many “opportune environment” factors, Mr. Uong Dong Hung, Chairman of the Board of Directors of Military Insurance Joint Stock Corporation (MIC) pledged that the company would definitely achieve profits. at least exceeding or equal to the proposed plan. Accordingly, MIC planned to increase profit by 25%, insurance revenue to increase by 33%... Through the first quarter of 2024, MIC has recorded original insurance revenue of over VND 1,300 billion, an increase of 7% compared to with the same period last year; Pre-tax profit reached VND 96.3 billion, an increase of 12.1% over the same period in 2023.

In 2024, BIDV Insurance Joint Stock Corporation (BIC) sets a target of total insurance premium revenue (according to the parent company's individual report) expected to reach VND 5,570 billion and consolidated pre-tax profit expected to reach VND 600 billion, an increase of 14.2% and 4.5% respectively compared to implementation in 2023. Mr. Tran Hoai An, General Director of BIC said that the Company would implement solutions to improve the quality of compensation settlement, perfecting information technology systems, researching and developing new products in accordance with digital technology trends...

Or recently, Saigon - Hanoi Insurance Joint Stock Corporation (BSH) has had an important milestone when welcoming a foreign strategic shareholder, DB Insurance (DBI). DB Insurance becomes a foreign strategic shareholder when accounting for 75% of charter capital. DB Insurance is known as a global insurance company, belonging to DB Group (Korea) with a network of operations in many countries such as the United States, China and Vietnam.

According to Mr. Do Quang Vinh, Chairman of the Board of Directors of BSH, DB Insurance's strong financial potential, methodical business strategy and global operating network would become leverage to help BSH expand its market, promote technology development capacity, improve service quality.

For Petrolimex Insurance Joint Stock Corporation (PJICO), the period 2024-2029 is considered to be more promising and sustainable when PJICO aims to maintain an average growth of insurance revenue of at least 3-5% per year, maintain an average pre-tax profit growth of 3% per year... The company also plans to seek and expand business scale in key areas to take advantage of market expansion opportunities.

In the life insurance business sector, many bright spots have also appeared. Not long ago, the Ministry of Finance approved Sun Life Vietnam Life Insurance Company Limited (Sun Life Vietnam) to increase its charter capital from VND 16,480 billion to VND 17,944 billion. This helps Sun Life Vietnam become one of the three insurance companies with the largest charter capital operating in Vietnam. In addition, enterprises are also transforming, offering many insurance products at reasonable costs, ensuring customer benefits...

In early 2023, the Prime Minister approved the insurance market development strategy until 2030. In which, by 2025, the insurance market scale is planned to reach 3-3.3% of GDP, equivalent to US$ 15-17 billion. Average growth in the period 2026-2030 is 10%/year, by 2030 the insurance market size will reach 3.3-3.5% of GDP. According to enterprises and experts, these goals show that the Government always attaches importance to the development of the insurance industry in contributing to overall economic growth.

For a long time, the development of the insurance market has always had contributions from the management agency, the Ministry of Finance, in carrying out inspection and supervision to improve the health of businesses and insurance agents. ... The Ministry of Finance said that the unit would continue to improve policy mechanisms related to insurance products, publicize and transparent information about insurance products and enterprises so that people could easily access information. On the other hand, the regulatory agency continued to request a review, enhance inspection and supervision of the activities of insurance enterprises and strictly handle insurance agents which were detected violation about legal regulations.