Promoting sustainable growth of insurance market

Significant revenue

In recent years, the Vietnamese insurance market has grown in terms of number of enterprises and financial capacity, increasing savings accumulation for the economy. It has become a medium- and long-term capital mobilization channel for the economy, helping promote macroeconomic stability and curb inflation.

The cross-selling of insurance products at banks has been rectified, preventing banks from pressuring customers to buy insurance when taking out loans

According to the Ministry of Finance (MoF)’s Insurance Supervisory Authority, insurance companies reinvested approximately VND821.241 trillion back in the economy in the first nine months of 2024, a year-on-year increase of 9.9 percent. Of the sum, an estimated VND83.576 trillion came from non-life insurance companies, and around VND737.665 trillion from life insurance companies. The total insurance reserves reached an estimated VND652.239 trillion, a year-on-year increase of 12.45 percent, with VND33.428 trillion held by non-life insurance companies, and VND618.811 trillion by life insurance companies. Total equity capital was estimated at VND202.803 trillion, a year-on-year increase of 6.88 percent, with non-life insurance companies accounting for VND41.682 trillion, and life insurance companies VND161.121 trillion.

The total amount of insurance premiums collected in the first nine months of 2024 was estimated at VND165.518 trillion, a 0.41 percent decrease compared to the same period last year. Of this, non-life insurance premiums accounted for VND58.541 trillion, up 12.79 percent, and life insurance premiums VND106.977 trillion, down 6.4 percent.

Insurance benefit payouts in the first nine months of 2024 were estimated at VND64.07 trillion, a year-on-year increase of 16.07 percent. The sum included VND17.621 trillion of non-life insurance payouts and VND46.449 trillion of life insurance payouts.

Creating favorable framework

In recent years, various mechanisms and policies have been put in place to promote sustainable development of the insurance market.

The Law on Insurance Business was passed at the third session of the 15th National Assembly and came into effect on January 1, 2023. The MoF has taken the lead in drafting and submitting to the Government three decrees that detail the Law on Insurance Business. These include Decree 46/2023/ND-CP dated July 1, 2023 detailing the implementation of several provisions of the Law on Insurance Business, Decree 21/2023/ND-CP dated May 5, 2023 on micro-insurance, and Decree 67/2023/ND-CP on mandatory insurance for motor vehicle owners’ civil liability and mandatory fire insurance in construction activities. The ministry has also issued one circular to regulate the law.

The Law on Insurance Business has helped improve the quality of insurance services and products, meeting diverse needs of individuals and organizations. At the same time, it allows insurance companies to be more proactive in designing, building, and deploying insurance products.

The MoF will continue to improve the legal framework for insurance business operations to ensure it aligns with the Party’s guidelines, state policies and laws, and enhances transparency, creating favorable conditions for both insurers and policyholders.

Additionally, the MoF will strengthen inspections and supervision with a focus on risk management-based insurance regulation. It will also exchange information and coordinate with relevant agencies to diversify insurance products, introduce new business models, and encourage research and development of new insurance products, including those integrating medical and healthcare services for the insured./.