Only 8% of the population currently has a life insurance plan.
Vietnam is targeting to nearly expand life insurance coverage to 11% by 2020 and 15% by 2025 from the current 8%, according to local media reports.
The scheme aims to restructure the insurance market to allow for greater information transparency and ensure modernised distribution channels. The government is also setting up an information system to classify information that goes through the market to better manage and control risk.
The government also aims to grow the insurance market’s total assets, investment capital, operational reserves, owners’ capital to 20% by 2020 which will taper off to 15% between 2021-2025.
Total premiums collected by insurance companies in Vietnam rose 24% YoY to $5.75b (VND133t) in 2018, according to the Insurance Association of Vietnam (IAV). In 2018, total assets of insurance companies operating in Vietnam saw double-digit growth of 21% to $16.60b (VND384t).
Overall, Vietnam has 63 insurance companies, of which 30 are non-life insurers, 18 life insurers, two re-insurers and 13 insurance brokers.
Do you know more about this story? Contact us anonymously through this link.