Vietnam: Insurers to lift their game to meet expectations

The Vietnamese insurance industry expects to collect total premiums of VND43.7 trillion (US$2.1 billion) this year, a 6.5% rise from last year.

To meet these targets, several insurers are focusing on becoming more professional and improving the quality of their services, reports the Vietnam News Agency.

They will focus on restructuring the market as well as their businesses so as to maintain stability and sustainable development, says the Ministry of Finance’s Insurance Supervisory Authority.

Mr Nguyen Truong Giang, General Director of the Post and Telecommunications Insurance Joint Stock Company, says the company would become more competitive by improving the quality of its key products.

Mr Le Van Thanh, General Director of Bao Minh Insurance Joint Stock Company, says his company plans to restructure its organisation not only at the head office level, but also in subsidiaries as well. In addition, the company wants to develop its distribution network, restructure its range of products and investment structure as well as improve the quality of services.

Another reason for insurers to improve operations is the slower growth the industry experienced in the first half of this year because of economic difficulties. Total premiums grew by 6.86% from January to June compared to 17.8% during the corresponding half-year in 2012 and 22% in 2011.

Statistics from the ISA show non-life premiums in the first six months of 2013 stood at VND11.8 trillion, an increase of only 2.2% y-o-y. Life premiums reached VND9.1 trillion, reflecting a growth rate of 13%, in the first half.


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