Vietnamese Insurers Eye Strong Year

Hopes are high for Vietnamese insurers to post yet another stellar performance this year following a strong showing in 2015.

The industry’s premium income last year hiked 21.4 percent to Vnd68 trillion (US$3 billion) and total assets grew 21.7 percent to Vnd201 trillion, according to data from the Finance Ministry’s Insurance Supervisory Authority.

Non-life segment, which rose 14 percent on 2014, was the top sales generator, accounting for more than 45 percent of total sales.

Life segment stretched at a rate of 29.5 percent, a record-high in a decade.

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These rosy numbers are fueling optimism amongst Vietnam’s insurers but the Viet Nam Report (VNR), in a survey, has warned that insurance firms could face losses if they will not be transparent about customers’ rights, benefits and duties in joining insurance contracts to avoid losses.

VNR also revealed in its study that most customers would prefer insurers with strong financial capacity, good business results, a high and stable premium and large market share.

Vietnam Targets 90% Insurance Coverage

Vietnam is expected to boost the implementation of its health insurance program with officials taking action on the Prime Minister’s order that at least 90 percent of the population should have been covered by 2020.

Deputy Prime Minister Vu Durc Dam, at a conference in Hanoi, asked the Viet Nam Social Insurance and Ministry of Health to step up to the challenge.

Dam, who shared that the previous target was just 80 percent coverage, emphasized the huge role of a solid insurance scheme in laying the groundwork for a strong social welfare system that is needed in building a progressive nation.

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To hit the target, Dam said Vietnam Social Insurance must allow its local health insurance units to work closely with local people’s councils and committees in implementing the program.

Already, the government, Vietnam Social Insurance and Ministry of Health have agreed to provide a management service package that incorporates the use of basic information technology in healthcare facilities nationwide.

Officials believe this will improve connectivity in healthcare activities. –