Vietnam’s insurance sector posted one of the highest growth rates in a decade as total investment capital from the sector to the national economy increased sharply by 500 percent in 2015-2016.
Records from the Ministry of Finance’s Insurance Department show that the total investment capital from the insurance industry in that period increased from Vnd30.7 trillion (US$1.4 billion) in 2006 to Vnd150 trillion in recent years.
Insurance penetration into the national economy was at 1.39 percent in 2006 and the figure has been rising steadily over the years. Last year, penetration rate was 1.7 percent.
With more Vietnamese nearly approaching the “point of inflexion” at US$3,000, experts believe there will be more demand for insurance products which will in turn propel rapid growth in the sector.
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The year 2015 alone was a banner year for Vietnamese players with total insurance premiums revenue at Vnd68.7 trillion in that year, representing an increase of 30.39 percent, the sharpest ever recorded in the last 10 years.
Both life and non-life sales are driving growth in insurance premiums. – BusinessNewsAsia.com