According to preliminary estimates of the Vietnam Insurance Association, by the end of April 2020, the total number of new mining contracts of life insurance enterprises was 813,677 contracts, an increase of 12 percent over the same period last year. Previously, the new insurance premium reached over 10 trillion dong, increased by 7.69%.
Besides, the total number of life insurance policies in force at present was over 10.7 million contracts, an increase of about 22.9%. The total premium revenue of the life sector by the end of April 2020 reached 33.475 trillion dong, grew by 17%.
According to Ngo Trung Dung, deputy general Secretary of Vietnam Insurance Association, it was possible that the market’s fee revenue in the first five months of 2020 would continue to decrease a little further because the impact of Covid-19 epidemic had a certain lag. Still, compared to other economic sectors, the insurance industry had grown, although the growth rate was not as good as in previous years.
It was known that in the last four years to five years, the life insurance market had always developed at about 30 percent per year. However, since 2019, the market’s growth had begun to slow down.
That was also a rule of development, Dung said. Any market that increased forever must adjust. If Vietnam’s life insurance market declined to 20 percent per year, it might also be a reasonable growth rate.
By the end of 2019, according to the statistics of the Ministry of Finance, the life insurance market’s total revenue estimated at 129.12 trillion dong. In particular, insurance premium revenue estimated at 107.793 trillion dong, an increase of 25 percent compared to 2018. Income from investment activities was at 21.327 trillion dong. The number of valid contracts (main contract) estimated at 10.5 million contracts, 18 percent higher than the same period in 2018.
