Non-life insurance companies invested more than 43 trillion dong in the economy in 2018, up by 11 percent compared to 2017.
According to the Ministry of Finance (MOF), by the end of 2018, the whole market had 30 non-life insurance companies, one branch of foreign non-life insurance company, and two reinsurance companies.
Some basic indicators of the non-life insurance market in 2018 continued to see stable growth rate. Specifically, the total assets were estimated at 81.806 trillion dong, up by 8.5 percent compared to 2017 and the total insurance premium revenue was estimated at 45.694 trillion dong, up by 9.9 percent compared to 2017. The total compensation of non-life insurance premium was estimated at 19.476 trillion dong, up by 21.19 percent compared to the same period of 2017.
At the same time, non-life insurance companies continued to expand their business network. In 2018, non-life insurers opened more than 19 branches, one transaction office and one representative office, raising the total number of branches/member companies to 633 units with operations in 63 provinces and cities nationwide.
In general, the newly established branches/member companies have made contribution to the revenue growth of the entire market However, two inefficient branches were narrowed down to ensure the business efficiency of insurance business.
Regarding the corporate governance, the MOF mentioned that in 2018, to strengthen corporate governance, non-life insurance companies proposed the MOF for approval of the change of eight titles of general director and Chair of the Board of directors, 12 titles of actuarywhich are important management and executive titles.
In addition, non-life insurance companies also paid attention to management and executive positions requiring specialised skills in insurance business such as the Head of Supervisory Board, Chief Accountant, Brand manager and Head of the Business Department through training and promotion activities.
In terms of financial capacity, in 2018, four non-life insurance companies submitted applications for raising charter capital and were approved by the MOF with a total increase of 695 billion dong. One reinsurance company raised charter capital by 60 billion dong.
As estimated, the total equity of non-life insurers was 26.280 trillion dong, up by 4.8 percent over the same period of 2017. Their total claim reserves were estimated to reach 21.642 trillion dong, up by 10.1 percent over the same period of 2017.
