Although non-life insurance market has get back to double-digit growth after relatively quiet 2013 with improvement in terms of financial strength, corporate governance, customer service quality of member companies, it is still messy with many problems to be solved in order to develop this market sustainably.

Get back to double-digit growth

According to Insurance Supervisory Authority (Ministry of Finance), in 2014, non-life premium volume is estimated at VND25,250 billion. This sector has regained double-digit growth rate, 10.5%, after a relatively quiet 2013. In 2013, the non-life insurance market grew by only 7%, sharp decline in comparison with previous years (2010: 24.5%; 2011: 17.5%; 2012: 10.5%).

The decline of growth rate of non-life sector in 2013 was analyzed by many analysts, that 2013 was the peak year of economic difficulties in recent years. Strong decline of demand for investment, asset purchases has affected non-life insurance. In 2014, the economy has shown clear signs of recovery. The stock market and real estate have improved; many enterprises have started to restore operations after a long time of clustering. According to Minister of Planning and Investment Ministry, Mr. Bui Quang Vinh, GDP growth in 2014 exceeded the target by 5.8%. Along with the efficiency of the process of restructuring the insurance market, insurance enterprises have improved their financial strength, corporate governance, product quality and business performance.

The insurance sector not only had higher growth last year but also recorded some positive changes. Unhealthy competition in risk category 3 and 4 of non-life market has decreased strongly in comparison with 2013 when reinsurers applied minimum conditions. Loss ratio also decreased. Premium volume growth rate of non-life sector grew by 10.5%, claim payments only increased by 4.2%.