In 2012, insurance companies had to face with innumerable difficulties, and tried their best to achieve business targets. Leader of Insurance Supervisory Authority said that 2013 will be even harder.  

However, according to Mr. Trinh Quang Tuyen, Chairman of Vietnam National Reinsurance Corporation (VINARE) cum Chairman of Association of Vietnamese Insurers (AVI), with social responsibility, each insurance company has been looking for solutions to overcome challenges, seize new opportunities, overcome limitations and shortcomings of the past years and invest safely and effectively to provide better business results than 2011. 

In 2012, total market premium volume was estimated at VND 40,591 billion, increasing by 11 % in comparison with 2011; in which non-life premium volume was estimated at VND 22,675 billion, increasing by 10.2 % in comparison with 2011 and life premium volume was estimated at 17,916 billion, increasing by 12 %. The insurance industry has invested nearly 91,000 billion in the national economy, contributing to the country’s economic development, ensuring social security. Concurrently, insurance companies restructure to ensure its solvency margin, safe and effective investment portfolio; handle doubtful debts (including overdue premium) and restructure owner’s equity, decreasing capital contribution of group, state-owned corporation in insurance companies; choose strategic partners to contribute capital.

Mr. Trinh Thanh Hoan, Head of Insurance Supervisory Authority (MOF) said that, basically, insurance companies frequently implement restructuring along with management, supervision activities of state authorities. However, in order to implement this activity formally and adequately, in 2013, it is necessary to study and promulgate Circular regulating comprehensive evaluation criteria for operational risk, financial soundness and corporate governance of insurance companies. In addition, we need to assess, classify enterprises and apply restructuring measures for each group of enterprises.   

In the field of life insurance, Mr. Takashi Fujii, Chairman cum CEO of Dai-ichi Life Vietnam emphasizes: “With medium and long term business’s characteristics, life insurance companies have to have vision and development strategy for the next 10-20 years, do not let opportunities covered by difficulties. In 2013, Vietnam’s economy is certainly more difficult, but I believe that life insurance still remains competitive as a safe investment channel”.

According to AVI, despite many difficulties, in 2013 the insurance industry still set a double-digit growth target: non-life premium volume increases by 10-12 %, life premium volume increases by 12-14 %.

Mr. Trinh Thanh Hoan said that to unleash the potential of the insurance sector in the coming years, the Ministry of Finance has recently signed Decision No. 2330/QD-BTC on the implementation of measures for insurance market development in the period of 2011-2015. Accordingly, 2013 is the first year of implementation of 6 key group of measures set out in Decision No. 2330/QD-BTC which are: to improve the legal system of insurance business; to enhance system security; performance and competitiveness of insurance companies; to encourage and support the development of enterprises and diversification of insurance products; to diversify and specialize insurance distribution channel; to enhance the effectiveness of state management of insurance business and to boost international cooperation and integration in the insurance sector.

 (Vietnam Investment Review)