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Health, vehicles to be main growth drivers for Vietnam's non-life insurers in 2023

Tan KW
Publish date: Sun, 26 Mar 2023, 08:30 PM
Tan KW
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HANOI, March 26 : The health and vehicle insurance sectors will continue to be primary growth drivers for non-life insurance in Vietnam in 2023, thanks partly to improved awareness of people and organizations, according to local experts.

The development of the non-life insurance market is driven by the country's ageing population structure and rising middle class, local newspaper Vietnam News reported on Friday.

Despite high inflation, rising prices of goods and medical expenses, and increasing costs due to the pandemic's consequences on people's health, the compensation rate is forecast to keep stable under competitive pressure, thereby attracting people to participate, it said, citing local analysts.

For vehicle insurance, the potential growth is high as the trend of traveling by car is increasing due to the rising demand from the middle class and the transport ministry's direction to limit motorbikes, the newspaper said.

Non-life insurance and health insurance comprised the largest proportion of the insurance industry's premium revenue in 2022, accounting for approximately 33.2 percent, with revenue of 22.41 trillion Vietnamese dong (US$949.6 million), according to the Vietnam Insurance Association.

Vehicle insurance generated a revenue of 18.1 trillion Vietnamese dong (766.9 million U.S. dollars), comprising 26.8 percent of the overall market revenue, it said.

Vietnam's insurance industry is expected to keep growing this year, buoyed by the country's 6.5 per cent GDP growth forecast.

 - Xinhua

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