ANTD.VN - Although the life insurance market still faces many difficulties, its revenue decline has narrowed compared to the first months of the year.
According to information from the Ministry of Finance, total insurance premium revenue in the first 11 months of the year is estimated at VND204,109 trillion, up 6.63% over the same period last year.
In particular, the non-life insurance sector maintained a positive growth rate with estimated revenue reaching VND71,905 trillion, up 13.02%. In contrast, life insurance still faced difficulties with revenue decreasing by about 5.5% compared to the same period, estimated at VND132,204 trillion.
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The life insurance market has become less difficult. |
Although the cumulative 11 months still witnessed a decline, this decrease has narrowed compared to previous months, indicating that new life insurance revenue has somewhat recovered. Previously, data for the first 6 months of the year released by the Ministry of Finance showed that premium revenue of this insurance sector decreased by 9.8% compared to the same period.
According to data from the Vietnam Insurance Association, in the third quarter of 2024, new revenue from life insurance reached more than VND 5,934 billion, a slight increase compared to the same period in 2023 (VND 5,874 billion). This is the first time that insurance premium revenue has returned to positive growth after 5 consecutive quarters of negative growth.
Regarding insurance benefit payments, the Ministry of Finance said it is estimated to reach VND 86,368 trillion, an increase of 17.13% over the same period in 2023; the total amount of investment back into the economy is estimated to reach VND 838,319 trillion, an increase of 12.58%.
Total insurance market assets are estimated at VND986,586 trillion, up 9.7%; total insurance reserves are VND664,396 trillion, up 13.46% over the same period last year.
In fact, after a period of rapid growth, the life insurance industry has faced many difficulties in the past two years. After the scandal of banks forcing customers to buy insurance, the management agency has issued many regulations to tighten this activity.
In particular, the Law on Insurance Business (effective from early 2023) and Circular 67 provide stricter policies, focusing on protecting the rights of insurance participants. Banks are prohibited from selling investment-linked insurance 60 days before and after disbursement. At the same time, consultants must record audio and video of the consultation process...
The State Bank is also drafting Decree 88 on administrative sanctions for violations in the monetary and banking sector. Accordingly, banks that attach non-compulsory insurance products to the provision of banking products and services may be fined from VND400-500 million.
Along with that, inspection and examination activities are carried out synchronously. The State Bank and the Ministry of Finance have both announced hotlines, ready to receive feedback and recommendations from people about being "forced" by banks to buy insurance.
Currently, the insurance market has 85 businesses, including 31 non-life insurance businesses, 19 life insurance businesses, 02 reinsurance businesses, 32 insurance brokerage businesses; and 01 branch of a foreign non-life insurance business.
Source: https://www.anninhthudo.vn/bao-hiem-nhan-tho-da-bot-kho-doanh-thu-dan-phuc-hoi-post597465.antd
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