Insurers predict 10% growth

The insurance industry will see modest growth in earnings of 10 per cent next year despite a third consecutive year of slowed economic growth, predicts Association of Viet Nam Insurers (AVI) general secretary Phung Dac Loc.

Non-life premiums next year were expected to grow by 13-14 per cent while life premiums would increase 11-12 per cent, Loc told the publication Dau tu Chung khoan (Securities Investment).

To maintain profitability, non-life insurers would emphasise personal asset insurance, health insurance, financial insurance and agricultural insurance, he said. Life insurers would continue to strive to attract new customers and retain existing contracts while waiting out the sustained downturn in the real estate and securities markets and the decline in personal incomes.

Life insurers were also expected to increase their focus on bancassurance (a term used to identify a range of insurance products sold through banking networks). They also were also likely to continue building their base of insurance agents as a key competitive strategy in the coming years.

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