HANOI: Vietnam’s insurance premium revenues grew again in the third quarter of 2024 (3Q24) after five consecutive quarters of decline due to a crisis of confidence.

Newly released data from the General Statistics Office showed the total revenue from insurance premiums in 3Q24 was estimated at 56.4 trillion dong or about US$2.3bil, an increase of 6.9% over the same period in 2023.

This was the first quarter since 2Q23 that insurance premium revenue growth recorded positive results.

Despite the recovery, revenues in 3Q24 were still lower than in 1Q23, before the crisis of confidence in the insurance market began and the regulatory authorities took action to steady the sector.

For about 10 consecutive years before 2023, the insurance sector had recorded double-digit growth in premium revenues.

However, the insurance sector fell starting last year, after clients complained of vague provisions in life insurance contracts that were said favour the insurance companies rather than clients.

In addition, the bancassurance segment also faced criticism, as clients were reportedly forced to buy insurance packages as a condition of being able to take out bank loans.

In the first nine months of 2024, total insurance premium revenues reached 165.5 trillion dong, which was still down 0.4% over the same period last year.

Out of the total, premium revenues in the non-life insurance segment made up 58.5 trillion dong, up 12.9%.

This was because the segment was not as badly affected by the crisis of confidence.

However, premium revenues in the life insurance segment was nearly 107 trillion dong, down 6.5%.

The life insurance segment still continues to face difficulties after the crisis of confidence in early 2023.

The main driver for the insurance industry’s growth in 3Q24 and the first nine months of 2024 came from the non-life insurance segment.

Insurance payments over this period were 64.1 trillion dong, up 18.4% over the same period last year.

Meanwhile, the insurance industry reinvested 821.2 trillion dong into the economy, up 10%.

Total assets of insurance companies were estimated at 978.9 trillion dong, up 9.8%.

The insurance industry recently continued to face difficulties due to the consequences of Typhoon Yagi.

According to reports from insurance companies, as of Sept 20, the life insurance industry received payout claims for 23 deaths and injuries due to the typhoon.

The total insurance payouts for the claims were estimated at around 13 billion dong.

For non-life insurance, companies received about 12,000 reports of damage to property and motor vehicles caused by Typhoon Yagi, with a total estimated cost of about nine trillion dong. 

 - ANN