Insurance premium revenue continues to decline

ANTD.VN - Insurance premium revenue in the first seven months of the year decreased by 5.54% compared to the same period last year, indicating that the insurance market continues to face difficulties.

According to the Ministry of Finance , in the first seven months of the year, total insurance premium revenue is estimated at VND 130,138 billion, a decrease of 5.54% compared to the same period last year. Previously, data released for May and June also showed a decline compared to the same period last year, with decreases of approximately 1.5% and 1.6% respectively.

Despite a sharp decline compared to the same period last year, fee revenue in July still increased by more than VND 83,000 billion compared to the previous month, significantly more than the increase of approximately VND 24,000 billion in June.

Insurance premium revenue continues to decline (image 1)

The insurance market continues to face difficulties following a series of recent media crises.

In the first seven months of the year, businesses also paid out insurance benefits estimated at 41,068 billion VND (an increase of 23.51% compared to the same period last year).

According to the Ministry of Finance, as of the end of July, the insurance market had total assets estimated at VND 870,002 billion (an increase of 11.77% compared to the same period last year), of which non-life insurance companies accounted for an estimated VND 118,871 billion and life insurance companies accounted for an estimated VND 751,131 billion.

Investments back into the economy are estimated at VND 727,964 billion (an increase of 14.19% compared to the same period last year), of which non-life insurance companies account for an estimated VND 65,557 billion; and life insurance companies account for an estimated VND 662,407 billion.

Total insurance reserves are estimated at VND 570,916 billion (an increase of 15.42% compared to the same period last year), of which non-life insurance companies account for an estimated VND 33,923 billion and life insurance companies account for an estimated VND 536,993 billion.

Total equity capital is estimated at VND 181,951 billion (an increase of 3.61% compared to the same period last year).

Regarding reports of violations in the insurance business, the Ministry of Finance stated that, as of July 31, 2023, it had received and processed 213 complaints and reports via telephone and 479 complaints and reports via email.

Previously, the Ministry of Finance also announced violations by four insurance companies selling insurance through banks.

According to Deputy Minister of Finance Nguyen Duc Chi, the Ministry is currently implementing the inspection process and will take strict action against the four insurance companies for violations in a short time, with further announcements made.

According to the 2023 plan, the Ministry of Finance will conduct inspections of 10 enterprises, including 5 insurance companies, 3 life insurance companies, and 2 non-life insurance companies.

Specifically, the focus will be on the business linkages between these enterprises and credit institutions and commercial banks, and the inspection content will be directed according to the Government's directives and the resolutions passed by the National Assembly .

The Deputy Minister stated that the Ministry of Finance, in coordination with the State Bank of Vietnam, has directed inspections and supervision to ensure that the insurance market operates in accordance with the law, guaranteeing the legitimate rights and interests of individuals and organizations participating in insurance as well as insurance businesses.

At the end of July, the Prime Minister also requested the Ministry of Finance to take the lead, in coordination with the State Bank of Vietnam and relevant agencies, in urgently inspecting, examining, and supervising the provision of insurance services, the sale of insurance through banks, and the operations of insurance companies to quickly identify and clarify whether there are any signs of violations, fraudulent acts, or violations of the law, in order to have a basis for strict handling according to the law and to implement timely and effective corrective measures.

Source link