• After a year of high profit growth in 2021 driven by a reduction/delay in compensation claims/ payments during the period of social distancing and a favorable stock market, we do not expect non-life insurers to be able to maintain such high profitability in 2022. Expenses will increase and the “bargains” of stock investment accumulated in the past will not be as abundant as before, although we see many opportunities for insurance premiums to recover growth momentum.
• On an industry scale, full-year premium revenue may increase by 13-14% to VND65,386 billion while the actual compensation expense on gross written premium may increase sharply by 34.6% to VND25,435 billion.
• Most businesses expect positive growth in premium revenue but are cautious about profits with plans for negative profit growth or positive profit growth but lower than the growth rate of premium revenue.

2022 premium revenue will regain high growth momentum…

After 2020 and 2021 when the growth rate was low due to the pandemic, the context of economic recovery and policy changes are opening up many opportunities for growth in premium revenue of many insurance products. Specifically:

• The government has set a target of GDP growth of 6-6.5% in 2022 and in normal conditions, the growth of life insurance premium revenue is always twice the growth of GDP. However, recent geopolitical turmoils have been causing negative effects on Vietnam's economic growth, indirectly affecting insurance demand in the coming time. Even so, we still expect premium revenue to recover well from the low growth base of 2021.
• The preferential registration fee policy for domestically manufactured and assembled cars, effective from December 2021 and lasting for 6 months, will be the driving force behind the growth of car sales and motor vehicle insurance premiums. However, Circular 14/2022/TT-BTC (effective from February 28, 2022) on supplementing regulations on the agreement to change the payment term of premium/premium payment delay and extend the policy term for customers who apply measures to prevent and control the COVID-19 pandemic in accordance with government requirements may affect the sales of motor vehicle insurance in the opposite direction.
• Decree 97/2021/ND-CP on compulsory fire and explosion insurance (effective from December 2021) is expected to raise risk awareness of industrial production enterprises, indirectly encourage demand for fire insurance and reduce the compensation rate of this product.
• Decree 20/2022 ND-CP on compulsory insurance in construction investment activities supplementing regulations on compulsory insurance of civil liability for third parties, creating a basis for revenue growth for liability insurance or construction insurance (depending on the classification of the insurance company).