The entire insurance market is expected to expand between 12 and 15 percent in 2015, according to the Ministry of Finance.

The ministry forecasted that the general or non-life insurance marketwill rise between 12 and 14 percent and the life insurance market willjump 20-22 percent.

A number of measures need tobe taken in order to achieve those targets, the ministry said, one ofwhich is to comprehensively develop the insurance market to meet demand.

Another measure is to increase the financialand business capacity of insurance companies to meet competitiveness andinternational integration.

The ministry alsohighlighted the need to restructure insurance companies to develop themarket safely, effectively and sustainably.

In2014, the market grew by 14.2 percent with revenue of 52.7 trillion VND(2.4 billion USD) from insurance fees. Of the figure, life insuranceaccounts for 27.4 trillion VND (1.3 billion USD) and the remaining issourced from general insurance.

Total paymentfor damage claims in 2014 was 18.6 trillion (862 million USD), up 4.1percent from 2013, in which life insurance companies paid 8.2 trillion(380 million USD) in compensation.

Last yearalso saw an increase in enterprise and community confidence in insuranceservices and its management agencies after the Ministry of Finance andinsurance companies worked to resolve damage claims promptly.

Guidelines on the enforcement of the Insurance Business Law andrelevant legal documents were issued and revised in 2014, helping createa favourable legal framework for the healthy and sustainabledevelopment of the market, fulfilling bilateral and multilateralcommitments in international integration.

Insurance companies also tapped potential markets and developed newinsurance products last year, such as voluntary retirement plans,aquaculture insurance, agriculture insurance and export creditinsurance. More than 300,000 farmer households have joined agricultureinsurance during the pilot three-year period.-VNA