The insurance market's turnover at the end of last year accounted for2.44 percent of the nation's gross domestic product (GDP), meeting thenational strategy's target.

Minister of Finance Dinh Tien Dungsaid in a report that the turnover of the insurance market posted anaverage growth of 14.5 percent per year during the 2011-14 period,nearly tripling the average GDP growth rate.

The results were"significant," the minister said, given the slow economic recovery,declining interest rates, low credit growth, and unimproved incomes ofthe people.

Agency for Insurance Supervisory and Managementunder the ministry projected the growth rate of insurance premiums thisyear in double digits, specifically around 10 to 12 percent for non-lifeinsurance and 15 to 17 percent for life insurance.

Dung notedthat this year, the ministry would introduce regulations formicroinsurance, which provides protection for low-income people,together with completing regulations for other kinds of insurance,including agricultural and pension insurance. In addition, the ministryaims to enhance system security, the competitiveness of insurance firmswhile encouraging the diversification of insurance products anddistribution channels at the same time, tightening management, andpromoting international cooperation in insurance.

The reportalso revealed that as of the end of March, there were about 60 insurancecompanies in the country, offering non-life insurance, life insurance,insurance brokerage, and re-insurance.

The Finance Ministry'sstatistics show that in the first quarter of this year, the totalturnover from insurance premiums reached more than 14.38 trillion VND(665.75 million USD), representing a rise of 18.7 percent over the sameperiod last year.

Under the national strategy for developing theVietnam insurance market during 2011-20, the insurance industry's totalrevenue is expected to account for 3 percent of the GDP this year,instead of 2 percent, and between 3 percent to 4 percent by 2020.-VNA