Despite ongoing economic uncertainties around the globe, Vietnam’s insurance market is booming, says ratings agency AM Best.

A greater take-up of insurance is mainly responsible – due to an emerging middle class, increased awareness of the benefits of insurance and “compulsory lines of business” such as motor third-party liability coverage.

The Association of Vietnamese Insurers estimates that overall insurance revenue reached 37.5 trillion dong ($1.8 billion) last year, a 21.6% increase on the year before.

The market consists of 29 non-life insurers and 14 life companies. The Ministry of Finance regulates these through its Insurance Supervisory Authority.

Non-life insurance revenue was about 21.5 trillion dong ($1.02 billion) last year, up 26%. Life insurance sales reached an estimated 16 trillion dong ($760.62 million), a 16% increase.

The report states that foreign insurers are being increasingly drawn to Vietnam, as more of people emerge from poverty and as the economy grows.