News Regulations23 Jan 2023

Vietnam:Insurance regulator pledges to continue with supporting policies to help insurers

| 23 Jan 2023

The insurance regulator will continue to implement solutions to support the development of the insurance market in 2023 and beyond, according to Mr Ngo Viet Trung, director of the Insurance Management and Supervision Department of the Ministry of Finance.

Total assets of the insurance market were estimated at VND811,312bn ($34.6bn) as of 31 December 2022, up 14.51% compared to 12 months previously. Total insurance premium revenue in 2022 is estimated at VND251,306bn, up 15.09% over 2021; while insurance payouts are estimated at VND4,018bn, an increase of 23.29% compared to 12 months previously, reported Finance Magazine.

In 2022, Vietnam's insurance market still faced many difficulties and challenges due to the impact of the COVID-19 pandemic. But the government's supporting policies helped the insurance sector to maintain creditable growth.

In particular, the Law on Insurance Business 2022, effective from 1 January 2023, will result in fundamental changes that promote the safe, stable, and sustainable development of the insurance market. 

On the part of customers, awareness of the importance and significance of life insurance and health insurance has increased significantly over the past years and especially during the COVID-19 pandemic. People are therefore more proactive and earlier in accessing and participating in insurance.

Mr Trung says that the Ministry of Finance continues to preside over perfecting the legal framework on insurance business activities. Among the tasks ahead, the regulator will continue to:

  • Complete the legal system for insurance business;

  • Develop and promulgate documents guiding the implementation of the Law on Insurance Business covering issues such as: risk-based capital, risk management, internal control, intervention measures; 

  • Guide the collection and management of data on a common and synchronous database for the insurance market; 

  • Review and finalise legal documents on the introduction of specific insurance products that have an impact on social security, investment promotion and socio-economic development, such as compulsory insurance, microinsurance, agricultural insurance, voluntary pension insurance, investment-linked insurance, disaster insurance; commercial health insurance and social health insurance;

  • Strengthen the financial capacity, risk management, corporate governance, customer service quality and publicity and transparency of insurers;

  • Enhance the disclosure of complete, comprehensive and timely information to help insurance buyers and related organisations understand the organisational structure, business performance and financial situation of the insurance company;

  • Develop a diversified range of insurance products;

  • Diversify and professionalise insurance distribution channels;

  • Develop and improve the quality of human resources;

  • Raise insurance awareness;

  • Promote the application of information technology in insurance business activities;

  • Establish a mechanism to share information between insurers in order to prevent insurance fraud and provide legal support and advice, and settle claims;

  • Promote transparency of management and supervision activities of the regulator;

  • Develop and implement an integration roadmap in the insurance business sector with ASEAN; meet international economic integration commitments in the insurance field.


 


 

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