The country targets to have 18 percent of its population covered by non-life insurance by 2030, according to the Vietnam’s insurance market development strategy recently approved by the Prime Minister.
Under Decision 07/QD-TTg dated January 5, the Strategy’s overall target is to improve the mechanisms and policies on insurance business toward adequacy, transparency and equality, approaching international standards and practices on insurance business, while facilitating the comprehensive development of the insurance market and ensuring the fulfillment of Vietnam’s obligations under international commitments.
In addition, it is expected to develop insurance businesses that are financially capable and experienced in corporate governance up to international standards, operate efficiently and are highly competitive on the domestic and regional markets.
Specifically, the Strategy expects that insurance businesses’ revenues will grow at an average rate of 15 percent and 10 percent with sector contributions equal to 3-3.3 percent and 3.3-3.5 percent of GDP in the 2021-25 and 2026-30 periods, respectively.
Meanwhile, the average insurance premium per capita will reach VND 3 million by 2025, and VND 5 million in the subsequent five years.
In the 2023-30 period, the annual growth rate of revenues from insurance products in the cyber environment will reach 10 percent on average.
To materialize the set goals, it is necessary to improve the law on insurance business, and raise the financial capacity, risk management, corporate governance, customer service quality and publicity and transparency of insurers, develop and diversify insurance products, and diversify and professionalize insurance distribution channels.
Other tasks set forth by the Strategy include improving the quality of human resources; intensifying the communication about the role, importance and necessity of insurance and law on insurance, and the application of information technology in insurance business operations, enhancing the state management of insurance business, and improving effectiveness of state management, inspection, examination, supervision and violation handling in the insurance sector.- (VLLF)
