Vietnam launches new insurance market development strategy

The Vietnamese government has formulated the Strategy for the Development of Vietnam’s Insurance Market to 2030, with the goal of developing insurance entities with strong financial capacity, management capacity approaching international standards, efficient operations and the ability to compete actively in domestic and regional markets.

Deputy Prime Minister Le Minh Khai signed Decision No. 07/QD-TTg dated 5 January 2023, approving the Strategy, according to local media reports, reports our sister publication Asia Insurance Review.

The new strategy aims to perfect the system of mechanisms and policies concerning the insurance industry, improving the safety, sustainability and efficiency of the market, and contributing to economic stability and social security.

An approach adopted in the strategy is to promote digital transformation to create the most convenient conditions for organisations and individuals to access insurance. The approach also encourages the insurance sector to deploy information technology in business activities, diversify insurance products, professionalise distribution channels, and meet the increasing insurance needs of insurance companies, organisations and individuals.

The strategy targets that the insurance industry’s revenue will expand at an average rate of 15% in the 2021-2025 period, with economic contributions reaching 3%-3.3% of GDP by 2025. The average growth rate for the period 2026-2030 is targeted at 10% per year.

The strategy sets out a number of key solutions, including:

• Strengthening financial capacity, risk management, corporate governance, quality of customer service and publicity and transparency of insurers;
• Developing and diversifying insurance products, with the focus on customers to better meet the diverse needs of organisations and individuals;
• Diversifying and professionalising insurance distribution channels, creating conditions for customers to easily access insurance;
• Promoting the use of information technology in all stages of insurance business activities, while taking measures to protect customer data and confidentiality;
• Building a pilot institutional framework for insurance technology services according to best practices, and creating favourable conditions for businesses to develop new digital insurance services;
• Promoting the digital transformation of insurance market management and development, through the creation of digital platforms and applying digital technology solutions;
• Strengthening the regulatory system by improving the effectiveness of inspections, examination, supervision and administrative sanctions in the insurance sector; and boosting the role of socio-professional organisations in the field of insurance.

For further news from Asia Insurance Review, please click here https://www.asiainsurancereview.com/