Developing the insurance market to 2015 (10/10)
10/10/2012 - 16 Lượt xem
Under
the strategy, the Vietnam insurance sector's revenue will account for
2-3 percent and 3-4 percent of the country's gross domestic product
(GDP) by 2015 and 2020, respectively; the scale of insurance reserve
funds, used for compensation and
insurance premium payments, will double and increase 4.5 times in 2015
and 2020, respectively, compared to 2010; capital that insurance pours
into the economy
will increase 1.7 times and 3.5 times in 2015 and 2020, respectively,
compared to 2010 to represent 3-4 percent of the country's GDP; the
insurance sector's contribution to
the state budget will double in 2015 and quadruple by 2020, compared to
2010; state authorities in charge of insurance management will observe
50 percent and all of insurance management and control principles issued by the International Association of Insurance Supervisors (IAIS) by 2015 and 2020, respectively.
To reach the previously mentioned targets, the Ministry of Finance prepared a plan for realizing the insurance market development strategy to 2015, aimed at satisfying the different demands of organizations and individuals, contributing to stabilizing the economy and social security, accomplishing international
commitments that Vietnam has committed itself to, and gradually
narrowing the gap in development level between Vietnam and other
countries in the region through the following groups of solutions.
Legal framework improvement
Guiding documents will be issued or amended and supplemented; guidelines will be issued for organizations and individuals to implement new provisions
in the law amending and supplementing some clauses of the insurance
business law that took effect July 1, 2012; problems faced by insurance
businesses in observing the law will be solved to make laws more
practical; things will be done to assure that international
commitments that Vietnam joins will be implemented effectively; and
efforts will be made to make the state management of insurance and
insurance business in Vietnam compliant with international standards and international insurance management and supervision rules.
Consistent
laws related to insurance business will be issued or amended and
supplemented; administrative procedures will be simplified to meet
international
standards to improve the competitiveness of Vietnam insurance sector
compared to its counterparts in other countries in the region and countries that have similar conditions with Vietnam; policies encouraging organizations and individuals from the agricultural, forestry and fishery sectors and low-income earners to buy insurance will be constructed.
Increasing insurance businesses' safety, efficiency and competitiveness
Less effective insurance businesses will be restructured, while the financial capability, service quality, administration and competitiveness of all insurance businesses will be gradually improved to meet international standards and in accordance with international rules.
Policies
which encourage insurance businesses to diversify investment profiles,
disperse risks, and improve investment efficiency and capital sources
safety in compliance with the objectives and solutions
described in the Vietnam securities market development strategy for the
2011-2020 period as well as the project for developing the Vietnamese
capital market to 2020 and plans and schedules for this project's implementation, will be constructed or improved.
Another solution is to take the initiative in working with the State Bank of Vietnam to share information related to insurance business policies and the management of insurance businesses belonging to financial and banking groups in accordance with cooperative regulations signed on February 29, 2012 by the Ministry of Finance and the State Bank of Vietnam.
Closure and division of the insurance market will be stopped through improving policies on fair competition between insurance businesses to which state groups and corporation contribute capital and other insurance businesses; inspection and supervision will be strengthened and organizations and individuals infracting fair competition policies and regulations will be punished strictly; cooperation will be made to review and evaluate efficiency of state corporations
and groups’ investment capital in insurance businesses to further
decrease their rate of holdings in insurance businesses as according to
the project to restructure state enterprises during the 2011-2015
period.
The insurance sector workforce will be assessed and classified, with criteria and conditions for individual positions reviewed and improved, while workforce training and quality will be controlled.
Promoting business development and encouraging product diversity
Regulations will be released on approving the quality of insurance products with simplified administrative procedures to assure similar conditions for life and non-life
insurance businesses that offer the same health insurance
products, increasing the attractiveness and competitiveness of
insurance products over other financial products especially investment connectivity insurance.
Other solutions are to work with relevant organizations
to effectively implement programs experimenting with types of insurance
benefiting from state assistance, such as agriculture and export credit
insurance; to find and suggest ways to solve problems faced by
insurance businesses and the insured upon the programs' implementation; to summarize and assess the programs and suggest measures to continue
developing these types of insurance in the coming period; to review,
amend and supplement required insurance policies related to fire and
explosions and motorized vehicle driver liability in accordance with actual economic development demands; to construct and issue regulations
and rates of required insurance applied to insurance brokers as stated
in the insurance business law and documents providing guidelines for
implementing this law.
Insurance distribution diversification and professionalization
To issue new regulations on insurance brokerage workforces and insurance brokerage training; to improve regulations on standardizing training for insurance agents and conditions and standards subject to insurance agents training organizations; to strictly control insurance agent training and certification; and to strengthen inspection and supervision of insurance businesses’ use of sales agents.
Strengthening state management of insurance businesses
To construct an effective control and management system; to strengthen management and control of insurance businesses based on concrete criteria; and to deal with violations according to law.
To standardize and develop state agency workforces in charge of insurance business management; to construct proper policies for insurance business management workforces especially those working in fields such as actuary.
Promoting international cooperation and integration
To construct schedules and plans for insurance business-related negotiations as part of bilateral and multilateral trade agreements, aimed at assuring Vietnam's interests in international integration.
To strengthen supervision of international integration; to assess the impact of integration and timely change policies to minimize the negative impacts of the process;
To take the initiative in joining the forum of Southeast Asian insurance management agencies and IAIS; to review the observation of management and supervision principles issued by IAIS, based on which to improve insurance business policies; and
To diversify international cooperation activities and partners; to combine international cooperation with the development of insurance market management and supervision objectives; and to improve the use of financial and technical assistance from international partners./.
Source: VEN
Source: VEN
