New policy drives long-term development of the insurance market | Business | Business Insurance

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New policy boosts long-term development of insurance market hinh anh 1an office of Bao Viet Insurance Corporation in Hanoi. As of the end of May 2022, the total insurance premium income of the insurance market reached nearly VND 94.28 trillion, up 16% from the same period last year. (Photo mof.gov.vn)

Hanoi (VNS / VNA) – The newly issued Insurance Business Law it is expected to have a positive impact on the long-term development of the insurance market.

On June 16, the National Assembly approved the reform of the Insurance Business Law, with the vote in favor of 94.2% of the delegates. The revised law will take effect on January 1 of next year.

The Law stipulates the organization and operation of insurance companies, the rights and obligations of organizations and individuals involved in insurance, and the state management of insurance business activities.

According to the Ministry of Finance (MoF), the country currently has 77 insurance companies, including 31 non-life insurance companies, 19 life insurance companies, two reinsurance companies, 24 insurance brokerage companies and one branch of a foreign non-life insurance company. .

Data from the Vietnam Insurance Association showed that by the end of May 2022, the total insurance premium income of the entire insurance market reached nearly VND 94.28 trillion, up 16% from the same period. from last year. Of which, the non-life insurance market revenue was VND 27.56 trillion, 13.1% more than the same period of the previous year, and the life insurance market revenue was 66, VND 72 trillion, 17.2% more.

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Analysts say that Vietnam’s insurance market still has a lot of room for development, supported by the stable macro economy.

SSI Research forecast that insurance premium income could rise 18% to VND 256 trillion this year, driven by demand recovery and growth in online insurance and collaboration with insurtech firms.

Ngo Viet Trung, Director of the Department of Insurance Supervision and Management of the Ministry of Finance, said that the population of Vietnam was in the golden age, which creates an opportunity to develop many life insurance products, such as composite insurance and life insurance. of retirement.

In addition, non-life insurance products had many opportunities to develop thanks to economic growth and increased investment, construction and trade.

However, experts say that in addition to the new policy, the insurance market needs transparency to overcome unfair competition and fraud for sustained development.

According to Trung, Vietnam faces many challenges in developing its insurance market despite positive prospects. In addition to the unprofessional distribution channel of insurance agents, the insurance market still experiences unfair competition, lack of cooperation and mutual support in the exchange of information between insurers to fight fraud, which causes a decrease in competitiveness. throughout the insurance market.

Nguyen Thanh Nga, director of the Vietnam Insurance Development Institute, attributed the shortcomings to the lack of a database for the entire insurance market.

Currently, the Vietnam Insurance Association had created a database for vehicle insurance, but the insurance companies had not willingly shared their information, which makes the statistics incomplete and inaccurate, Nga said, adding that the system of management software of the insurance agency also had only the agent’s data. of life insurance companies.

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In addition, insurance companies currently use different information technology systems, so there is no common data connection, which causes insurance fraud to develop, according to Nga.

The industry urgently needed to build a database infrastructure, he said./.