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Plan targets 15 percent of population with life insurance by 2025

11/3/19
A plan approved by Prime Minister Nguyen Xuan Phuc targets that 11 percent of Vietnam’s population will have bought life insurance by 2020, and the rate will reach 15 percent by 2025.

A plan has been approved with a view to developing a safe, sustainable and effective insurance market (Photo: VNA)
The plan aims to develop a safe, sustainable and effective insurance market able to meet demand and ensure social security. 
It also looks to help insurance businesses have strong financial capacity, meet international standards and be competitive domestically and regionally.

It targets average annual growth of the market’s total assets, investment capital, operation reserves, owners’ capital and revenue at 20 percent by 2020 and 15 percent between 2021 and 2025.

Meanwhile, the average premium income is aimed to account for a maximum of 3 percent of gross domestic product by 2020 and 3.5 percent by 2025.

Under the plan, insurance products will be diversified to meet the different needs of organisations and individuals.

Among market restructuring solutions, insurers will have to enhance information transparency and insurance distribution channels will be professionalized and modernized to facilitate clients’ access.

An information system will also be built to systematize all data of the sector, thus improving management and controlling risks, according to the plan.
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All comments [ 12 ]


Red Star 16/3/19 18:15

The plan aims to develop a safe, sustainable and effective insurance market able to meet demand and ensure social security.

yobro yobro 16/3/19 18:18

The insurance regulation in Vietnam has been evolving, with significant changes introduced during 2016 and 2018.

For A Peace World 16/3/19 18:22

The insurance industry is also expected to benefit from the country’s projected GDP growth of more than 6 percent annually over the next three years.

It also has great potential as the country has one of the world’s lowest life insurance penetration levels at less than 1 percent of the GDP. The average insurance premiums in Vietnam stand at US$30, much lower than the global average of US$595 and Southeast Asia’s US$74.

Duncan 21/7/19 14:50

The life insurance industry will grow at over 25 per cent this year, according to the Insurance Association of Việt Nam.

Kevin Evans 21/7/19 14:51

The digital age presents many insurance companies with opportunities for further growth, cost reductions, and product differentiation, but modernisation challenges remain.

Enda Thompson 21/7/19 14:52

As a result of rapid urbanisation, the pull of major cities is stronger than ever with people continuing to flow into them.

Egan 21/7/19 14:52

the percentage of people owning life insurance in Vietnam is deemed rather small, which presents a great deal of opportunities for the insurance industry as a whole.

Jacky Thomas 21/7/19 14:53

Favourable circumstances exist for growth in the sector, with young, urban based customers who are the most familiar with digital applications being the prime growth market.

Robinson Jones 21/7/19 14:55

The application of digital technology has allowed the company to enhance customer experience in insurance services, as well as improve communication with customers.

Wilson Pit 21/7/19 14:56

the prospect of growth within Asia is considered a major part of growth for the ­enterprise, and Vietnam has been identified as an important nation in its development plan.

Allforcountry 21/7/19 14:56

The insurance industry, in Wadhwani’s opinion, is not ­traditionally regarded as a ­fast-growing sector that provides quality customer care solutions.

Swift Hoodie 21/7/19 14:57

Now is the right time for the industry to change and adopt new solutions and ­innovations that provide ­products to consumers.

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