Vietnam unveils ambitious life growth plan

March 8 2019 by InsuranceAsia News Staff

Vietnam’s government is looking for its people to improve their life insurance coverage as overall insurance assets grow sharply in the country.

Prime minister Nguyen Xuan Phuc wants 11% of Vietnam’s population to have bought life insurance by 2020, and for that figure to reach 15% by 2025.

The plan aims to develop a safe, sustainable and effective insurance market able to meet demand and ensure social security. As a result insurers will have to enhance information transparency and insurance distribution channels will be professionalised and modernised to facilitate clients’ access.

An information system will also be built to systematise all data of the sector, thus improving management and controlling risks, according to the plan.

The plan aims to help insurance businesses strengthen their 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% by 2020 and 15% between 2021 and 2025.

The goal is for premium income to reach around 3% of GDP by 2020 and 3.5% by 2025. Under the plan, insurance products will be diversified to meet the different needs of organisations and individuals.

The market has been growing in sophistication over recent years with the likes of Generali and Aviva beefing up their operations.