Vietnam - Vietnam’s insurance premium targeted at 2-3pct GDP by 2015

As per the Decision No 193/QD-TTg on Vietnam’s insurance market development strategy during 2011-2020 period, the total premium of the insurance sector is expected to reach 2-3% of GDP (gross domestic product) by 2015 and it would be 3-4% of GDP by 2020.

The scale of standby funds of insurance operations to meet the obligation of compensation and insurance payment for customers would double by 2015 and increase 4.5 times by 2020 in comparison with 2010.

The total capital mobilization sources for the economy of insurers till 2015 would increase 1.7 times over 2010 and it would grow 3.5 times by 2020 in comparison with 2010, equalling to 3-4% of GDP.

The insurance industry is also expected to double its contribution to the state budget in 2015 and it will increase four times by 2020 in comparison with 2010.

In addition, the decision also stated that from now till 2015, the insurance sector will make restructuring toward consolidating the organization and operation of weak and inefficient business, gradually improving the corporate governance standards and insurance in line with the international practice.

During 2016-2020 period, the insurance sector will build mechanisms and policies to strengthen the management and operations of the insurers on three key requirements: capital adequacy, risk management and information transparency.

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