Monopolistic insurance market to be abolished

VGP – Việt Nam has set the target to abolish monopoly in insurance business activities within the next three years, according to the 2011-2020 Strategy for insurance market development freshly approved by PM Nguyễn Tấn Dũng.

March 16, 2012 8:31 AM GMT+7

Illustration photo

Under the strategy, to restructure the financial and insurance markets, top solutions will be the consolidation of insurance system safety and improvement in efficiency and capacity of insurance companies.

In 2016-2020, the Law on Insurance Business No. 24/2000/QH10, the Law on amendments to the Law on Insurance Business No. 61/2010/QH12 as well as legal documents on detailed implementation of these laws will be amended comprehensively.

The insurance market is expected to contribute some 2%-3% to the gross domestic product by 2015 and 3-4% by 2020.

By 2015, total capital mobilized by the insurance companies for the economy is projected to increase by 1.7 times against 2010 and 3.5 times by 2020.

Currently, 43 insurance companies are operating in Việt Nam, including 29 non-life service providers, according to the Ministry of Finance’s statistics.

The ministry said it would divide the market into four groups like the banking sector had done against commercial banks.

By Hải Minh