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

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 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.-VNA