Since being licensed in late 2006, ACE Vietnam has been working to take advantage of its regional and global presence and experience. On the occasion of New Year 2009, VIB Forum reporter had an exchange talk with Mr Christopher Twomey, CEO cum General Director of ACE Insurance.
Vietnam’s economy is clearly affected by inflation. Financial services, securities, insurance services are also affected. How is ACE Insurance affected?
Inflation, which by Government statistics is still running high at 28.3 per cent as of August, 2008 has had a “knock-on” effect to the overall financial markets, and while the Government continues to implement policies to reign-in the inflation, the entire economy is of course adversely affected. However, from a Non-Life insurance perspective (both personal and commercial), the fundamental reasons that individuals and businesses buy insurance remain intact i.e., the need to manage risk, and the ability to “weather a storm” in the event of an accident, claim or catastrophe is just as present now as it was ten months ago … perhaps even more so in today’s challenging financial environment!
Perhaps also somewhat as a result of the economy, I’ve been witnessing a growing awareness that protection and risk management of certain risks are best undertaken by experts rather than an individual or company. This is also fuelling some of the continuing growth of the Non-Life insurance market.
As an expert in the insurance sector, how do you evaluate the development of capital and insurance markets in Vietnam?
Within a Non-Life insurance context, the capital market and the financial market in general have of course experienced some challenges recently, but still hold favorable long-term prospects. The Government has been taking some small steps, and is working to modernise its overall approach, making it more flexible and bringing it in-line with other countries’ approaches to capital management and solvency requirements.
In regard to this, what is the role of Finance Ministry?
I see the role of the Ministry of Finance’s Insurance Department as three-fold: To protect the insurance buyers, both personal and commercial, and by this I mean for the Ministry of Finance to develop and enforce rules to keep insurance companies solvent so that they can meet their promises, and protect the consumers when claims occur; to promote a "level playing field" within the industry, ensuring all business practices are fair and honest, and all industry Decrees, Circulars, Rules and Regulations are applied equally to all insurers.
By this I’m suggesting that the Ministry of Finance keep a pulse on the regulatory, compliance and governance fronts both regionally and internationally through participation in such groups as the International Insurance Supervision Association to learn industry “Best Practices” in order to further the development of the insurance industry, consistent with international standards; to encourage and facilitate the growth, development and expansion of the insurance industry in what is still a relatively young insurance market. I would also expand this concept to include the need to further develop talent for the industry, with the need to seek out and promote insurance-specific education and learning opportunities, both at the regional and global levels.
Vietnam lacks a deep talent pool for the insurance industry, and with the Non-Life insurance sector continuing to grow 30 percent-40 percent year-over-year, this talent vacuum will only worsen. Let me be clear though, it is not only a responsibility of the Ministry of Finance, but of all Vietnamese insurers as concerned and corporate citizens.
M.N
Vietnamese
