Finance Ministry Says to License More Insurance Firms

Finance Ministry Says to License More Insurance Firms

Vietnam’s Ministry of Finance (MoF) is considering licensing for some foreign insurance companies and the number of new firms will depend on Vietnam’s pledges during further integrating into the world economy, said head of Insurance Department under the MoF Le Quang Binh.

The ministry is considering providing licenses for the French Groupe Prevoir and the US ACE INA. Both of them were seeking to establish a wholly foreign-owned life insurance company in Vietnam, he said, adding that there would be more insurance firms licensed in the coming time.

The MoF has recently licensed the leading insurance brokerage firm in the US - Marsh Inc to operate in Vietnam as an insurance brokerage. It also granted a licence for China’s Ping’ An Insurance Company to open a representative office in Vietnam.

Currently, Vietnam has 18 insurance companies, one re-insurance company and five insurance brokerages. They offer around 500 insurance products. There are also around 30 representative offices of foreign insurers in the local market.

Total insurance premiums in Vietnam rose 25 per cent in 2004 totaling VND14.232 trillion (USUS$906.5 million), accounting for nearly 2 per cent of GDP.
Vietnam Economic Times