Asian life insurance market summit opens in Hanoi

Development of a life insurance market in Asia and Vietnam topped the agenda of an international summit in Hanoi on April 16.

The Asian Life Insurance Summit, which drew 150 domestic and foreign experts, was hosted by the Asian Life Insurance Magazine.

According to a member of the Bao Viet Insurance Group Board of Directors, Nguyen Duc Tuan, Vietnam ’s life insurance market is facing many challenges such as high inflation which he says has lowered public confidence in long-term investments, particularly long-term insurance.

He said forecasts of high inflation rates in 2008 is leading to fiercer competition among life insurance providers.

According to another financial expert, competition among financial institutions and life insurance providers in attracting capital from the public is increasing in Vietnam .

Between 2004 and 2006, such competition was considered the key reason behind depreciation of the life insurance market.

In addition, the market’s legal framework has not yet been adjusted to meet sectoral development as Vietnam further integrates into the global economy.

VNA

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