The legal framework for the operation of insurance brokerage companieswill be improved to enhance their competitiveness, according to theInsurance Supervisory Authority under the Ministry of Finance.
Thedepartment's director Phung Ngoc Khanh said at a conference on June 17that insurance brokerage was becoming an important factor for thedevelopment of the insurance market as well as the country'ssocio-economic development.
At the conference, brokerage firmsspoke about the difficulties they face and proposed various improvementmeasures to the insurance watchdog.
Firms said that detailed regulations for operations and insurance brokerage fees are needed.
Theypointed out that in Vietnam, there are currently no regulationsallowing firms to charge fees for providing consultancies to customersand this has limited the operations of insurance brokerage firms.
Accordingto the statistics of the Ministry of Finance, total insurance premiumsthrough the brokerage channel increased rapidly by 22 percent last year.
During the 2011-14 period, total insurance premiums throughbrokerage reached 21.165 trillion VND (979.8 million USD), or equivalentto 22.7 percent of the total non-life insurance premiums during theperiod, and contributed nearly 300 billion VND (13.88 million USD) tothe State budget.
Commissions from insurance brokerage last year reached 492 billion VND (22.7 million USD), rising by around 10 percent.
Arepresentative of the department said that studies on the developmentof insurance brokerage in foreign countries are being carried out toseek measures that can be applicable to boost the development of thissector in Vietnam.
Currently, there are major gaps betweenforeign insurance brokerage firms and domestic firms in managementcapacity and market shares. Last year, five foreign brokers dominatedthe market, holding a combined share of more than 92 percent.
Inaddition, insurance premiums collected through brokerage remainedmodest, just 12 percent of the total premium of the insurance market,while the percentage of Thailand and the US were 30 percent and 85percent, respectively.
The department revealed that a regulationto allow insurance brokerage firms to offer consultancy services willbe taken up for consideration in line with international practices.
Meanwhile,firms have urged the foundation of an association of insurance brokersto enhance their operation capacity and standards.-VNA
Thedepartment's director Phung Ngoc Khanh said at a conference on June 17that insurance brokerage was becoming an important factor for thedevelopment of the insurance market as well as the country'ssocio-economic development.
At the conference, brokerage firmsspoke about the difficulties they face and proposed various improvementmeasures to the insurance watchdog.
Firms said that detailed regulations for operations and insurance brokerage fees are needed.
Theypointed out that in Vietnam, there are currently no regulationsallowing firms to charge fees for providing consultancies to customersand this has limited the operations of insurance brokerage firms.
Accordingto the statistics of the Ministry of Finance, total insurance premiumsthrough the brokerage channel increased rapidly by 22 percent last year.
During the 2011-14 period, total insurance premiums throughbrokerage reached 21.165 trillion VND (979.8 million USD), or equivalentto 22.7 percent of the total non-life insurance premiums during theperiod, and contributed nearly 300 billion VND (13.88 million USD) tothe State budget.
Commissions from insurance brokerage last year reached 492 billion VND (22.7 million USD), rising by around 10 percent.
Arepresentative of the department said that studies on the developmentof insurance brokerage in foreign countries are being carried out toseek measures that can be applicable to boost the development of thissector in Vietnam.
Currently, there are major gaps betweenforeign insurance brokerage firms and domestic firms in managementcapacity and market shares. Last year, five foreign brokers dominatedthe market, holding a combined share of more than 92 percent.
Inaddition, insurance premiums collected through brokerage remainedmodest, just 12 percent of the total premium of the insurance market,while the percentage of Thailand and the US were 30 percent and 85percent, respectively.
The department revealed that a regulationto allow insurance brokerage firms to offer consultancy services willbe taken up for consideration in line with international practices.
Meanwhile,firms have urged the foundation of an association of insurance brokersto enhance their operation capacity and standards.-VNA
