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| A paddy field in the Mekong Delta's Hau Giang Province is affected by heavy rain. Viet Nam must develop policies to promote the popularity of agriculture insurance, especially at a time when natural disasters are significantly impacting agricultural production, according to the finance ministry. — VNA/VNS Photo Duy Khuong |
HA NOI (Biz Hub) — Viet Nam must develop policies to promote the popularity of agriculture insurance, especially at a time when natural disasters are significantly impacting production, according to the finance ministry.
Nguyen Quang Huyen, deputy director of the Insurance Authority Agency under the Ministry of Finance, said it was essential to continue insurance products for the agriculture sector because the pilot implementation proved its important role as a financial solution for farmers.
"Policies to encourage farmers to buy agriculture products are needed," Huyen said.
Huyen said the finance ministry would work with the Ministry of Agriculture and Rural Development and other authorities on the continued implementation of agriculture insurance products on a large scale, and on a voluntary basis with financial support being provided to vulnerable groups like the poor and near-poor.
Regarding insurance for fishermen, Huyen said the ministry would push to implement Decree 67 on fishery development policies by removing bottlenecks that hurt insurance firms and fishermen.
As of June 30, insurance for the fishery sector collected premiums worth VND387 billion (US$17.3 million), with nearly 15,000 boats and 145,960 fishermen insured.
Compensation was estimated at VND59.8 billion, to date. There were four insurance firms providing insurance to fishermen, including Bao Viet, Bao Minh, Petrolimex and PVI.
During the 2016-20 period, the ministry will focus on improving the legal framework for insurance operations, especially policies to encourage disaster insurance and diversifying insurance products to meet market demand.
In addition, regulations on risk and financial management would be issued to enhance system safety, as well as the operation efficiency and competitiveness of insurance firms and the development of a market database to promote transparency and competition.
The finance ministry's statistics showed that in the first half of this year, total premiums reached more than VND38.6 trillion, representing a rise of 26 per cent over the same period last year.
There were 60 insurance firms and one foreign branch in Viet Nam, including 29 non-life insurance, 17 life insurance, 12 brokerage and two reinsurance firms. — VNS