Workshop to promote pro-poor insurance markets in Asia

Thursday, 28/02/2019 16:22
(CPV) - Around 40 Vietnamese Government officials, representatives of insurance organizations and domestic as well as foreign experts enjoyed an international workshop in Hanoi on February 27th-28th as part of the Regulatory Framework Promotion of Pro-poor Insurance Markets in Asia program, phase III (RFPI III).

Since 2013, RFPI Asia has been funded by the German Government and implemented by the German Development Cooperation Agency GIZ in cooperation with Vietnam’s Ministry of Finance (MoF) and Ministry of Agriculture and Rural Development (MARD).

Aiming to improve access to insurance in seven Asian countries, the program helps build the capacities for insurance regulation and supervision, while promoting the development of innovative insurance solutions for the low-income sector.

Overview of the workshop (Photo: GIZ Vietnam)
RFPI III will capitalize on the gains of the previous program phases and will now focus on developing Climate Risk Insurance (CRI) solutions, particularly in Indonesia, the Philippines and Vietnam. In particularly, Vietnam is considered one of the countries most vulnerable to climate change in the world.

The 2-day event aimed to address key issues that would lead to the advancement and uptake of CRI in Vietnam. It is also the platform for creating the structures that would facilitate the smooth implementation of the program, including The National Task Force, which is the steering and decision-making body of the program as well as Technical Working Groups on Policy, Product Development, and Use of Technology in inclusive insurance.

“Every year, natural disasters and epidemics cause damage equaling between 1.5 and 2% of GDP to Vietnamese farmers. They badly need protection for their labor and products. Agricultural insurance is an effective solution”, said Mr. An Van Khanh, Deputy Head of Cooperatives and Rural Development Department under MARD.

Agricultural insurance is a new and complicated product for most insurance companies and farmers, according to Mr. Bui Thanh Hai, Deputy Director of Non-Life Supervision Division, Insurance Supervisory Authority under MoF.

“Agricultural production in Vietnam is implemented in a very small scale, fragmented and technologically obsolete way, which makes it difficult to monitor and manage risks. In addition, natural disasters and epidemics in agriculture are complex and hard to predict, causing extensive and heavy economic damage. Furthermore, the current resources of businesses and local authorities for agricultural insurance are limited now”, he mentioned.

While, Dr. Jasper Abramowski, Country Director of GIZ Vietnam stressed: “We look forward to enhancing and integrating our objectives to the current and future policy and regulatory issuance of the country, the innovative ways we can grow business models and develop new and value-adding products, as well as the use of technology as a mechanism to provide easier insurance access to those who need it the most”./.

ATP

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