VIETNAM INSURANCE BOSS EXPECTS MORE FLEXIBILITY FROM GOVT

Insurers in Vietnam expect the country’s government to relax investment regulations in order to allow the sector to operate more efficiently, according to Vietnam Insurance Association general secretary Phung Dac Loc. Existing rules restrict insurers’ investments to government bonds and bank deposits. Mr Loc said that if the government offered a “more flexible” environment, insurers could offer their customers loans to help guarantee premium payments. He noted that, although the new insurance law includes provisions for offering loans, the Law on Credit forbids it. Mr Loc also said that if insurers were allowed to take part in equity dealing, their customers could benefit from higher rates of return. He observed that insurers would be able to underwrite stock listings for larger companies, making the shares more attractive to investors.