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Insurance sector short of staff

Update: January, 21/2012 - 09:13

Vice director of the Insurance Management Department Ngo Viet Trung spoke with Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) about the shortage of insurance professionals. about the shortage of human resources in the insurance sector

Why is Viet Nam short of insurance professionals?

The fast development of the insurance market in Viet Nam in recent years has led to a shortage of professionals. There are 57 insurance enterprises operating in the country. Of those, 29 are involved in the non-life insurance sector, 14 in life insurance, 12 in insurance brokerage and two in re-insurance. In the early 1990s, there were about 2,000 people working in the sector. Now there are 18,000, not including those who work as insurance agents.

Almost all of the insurance companies are short of properly trained staff. Existing companies want to expand their market share, while new ones are being formed. The situation is becoming more and more serious.

Senior managerial staff now have worked for four to five companies. Heads of departments (including customer care, investment and accounting) are now having to do the same. However, the biggest shift has been in the number of insurance sale agents, which has soared.

What is the main cause of the shortage?

Insurance staff training in Viet Nam is inadequate and unable to meet demand.

The business of insurance is taught in only a few universities such as the Academy of Finance, the National Economics University and HCM City Economics University. However, the training quality has yet to meet enterprises' requirements. The main insurance companies say they usually have to re-train new graduate employees. Universities just provide the basic theory and are light on practical skills such as premium calculation. At the moment, just about 500 university students graduate in insurance, well short of the numbers needed.

What can the ministry do to solve the problem?

The ministry is step by step standardising the training of insurance staff and has formulated a circular entitled Insurance Business Law. The move is expected to improve the quality of human resources and minimise personnel shortages.

Moreover, the ministry will keep a close eye on training at insurance companies.

My department's Centre for Insurance Research and training will also issue textbooks on insurance training. — VNS

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