Decree 67/2014-CP of the Government is a big initiative of the Party and Government to develop aquaculture industry and support fishermen to continue their work to protect the territorial sea of the nation. To materialize this initiative, relating to insurance, the Ministry of Finance has issued Circular No 115, 116/2014/TT-BTC dated August 20^th 2014 guiding the implementation of insurance policy.

After more than a year of implementation, on 22^nd April 2015 in Ninh Binh, Vietnam National Reinsurance Corporation (VINARE) – the insurance enterprise assigned to place reinsurance has cooperated with Bao Viet, Bao Minh, PJICO and PVI to organize the Offshore fishing insurance review conference according to Decree 67 of the Government for the period of 2015-2015.

Participants at the conference are representatives from insurers (Board of Management, Manager of Underwriting Department, Reinsurance Department, underwriting staff) and Mr. Phan Kim Bang – Chairman of Association of Vietnamese Insurers.

Representatives from VINARE presented at the conference. In the presentation, VINARE has consolidated results of the offshore fishing insurance program according to Decree 67 of the Government as at 31^st December 2015 as well as collected opinions, evaluations and proposals from (re)insurers in the implementation process. Accordingly, there were only 36.7% of more than 31 thousands offshore fishing boats and logistic service boats insured under this program. Insurers have also insured more than 103 thousands workers working in these offshore fishing boats. Total written premium volume was more than 256 billion dong, in which more than 88% is premium for hull, machines, equipment and fishing tools. Total claims paid and estimated outstanding loss was up to nearly 120 billion dong.

Representatives from insurers also gave their opinions at the Conference. Many contents relating to cooperation between insurers, relevant agencies and fishermen during the process of issuing policy, premium payment, loss adjusting and claim handling have been discussed, evaluated and analyzed. Although insurers found that the deployment process has had some encouraging results and insurers have received support from Departments, local authorities as well as the fishermen, the results were still not up to expectations. Some big concerns are some issues in underwriting, implementing decision 48/2010/QD-TTg of the Prime Minister and Decree 67/2014/ND-CP, unbalance of premium rate and insured risk, value of insured asset, increase in number of total losses with signs of insurance fraud, trend of underwriting loss and solutions, etc.

On behalf of Association of Vietnamese Insurers, Mr. Phan Kim Bang – Chairman of Association of Vietnamese Insurers gave his remarks at the Conference. He highly valued efforts of insurers, reinsurers selected to deploy offshore fishing insurance program according to Decree 67 of the Government. Although there is not enough time to sufficiently evaluate the results of the program, at this stage, we see the high level of consensus among insurers, reinsurers, fishermen, departments and local authorities as well as other relevant agencies in implementing the big initiative of the Government. Suggesting insurers to enhance cooperation between insurers selected to participate in the program, closely collaborate with relevant authorities and enhance communication for fishermen to participate in the insurance program. He also suggested VINARE to continue to be the connector to regularly update proposals, evaluations relating to the program as the basis for consulting the Ministry of Finance and relevant authorities to issue relating policies during the deployment process as well as after the end of the pilot program according to Decree 67. Mr. Bang also committed to giving directions to departments of the Association of Vietnamese Insurers to closely cooperate with insurers and relevant authorities to have the best solutions to successfully achieve the target of the Decree 67 of the Government.

On behalf of the insurers, Mr. Pham Cong Tu – Chief Executive of VINARE thanks Mr. Phan Kim Bang for his remarks and commits to make the best effort and cooperate strongly with relevant authorities to have the report soon to propose to the Ministry of Finance on issues relating to the deployment process.