Contemporary legal framework governing microinsurance businesses in Vietnam

Abstract

The article analyses the nature of microinsurance, assesses the current law, and makes some recommendations to improve the Vietnamese legislation on microinsurance businesses. The research results show that although the legal framework on microinsurance businesses in Vietnam is constantly being improved, a number of shortcomings have arisen during its application, such as the lack of clear and uniform provisions on microinsurance participants, insufficient provisions on microinsurance distribution through insurance agents, insufficient provisions on incentive for microinsurance products providers to encourage these entities during products distribution, the lack of specific provisions on compensation periods for mutual organisations when providing microinsurance, etc. Based on the foregoing, the article proposes some solutions for improving the laws governing microinsurance businesses in Vietnam.