(ĐTCK) In recent years, the legal framework for insurance business has been gradually perfected. Thus, the insurance market has made great strides, offering more diverse hedging products to customers.

Four (4) barriers of the insurance market

However, the insurance market still exist many problems and here are the barriers and challenges for the development of this market.

First, the situation of unfair competition is pretty common. The expansion of terms, conditions or lowering insurance premiums down below the safe level of some insurance companies has led to delay in compensation or cannot afford to pay compensation to customers .

Second, the market does not have statistics for the premium calculating, risk management with each group of customers and subject matter insured to prevent losses.

Third, the status of attracting personnel who have technical expertise and executive management in insurance companies occurs without remedies. Many insurance companies lost senior staff to rivals, leading to loss in competitive advantage and business operations affected.

Fourth, insurance fraud events are becoming increasingly sophisticated and complex, while the law does not have sanctions imposed for this profiteering. If insurers discovered profiteering behavior can only refuse compensation.

To mitigate this situation, ensure safe operation for insurers, strict sanctions is needed. Also bad habits of requiring commissions when buying insurance of the state owned enterprises, social organizations which cause increase in operating costs, generate corrupt practices have not been prevented.