Risk Management and Major Reserve at Vietnamese Insurance Companies

Abstract

Through methodology and meta-analysis, the research team presented the content of risk, risk management in insurance enterprises and regulations, methods, and bases for setting up professional provisions. The article also identifies some limitations in regulations on setting up professional reserves at insurance enterprises. There are many methods but there are no specific instructions in the regulations, causing difficulties and a lack of legitimacy for the risk management department to evaluate the provision at the enterprise. Using the basis of deduction such as the 1980 CSO mortality table is no longer suitable for the human body in Vietnam and the current situation. Law there is no provision on provision for compensation for applications that have refused to pay within 3 years from the date of refusal. Finally, the research team believes that, in order to improve the effectiveness of risk management, the setting up of professional provisions should have some changes in regulations such as specifying the methods of provisioning, building a Mortality rate suitable to the human body in Vietnam and put into practice as a basis for making professional provision is very necessary or supplementing the requirement that insurers must make a claim reserve within a short period of time 3 years from the year the insurance enterprise refuses the application for insurance payment.