Microinsurance development in Vietnam

Microinsurance provides financial services to help low-income and vulnerable people prevent risks and accumulate financial resources. Microinsurance has a low premium, small sum insured and simple procedure. Microfinance plays an important role in ensuring social security, contributing to poverty reduction. Vietnam has great potential for the development of microinsurance. However, the pilot implementation of microinsurance over the past time has not gained expected results. To help microfinance really become a safety net for the disadvantaged people such as the poor, people living in disadvantaged areas, ethnic minorities, and farmers, this paper presents an overview of microfinance and current development of microfinance, and makes some recommendations for the microinsurance development in Vietnam in the coming time.