A Proposal for the Social Implementation of Risk Studies: A Case Study of Mutual Microinsurance for Poor Rural Areas in Vietnam

Abstract

Developing countries in Asia, such as Vietnam, have rural poverty behind the economic growth, and the risk gap is growing. Since the local insurance companies have left this market from the viewpoint of efficiency, it is necessary to establish the new rural living safety net. This paper shows (1) whether Vietnam will become a commercial market for insurance in the long run by quantitative market estimation. As a result, the life insurance market in Vietnam will expand to 9% of the huge Japanese market in 2040. And the commercialization of market is possible. In order to deliver the security system to poor rural areas, (2) by means of “P2P insurance” using the Insuretech method, we propose “the mutual microinsurance system” that clears in supervisory and regulatory constraints.