KIDI Launches Full-Scale 'K-Insurance' Infrastructure Project in Vietnam

The Korea Insurance Development Institute (KIDI) announced on the 22nd that it signed a business agreement on the 21st with the Vietnam Insurance Development Institute (VIDI) to support the establishment of K-Insurance infrastructure in Vietnam.

KIDI has been exchanging with the Vietnam Insurance Supervisory Authority (ISA) since signing a Memorandum of Understanding (MOU) in 2015. ISA established VIDI using KIDI as a role model. This agreement is significant as it formalizes concrete cooperation to enable VIDI to benchmark KIDI.

KIDI plans to support VIDI in smoothly performing insurance rate calculation and statistical management functions by providing training in rating and actuarial fields, along with building a Vietnamese insurance database for risk assessment.

First, they will share methods for collecting and processing basic statistics for rate calculation in the life insurance and automobile insurance sectors, and transfer step-by-step know-how such as the logic for calculating risk rates by coverage.

Additionally, KIDI will share knowledge about the database used for rate calculation, analyze the environment for local application, and propose plans for building and managing a database suitable for the Vietnamese market environment.

Heo Chang-eon, President of KIDI, stated, “We will transplant K-Insurance infrastructure into the Vietnamese market, which has great growth potential and active entry of Korean insurance companies, to support the smooth overseas expansion of domestic insurers.”

KIDI has been promoting cooperation with five Southeast Asian countries, starting with an MOU with the Indonesian Financial Services Authority (OJK) last year, followed by MOUs with the Philippines, Malaysia, and Thailand in February, and is now intensifying cooperation with Vietnam.

Huh Chang-won, President of the Korea Insurance Development Institute (right), and the President of the Vietnam Insurance Development Institute. [Photo by Korea Insurance Development Institute]