HANOI, VIETNAM - December 16, 2002 - Insurance professionals from U.S.-based ACE INA provided technical advice to members of the Ministry of Finance in Hanoi to assist in finalizing and implementing an early warning system designed to protect Vietnam's insurance consumers from potentially insolvent insurance companies.
An early warning system is a critical component of any regulatory structure. The system consists of a series of financial indicators (or statistical ratios) that can help the Ministry of Finance detect financial problems before an insurer becomes financially distressed. With early detection, a regulator can proactively work with the insurer to strengthen its financial position before policyholders suffer adverse harm.
"As Vietnam continues to develop its insurance market and strengthen its supervisory framework, these financial indicators will be critical in helping to maintain a strong level of financial solvency among Vietnam's insurers," said Julian Lipman, chief actuary for ACE Asia Life. "Clearly it is in the interest of all companies operating in Vietnam to establish a regulatory framework that places a premium on financial solvency."
This week's technical program with the Ministry of Finance is the most recent installment in a series of activities by ACE INA to provide technical assistance and advice as Vietnam further develops its insurance regulatory framework. ACE INA, based in Philadelphia, is the largest component of the ACE Group of Companies, one of the world's largest and most innovative providers of insurance, reinsurance, and financial services. ACE INA International Holdings, Ltd. has maintained a representative office in Vietnam since 1996 and formally submitted its application to establish and operate a life insurance company in Vietnam in August 2002.
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ACE INA Holdings Inc., whose ultimate parent is ACE Limited (NYSE: ACE), provides insurance and reinsurance products and services through operating subsidiaries for a diverse group of clients around the world. Additional information can be found at www.ace-ina.com.