Ministry seeks feedback on draft insurance law amendments
The Law on Insurance Business 2022 has contributed to promoting market development, but over time, there have been shortcomings that need to be amended to simplify administrative procedures, remove difficulties and create conditions for business development.
HÀ NỘI — The Ministry of Finance (MoF) is seeking public feedback on draft amendments to the Law on Insurance Business, aiming to create a more coherent legal framework and promote sustainable growth in the sector.
According to the ministry, the Law on Insurance Business 2022 has supported market development, but over time, shortcomings have emerged that need addressing to simplify administrative procedures, remove obstacles and create better conditions for business growth.
Growth in the Vietnamese insurance market is showing signs of slowing. Key market indicators from 2022–2025 increased by only about 10 per cent, highlighting the need for policies that encourage insurance enterprises to innovate and design products to meet the diverse needs of organisations and individuals across economic and social activities.
The ministry noted that amendments are also necessary to align the law with other recently updated legal documents, including the Law on Inspection and the Law on Handling of Administrative Violations, as some provisions of the current Law on Insurance Business are now inconsistent with these regulations.
Under the draft amendments, the MoF proposes to cut, reduce and simplify conditions for licensing the establishment and operation of insurance enterprises; requirements before officially operating; standards for managers and controllers; overseas investment; insurance agency operations; licensing insurance brokerage enterprises; and conditions for providing insurance auxiliary services.
Administrative procedures for registering the principle of separating insurance equity capital and insurance premium sources for non-life insurance and reinsurance enterprises are also drafted for simplification.
The amendments stipulate that life insurance agents of a company cannot sell products from other life insurance companies, though they may sell non-life insurance and vice versa. The regulation also applies to non-life insurance companies, foreign branches, and micro-insurance agents.
According to the MoF, the changes aim to remove obstacles for life and non-life insurance enterprises within the same corporation or parent company when organising agency networks, while ensuring transparency and consistency in law enforcement.
The Vietnam Insurance Association is promoting the development of a separate code of conduct for life insurance agency managers to maintain transparency and consistent market operations. — VNS
Bualoi-related insurance payouts amount to VNĐ357 billion
As of October 2, insurance companies have reported six claims related to loss of human life and 2,281 non-life insurance claims related to Typhoon Bualoi, with a total estimated insurance payout of more than VNĐ357 billion (US$13.5 million), according to the Insurance Supervisory Authority under the Ministry of Finance.
Based on reports from all 32 non-life insurers and 19 life insurers, the six claims from loss of human life resulted in estimated insurance payments of VNĐ700 million.
Meanwhile, losses related to property and other non-life insurance coverage add up to more than VNĐ356.5 billion in estimated damages.
Storm No 10, also known as Typhoon Bualoi, caused severe damage in many provinces and cities after hitting northern and central provinces earlier this week.
Of the insurance payment figures, one claim on health insurance resulted in a payout of VNĐ200 million, while 591 claims on technical property insurance added up to over VNĐ315.6 billion. Motor vehicle insurance accounts for 1,680 cases, with estimated losses of VNĐ38.3 billion.
Other insurance claims, including marine hull insurance and agricultural insurance, involved 10 cases with estimated damages of VNĐ2.6 billion.
Altogether, initial payouts by insurers for human and property losses caused by Typhoon Bualoi amount to VNĐ357.2 billion.
“The reports from insurance companies show that most of the losses so far are concentrated in technical property insurance and motor vehicle insurance. Insurers are continuing to receive and process claims,” the Insurance Supervisory Authority said. — VNS
