ON AMENDMENTS TO DECREE NO. 46/2023/ND-CP DATED JULY 1, 2023 OF THE GOVERNMENT ON ELABORATION OF THE LAW ON INSURANCE BUSINESS

“This Decree provides elaboration of clause 2 Article 6, clause 2 Article 7, clause 5 Article 11, point b clause 1 and point a clause 2 Article 64, clause 3 Article 65, point dd clause 1 and point a clause 2 Article 67, clause 4 Article 71, clause 4 Article 74, clause 2 Article 77, clause 4 Article 81, clause 4 Article 83, clause 5 Article 87, clause 1 Article 89, clause 3 Article 93, clause 6 Article 94, clause 4 Article 97, clause 2 Article 98, point b clause 1 and clause 5 Article 99, clause 5 Article 100, clause 3 Article 101, clause 2 Article 102, clause 3 Article 115, point d clause 2 Article 125, point b clause 1 and point a clause 2 Article 133, Article 134, clause 4 Article 136, clause 1 and clause 3 Article 138, clause 1 Article 152, clause 3 Article 156, and point b clause 5 Article 157 of the Law on Insurance Business.”.

“b) The database on insurance business must be maintained in a continuous, stable, and smooth operation. It must show the history of information updates and revisions, and the information must be stored securely and ensure cybersecurity;”.

The connection of the database on insurance business with national databases and other specialized databases shall be carried out in accordance with the law on mandatory data connection and sharing among agencies within the political system.”.

“5. List of capital contributors, capital contribution amounts, and the following attached documents:”.

1. Point dd Clause 2 is amended as follows:

dd) Police (clearance) certificate, made according to the form or equivalent document of a foreigner prescribed by foreign law must be issued by a competent authority no later than 12 months before the date of application. The certificate must have full information on criminal convictions;”.

2. Clause 4 is amended as follows:

“4. Where documents on personal background and identity of Vietnamese citizens and other documents forming part of the application as prescribed in this Decree have been integrated into the National Population Database, the Citizen Identity Database and other databases, the Ministry of Finance shall perform data extraction and use information from the National Population Database, the Citizen Identity Database and other databases on the basis of information exchange and provision among regulatory agencies.”.

1. Organizations and individuals applying for the License for establishment and operation or submitting requests or notifications shall prepare applications in accordance with this Decree; submit them in person to the Ministry of Finance or send them by post or via the online public service system where eligible.

2. Within 30 days of receiving an incomplete or invalid application, the Ministry of Finance shall notify the applicant in writing to supplement or revise the application. The time limit for supplementation or revision of the investor’s application is 6 months from the date of notification. In case the investor fails to supplement or revise the application within the prescribed time limit, the Ministry of Finance will deny the application.

The time limit for the applicant to supplement or revise their application is 12 months from the date of the first notification by the Ministry of Finance. If the applicant fails to complete the application within the specified time limit, the Ministry of Finance has the discretion to deny the application.

3. Within 60 days of receiving a complete or valid application, the Ministry of Finance shall grant an Establishment and Operation License to the insurer, reinsurer, or foreign branch in Vietnam according to the Appendix II hereto appended. If the application is rejected, the Ministry of Finance shall provide an explanation in writing. The Ministry of Finance may only deny the application if the capital contributor or the insurer, reinsurer, or foreign branch to be established in Vietnam does not fully satisfy the requirements and/or application as prescribed in this Decree, or the documents therein are forged or falsified as specified in Clause 3, Article 15 of this Decree.

4. The time limit for settlement of administrative procedures shall be working days in accordance with the law on promulgation of legal normative documents. Where the time limit for settlement of administrative procedures is 30 working days or more, it shall be specified in days or months.”.

1. Clause 4 is amended as follows:

“4. In case of increase of charter capital by method of public offering of shares, offering and issuance of shares of listed and public joint-stock companies, after being approved in principle by the Ministry of Finance, the insurer or reinsurer shall issue shares in accordance with the law on securities.”.

2. Amendments to Point b Clause 5 as follows:

“b) The bank's certification that the shareholders or capital contributors have fully paid the additional capital to the insurer, reinsurer, or that the foreign non-life insurer or foreign reinsurer has provided sufficient additional capital to the foreign branch in Vietnam (in case of capital increase) into a blocked account; or a written notification of the Vietnam Securities Depository and Clearing Corporation in case of charter capital increase through public offering, issuance of shares, issuance of bonus shares, issuance of shares for dividend payment, issuance of shares to increase share capital from equity, or other supporting documents in accordance with the law;”.

“e) Written commitment of shareholders or capital contributors to meeting the conditions as prescribed in clause 1 of this Article.”.

1. An insurer, reinsurer, or foreign branch in Vietnam must obtain a prior approval from the Ministry of Finance before changing the following positions:

a) President of the Board of Directors (President of the Members' Council) of the insurer or reinsurer;

b) General Director (Director);

c) Appointed Actuary.

2. President of the Board of Directors (President of the Members' Council), General Director (Director), Appointed Actuary to be appointed must meet the requirements in Article 81 of the Law on Insurance Business, the Appointed Actuary must meet the requirements in Articles 29 and 30 of this Decree.

3. Application for change of positions specified in clause 1 hereof includes the following:

a) An application form for change specified in Appendix III to this Decree;

b) A competent authority's document as prescribed in the company's charter (for insurer or reinsurer) or Regulation on organization and operation (for foreign branch in Vietnam);

c) Police (clearance) certificates or equivalent of foreigners as prescribed by foreign law, a copy of the citizen identity card or identity card or passport; curriculum vitae, copies of documents evidencing working experience, duration of holding positions as manager or controller and satisfaction of the general conditions and standards prescribed in Article 81 of the Law on Insurance Business regarding not being subject to disciplinary action; copies of diplomas and certificates evidencing the professional qualifications and competence of the proposed appointee. These documents must satisfy the general standards for submission and supplementation of applications and documents as prescribed in clause 2 Article 15 of this Decree;

d) Written commitment of the person expected to be appointed as the General Director (Director) or Appointed Actuary that he/she will work for the insurer, reinsurer, or foreign branch in Vietnam and reside in Vietnam after being approved by the Ministry of Finance, and to satisfy the general conditions and standards prescribed in Article 81 of the Law on Insurance Business.

4. Within 7 working days of receiving a complete and valid application, the Ministry of Finance shall issue a written approval. If the application is rejected, the Ministry of Finance shall provide an explanation in writing.”.

1. Within 15 days of receiving the competent authority’s approval for opening, terminating, changing name, location of a branch or representative in Vietnam, the insurer or reinsurer must send a notice to the Ministry of Finance together with the following documents:

a) The competent authority’s approval for opening, terminating, changing name, location of a branch or representative in accordance with the company’s charter;

b) A report on responsibilities, arising issues, and action plan upon termination of branch or representative office. The insurer or reinsurer must undertake not to cause damage to current obligations to the State, interests of their policyholders and other related entities;

c) Documentation showing the right to use the location of the branch or representative office in case of opening or changing the location of the branch or representative office.

2. Within 7 working days of receiving the complete and valid application, the Ministry of Finance shall issue a certification of opening, termination or change of name, location of branch or representative office in Vietnam to the insurer or reinsurer, also send such a notice to the business registry.”.

“2. He/she obtains at least a bachelor's degree in insurance. If he/she does not obtain at least a bachelor’s degree in insurance, he must obtain at least a bachelor’s degree in economics, finance, banking, business administration, law, accounting, or auditing, which includes coursework in insurance; or a bachelor’s degree or higher in another major together with an insurance certificate issued by training institutions in insurance that are lawfully established and operating domestically or abroad.”.

“3. The Head of Compliance Supervisory Department must obtain at least a bachelor’s degree in insurance. If he/she does not obtain at least a bachelor’s degree in insurance, he must obtain at least a bachelor’s degree in economics, finance, banking, business administration, law, accounting, or auditing, which includes coursework in insurance; or a bachelor’s degree or higher in another major together with an insurance certificate issued by training institutions in insurance that are lawfully established and operating domestically or abroad.”.

“2. He/she is an Associate in an actuary association which is an official member of International Actuarial Association (IAA); or has at least 5 years of experience in non-life insurance and obtains proof that he/she has passed at least 2 exams of any of the following: The Institute and Faculty of Actuaries (IFoA) of UK, Society of Actuaries of America (SOA), the Institute of Actuaries of Australia, Canadian Institute of Actuaries, or obtains proof that he/she has passed exams in an actuarial training course which is acknowledged by any of above-mentioned associations that they are equivalent to the association’s 2 exams.

From July 1, 2026, the Appointed Actuary of a non-life insurer, reinsurer, or foreign branch in Vietnam must be at least an Associate of an actuary association which is an official member of International Actuarial Association (IAA) and does not break the code of ethics for actuarial services in insurance.

From July 1, 2028, the Appointed Actuary of a non-life insurer, reinsurer, or foreign branch in Vietnam must be a Fellow, who has been trained in non-life insurance of an actuary association which is an official member of International Actuarial Association (IAA) and does not break the code of ethics for actuarial services in insurance.”.

1. The title of Article 32 is amended as follows:

2. Clause 1 is amended as follows:

“1. An insurer and a foreign non-life insurance branch shall register and obtain approval from the Ministry of Finance for the methods and bases for calculating insurance premiums of insurance products under life insurance and health insurance lines before implementation.”.

3. Clauses 5a and 5b are added after Clause 5 as follows:

“5a. Application for notification of the methods and bases for calculating insurance premiums of insurance products under motor vehicle insurance lines, excluding compulsory motor third-party liability insurance:

a) Written notification of the methods and bases for calculating insurance premiums in accordance with the form specified in Appendix XX enclosed with this Decree;

b) Explanatory documents on the methods and bases for calculating insurance premiums in accordance with the form guided by the Minister of Finance.

5b. In case of changes to the methods and bases for calculating insurance premiums of insurance products under motor vehicle insurance lines, excluding compulsory motor third-party liability insurance, non-life insurers and foreign non-life insurance branches shall notify the Ministry of Finance using the application prescribed in clause 5a of this Article prior to implementation.”.

1. Point a Clause 2 is amended as follows:

“a) Non-life insurance business (except aviation insurance, satellite insurance) and health insurance, and term life insurance with a term of up to 1 year: VND 400 billion;”.

2. Clause 4 is amended as follows:

“a) Reinsurance business, outward reinsurance of non-life insurance or both non-life insurance and health insurance, and term life insurance with a term of up to 1 year: VND 500 billion;

b) Reinsurance business and outward reinsurance of life insurance or both life insurance and health insurance: VND 900 billion;

c) Reinsurance business and outward reinsurance of life insurance, non-life insurance, and health insurance: VND 1,400 billion.”.

1. Point a Clause 1 is amended as follows:

“a) Non-life insurance business (except for the cases specified at Points b and c of this Clause), health insurance, and term life insurance with a term of up to 1 year: VND 250 billion;”.

2. Clause 2 is amended as follows:

“a) Reinsurance business, outward reinsurance of non-life insurance or both non-life insurance and health insurance, and term life insurance with a term of up to 1 year: VND 400 billion;

b) Reinsurance business and outward reinsurance of life insurance or both life insurance and health insurance: VND 450 billion;

c) Reinsurance business and outward reinsurance of life insurance, non-life insurance, and health insurance: VND 700 billion.”.

“b) Documents explaining and illustrating the expected methods and basis for setting aside technical reserves, certified by Appointed Actuaries. Except for cases of changes to the technical interest rate in line with fluctuations in Government bond yields, for other changes to the methods and bases for establishing insurance technical reserves, the explanatory documents must demonstrate that the new methods and bases reflect more accurately and comprehensively than the previous methods and bases the liabilities of the insurer, reinsurer, and foreign branch in Vietnam.”.

1. Point a Clause 1 is amended as follows:

“a) Revenue from insurance business; reinsurance business and outward reinsurance (hereinafter collectively referred to as reinsurance): is the receivable amount in a period after deducting payables to reduce revenues arising in the period;”.

2. Amendments to point c clause 2:

“c) Reinsurance commissions earned and other income directly related to reinsurance;”.

3. Points e and g Clause 3 is amended as follows:

“e) Refund of reinsurance commissions;

g) Reduction of reinsurance commissions.”.

1. Point a Clause 1 is amended as follows:

“a) Expenditures on insurance and reinsurance business;”.

2. Clause 2 is amended as follows:

“2. Expenditures on insurance and reinsurance business: is the payable amount in a period after deducting revenues recorded as decreases in expenses arising in the period;”.

3. Clause 3 is amended as follows:

a) Add point a1 after point a as follows:

“a1) Reinsurance commissions and other expenses directly related to reinsurance;”;

b) Amendments to Point k as follows:

“k) Expenses for initial training and examinations for issuance of insurance agent certificates; expenses for advanced training for insurance agents; expenses for recruitment of insurance agents; expenses for management of individual insurance agents; expenses for inspection, supervision, and quality assessment of insurance agents;”;

c) Add point p after point o as follows:

“p) Support expenses and remuneration for employees or members of socio-political organizations, socio-professional organizations, and cooperatives authorized by the insurer or the foreign non-life insurance branch to provide advice and arrange the conclusion of microinsurance contracts for their own members in accordance with regulations of the Minister of Finance.”.

4. Amendments to Point d Clause 4 as follows:

“d) Establishment of insurance technical reserves in respect of the portion reinsured for non-life insurance and health insurance of non-life insurers, foreign branches in Vietnam, and reinsurers. For health insurance, non-life insurers, foreign branches in Vietnam, and reinsurers may only reduce expenses for the establishment of insurance technical reserves in respect of the portion reinsured with reinsurers having a minimum rating of “BBB” by Standard & Poor’s or Fitch, “B++” by A.M. Best, “Baa1” by Moody’s, or equivalent ratings issued by other rating organizations with functions and experience in rating, based on the most recent financial year prior to the time of conclusion of the reinsurance contract.”.

1. Life insurers shall register with the Ministry of Finance the principles for separation and allocation of assets, capital sources, revenue, and shared expenses related to both the owners’ equity fund and the policyholders’ fund prior to application. Non-life insurers and foreign non-life insurance branches shall notify the Ministry of Finance of the principles for separation and allocation of assets, capital sources, revenue, and shared expenses related to owners’ equity and insurance premium funds prior to implementation.

2. Application for registration, notification and change includes the following documents:

a) An application form for registration, notification or change specified in Appendix XI, Appendix XXI to this Decree;

b) Explanatory documents on expected principles of separation and allocation, certified by the Appointed Actuary of the insurer, reinsurer, or branch. In case of change, the application also includes a document explaining the change.

3. Within 30 working days of receiving a complete and valid application for registration or change of registration, the Ministry of Finance shall issue a written approval. If the application is rejected, the Ministry of Finance shall provide an explanation in writing.”.

Insurers, reinsurers, and foreign branches in Vietnam shall deduct 5% of their annual after-tax profits to establish a compulsory reserve fund. The maximum level of the required cash reserve fund is 10% of the charter capital of the insurer/reinsurer, the allocated capital of the branch.”.

“dd) After the transfer of shares or capital contributions, the insurance broker must comply with the provisions of Article 133 of the Law on Insurance Business.”.

1. The insurance broker must obtain written approval from the Ministry of Finance when appointing or removing the following positions:

a) President of the Board of Directors (President of the Members' Council);

b) General Director (Director).

2. Application for change of positions specified in clause 1 hereof includes the following:

a) An application form for change specified in Appendix III to this Decree;

b) A decision of a competent authority as prescribed in the company's charter;

c) Police (clearance) certificate or equivalent document of foreigners as prescribed by foreign law in accordance with point dd clause 2 Article 15 of this Decree; a copy of the citizen identity card or identity card or passport or other lawful personal identification documents; curriculum vitae meeting the requirements specified at point e clause 2 Article 15 of this Decree; copies of diplomas, certificates, and documents evidencing the qualifications, experience, and professional competence of the proposed Chairperson of the Board of Directors (Chairperson of the Members’ Council) and General Director (Director);

d) Expected employment contract between the insurance broker and the proposed General Director (Director);

dd) Written undertaking of the proposed General Director (Director) to work for the insurance broker after being approved by the Ministry of Finance;

e) The application for change of the President of the Board of Directors (President of the Members’ Council) and the General Director (Director) must satisfy the requirements specified at points a, b, d, and h clause 2, clause 3, and clause 4 Article 15 of this Decree;

g) Written undertaking and documents evidencing satisfaction of the general conditions prescribed in Article 76 of this Decree.

3. Within 7 working days of receiving a complete and valid application, the Ministry of Finance shall issue a written approval. If the application is rejected, the Ministry of Finance shall provide an explanation in writing.”.

“4. They have at least 5 years’ working experience in at least one field of insurance, finance, or banking, of which at least 3 years’ experience as the manager or controller of an organization directly operating in the fields of insurance, finance, or banking.”.

“1. Foreign organizations providing cross-border insurance services in Vietnam shall provide insurers, foreign branches in Vietnam, and insurance brokers licensed in Vietnam that participate in the provision of cross-border insurance services in accordance with Article 88 of this Decree with documents evidencing satisfaction of the conditions for provision of cross-border insurance services as prescribed in Article 86 of this Decree.”.

Insurers, foreign branches in Vietnam, insurance brokers licensed in Vietnam, and insurance auxiliary service providers participating in the provision of cross-border insurance services in accordance with Article 88 of this Decree shall have the following responsibilities:

1. Retain documents evidencing that the providers of cross-border insurance services in Vietnam with which they participate in providing insurance satisfy the conditions prescribed in Article 86 of this Decree.

2. Quarterly, report to the Ministry of Finance on the provision of cross-border insurance services, the use and provision of cross-border auxiliary insurance services performed during the period in Vietnam within 30 days from the end of the quarter. The reporting form shall be prescribed by the Minister of Finance.”.

Inspection and specialized inspection of insurance business activities of foreign branches in Vietnam shall be carried out as follows:

1. The Ministry of Finance of Vietnam shall conduct specialized inspection of the operations of foreign branches in Vietnam in accordance with the law.

2. The foreign insurance supervisory authority of the country where the enterprise is headquartered shall conduct inspection of the operations of foreign branches in Vietnam as follows:

a) Before conducting inspection, the foreign insurance supervisory authority of the country where the enterprise is headquartered shall notify the inspection plan to the Ministry of Finance;

b) After completing the inspection, the foreign insurance supervisory authority of the country where the enterprise is headquartered shall provide the inspection results to the Ministry of Finance.”.

“a) Risk insurance benefits include death benefits and may include total and permanent disability benefits;”.

“a) Decree No. 73/2016/ND-CP, dated July 01, 2016, of the Government on elaboration of the Law on Insurance Business and the Law on amendments to the Law on Insurance Business, except for Articles 10, 61, 62, 63, 64, 65, 66, and 67. Articles 10, 61, and 62 of Decree No. 73/2016/ND-CP remain effective until the end of December 31, 2027. Articles 63, 64, 65, 66, and 67 of Decree No. 73/2016/ND-CP remain effective until the end of December 31, 2030;”.

1. Replace the phrase “identity card” with “citizen identity card” in clause 4 and point d clause 5 Article 12, clause 4, point a clause 5 and point d clause 6 Article 13, clause 4 and point d clause 5 Article 14, point a clause 2 Article 15, point d clause 1 Article 56, point d clause 2 Article 59, clause 4, point d clause 5 and point a clause 8 Article 64, point b clause 6 Article 96.

2. Replace the phrase “identity card number or citizen identity card number” with “personal identification number” in clause 6 Article 12 and clause 8 Article 13.

3. Annul clause 1 Article 26, clause 1 Article 27, clause 1 Article 28, clause 1 Article 29, and clause 1 Article 30.

4. Annul Articles 84 and 87.

5. Replace Appendices I to XIX issued together with Decree No. 46/2023/ND-CP with Appendices I to XIX issued together with this Decree.

6. Add Appendices XX and XXI enclosed with this Decree.

1. This Decree comes into force as of the date of its signing, except as provided in clause 2 of this Article.

2. Articles 25, 26, and clause 4 Article 31 of this Decree come into force as of July 01, 2026.