In an attempt to modernize the insurance industry, Vietnam's Ministry of Finance (MoF) is putting forward revisions to the Law on Insurance Business. According to Viet Nam News, the public can now comment on these draft amendments.
According to the MoF, the 2022 law strengthened the insurance industry, but it has since revealed a number of flaws. The ministry believes that confusing processes and conflicting regulations have made it more difficult for insurers to grow and create new products, which is why growth between 2022 and 2025 has slowed to about 10%.
The proposed changes would ease regulations for foreign investment and brokerage business opening, update standards for managers, and streamline licensing and operating requirements for insurance companies. Additionally, the draft includes streamlined registration procedures for non-life and reinsurance companies that want to separate their capital and premium funds.
Clarifying what agents can sell is another important suggestion. Under the draft, non-life agents would be subject to similar limitations as life insurance agents, who could sell non-life products but not those of another life insurer. According to the MoF, this is meant to guarantee openness and lessen disputes among businesses that run both life and non-life insurance businesses.
To encourage uniform and equitable practices throughout the market, the Vietnam Insurance Association is also creating a new code of conduct for managers of life insurance agencies.
According to a different report cited by Viet Nam News, the MoF's Insurance Supervisory Authority stated that insurers have recorded estimated payouts for Typhoon Bualoi, which hit the northern and central provinces earlier this week, of more than VNĐ357 billion (US$13.5 million).
There were 2,281 non-life insurance claims and six death-related claims as of October 2. Over VNĐ315 billion of the total was related to technical property insurance. Marine, agricultural, and health insurance comprised smaller amounts, while motor vehicle insurance accounted for 1,680 cases totaling VNĐ38.3 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, as quoted by Insurance Business News.
