Government regulates supply, use of cross-border insurance services
Government regulates supply, use of cross-border insurance services
The Government recently issued Decree 46/2023/ND-CP regulating the supply and use of cross-border insurance services in Viet Nam.
Customers are making transactions at the Bao Viet Insurance Company (Illustrative image). — VNA/VNS Photo |
According to regulations under the decree, those providing cross-border insurance and insurance brokerage services are foreign insurance and insurance brokerage enterprises with headquarters in countries or territories with which Viet Nam has signed international treaties on trade, including agreements on the supply of cross-border insurance services in Viet Nam.
Users of those services are foreign-invested economic organisations and foreigners working in Viet Nam.
The decree stipulates that in order to be allowed to provide cross-border services in Viet Nam, a foreign insurance or insurance brokerage company must have a licence from a state management agency in charge of foreign insurance where the firm is headquartered, and must provide proof that it has been operating legally for at least 10 years until the time it begins to provide cross-border insurance services in Viet Nam.
It also must have a document certifying that it has not violated legal regulations on insurance business and brokerage operations, and other legal regulations within three consecutive years preceding the year it begins providing cross-border insurance services in Viet Nam.
The regulations also require total assets of at least US$2 billion for a foreign insurance enterprise; and $100 million for a foreign brokerage firm in the fiscal year preceding the year of providing cross-border services in Viet Nam.
Foreign insurers have to be rated at least "BBB" by Standard & Poor's or Fitch, "B++" by A.M.Best, or "Baal" by Moody's, or have equivalent ratings in the previous fiscal year; and have gained profits in the three consecutive fiscal years preceding the year it begins to provide cross-border insurance services in Viet Nam.
Foreign insurance companies are required to provide cross-border insurance services in Viet Nam through an insurance brokerage company licensed and operating in Viet Nam, while foreign brokerage firms must provide brokerage services for foreign insurance firms or branches of foreign insurance firms licensed and operating in Viet Nam.
