Vietnam’s Ministry of Finance (MoF) is proposing updates to the Law on Insurance Business as part of its efforts to modernize the sector. These draft amendments are now open for public feedback, as reported by Viet Nam News.
The MoF said the 2022 law helped strengthen the insurance sector but has since shown several gaps. Growth between 2022 and 2025 has slowed to around 10% – and the ministry believes complicated procedures and overlapping rules have made it harder for insurers to expand and develop new products.
The proposed changes would simplify licensing and operating requirements for insurance companies, revise standards for managers, and ease rules for investing abroad and opening brokerage businesses. The draft also includes simpler registration steps for separating capital and premium funds in non-life and reinsurance companies.
The proposed changes would simplify licensing and operating requirements for insurance companies, revise standards for managers, and ease rules for investing abroad and opening brokerage businesses. The draft also includes simpler registration steps for separating capital and premium funds in non-life and reinsurance companies.
Another key proposal is to clarify what agents can sell. Under the draft, life insurance agents could sell non-life products but not those of another life insurer, while non-life agents would have similar restrictions. The MoF said this aims to ensure transparency and reduce conflicts within companies that operate both life and non-life insurance divisions.
The Vietnam Insurance Association is also preparing a new code of conduct for life insurance agency managers to promote consistent and fair practices across the market.
In a separate report noted by Viet Nam News, the Insurance Supervisory Authority under the MoF said insurers have recorded more than VNĐ357 billion (US$13.5 million) in estimated payouts related to Typhoon Bualoi, which struck northern and central provinces earlier this week.
As of Oct. 2, there were six claims involving deaths and 2,281 non-life insurance claims. Most were tied to technical property insurance, which made up over VNĐ315 billion of the total. Motor vehicle insurance accounted for 1,680 cases worth VNĐ38.3 billion, while marine, agricultural, and health insurance made up smaller portions.
“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.
