Vietnam’s National Assembly has approved amendments to the Law on Insurance Business that shift the regulatory approach for the re/insurance sector from ex-ante control to risk-based supervision, according to analysis from Hanoi Re.
The changes come as Vietnam’s re/insurance market moves through a restructuring phase aimed at improving governance and aligning more closely with international supervisory practices.
Hanoi Re noted that the revised framework is intended to streamline investment and business conditions, cut administrative procedures and recalibrate how authorities oversee re/insurers and other market participants.
The amendments follow concerns from the Ministry of Finance that re/insurance market growth between 2022 and 2025 slowed to around 10%, with complex procedures and overlapping rules seen as barriers to expansion and product innovation.
Regulators have framed the latest changes as part of a broader effort to close gaps that emerged after the 2022 law and to modernize the legal framework so supervision is more predictable and risk-based for both domestic and foreign re/insurers.
A key feature of the amendments is the removal or simplification of multiple ex-ante requirements that previously required prior approval from the Ministry of Finance. Many of these controls are being replaced by a regime that places greater responsibility on enterprises themselves, supported by ex-post supervision, in line with policies to improve the business environment and lower compliance costs.
The revised law also standardizes conditions for market entry and participation, particularly for foreign investors. The requirement for written confirmation from foreign supervisory authorities that an entity has not committed serious violations of re/insurance law has been abolished, a change expected to reduce friction in cross-border investment and cooperation.
Conditions for managers, controllers and other key professional roles have been adjusted toward more flexible criteria that reflect the current re/insurance labor market in Vietnam. At the same time, the framework retains expectations around professional competence and ethical conduct for individuals in these positions.
On the operational side, the law reaffirms that re/insurance enterprises can independently design and deploy products, provided they ensure transparency, adequacy and financial soundness. For some lines, particularly in non-life re/insurance, the approval process for premium calculation methods and bases is being replaced by a notification mechanism, allowing faster adjustments to market conditions.
The amendments also refine rules on organizational structure and internal governance. Definitions related to branches, representative offices and business locations are clarified to support network expansion, while some restrictions on concurrent managerial positions are eased, which may benefit re/insurers with lean operating models.
A central element of the reform is the roadmap for adopting a risk-based capital (RBC) regime. Re/insurers will be allowed to apply both the existing capital model and RBC in parallel through the end of 2030, with full transition to RBC required from 2031 onward.
The Law amending and supplementing certain provisions of the Law on Insurance Business will take effect Jan. 1, 2026. Provisions related to re/insurance auxiliary services will come into force on July 1, 2026, in line with the amended Law on Investment.
Hanoi Re said the new legislation is expected to strengthen the legal foundation for Vietnam’s re/insurance market, support more transparent and risk-based supervision, and create conditions for re/insurers, including Hanoi Re, to adjust governance practices and capital management as the regulatory shift takes effect.
