What are the tasks of Actuaries of mutual microinsurance organizations in Vietnam?
What requirements and standards do Actuaries of microinsurance products in Vietnam need to meet?
Pursuant to the provisions of Clause 1, Article 25 of Decree No. 21/2023/ND-CP as follows:
Standards and requirements to be satisfied by Actuaries
1. In order to act as an Actuary of microinsurance products in Vietnam, a person must meet the following standards and requirements:
a) He/she is not facing criminal prosecution or has been convicted but has had his/her criminal records expunged as prescribed;
b) He/she is an associate of an actuarial association that is currently an official member of an international actuarial association or has at least 05 years of working experience in insurance sector and has evidence that he/she has passed at least 02 exams held by the actuarial association or society of UK, America, Australia or Canada, or has passed all subjects of a training program/course in actuarial science which has been recognized by one of the said actuarial associations or societies to have equivalent validity with their 02 exams.
After 05 years from the effective date of this Decree, an Actuary must become an associate of an actuarial association that is currently an official member of an international actuarial association.
Thus, in order to act as an Actuary of microinsurance products in Vietnam, a person must meet the following standards and requirements:
- He/she is not facing criminal prosecution or has been convicted but has had his/her criminal records expunged as prescribed;
- He/she is an associate of an actuarial association that is currently an official member of an international actuarial association
- Or has at least 05 years of working experience in insurance sector
- And has evidence that he/she has passed at least 02 exams held by the actuarial association or society of UK, America, Australia or Canada
- Or has passed all subjects of a training program/course in actuarial science which has been recognized by one of the said actuarial associations or societies to have equivalent validity with their 02 exams.
Note: After 05 years from May 5, 2023, an Actuary must become an associate of an actuarial association that is currently an official member of an international actuarial association.
What are the tasks of Actuaries of mutual microinsurance organizations in Vietnam?
How do mutual microinsurance organizations employ Actuaries of microinsurance products in Vietnam?
Pursuant to the provisions of Clause 2, Article 25 of Decree No. 21/2023/ND-CP as follows:
Standards and requirements to be satisfied by Actuaries
…
2. A mutual microinsurance organization may employ Actuaries of microinsurance products in the following forms:
a) Enter into an employment contract with the Actuary;
b) Enter into an outsourcing contract with another entity to perform tasks of an Actuary of microinsurance products as prescribed in Clause 3 of this Article. In this case, the mutual microinsurance organization shall still assume the sole and ultimate responsibility towards members participating in microinsurance.
According to the above regulations, a mutual microinsurance organization may employ Actuaries of microinsurance products in two forms:
- Enter into an employment contract with the Actuary;
- Enter into an outsourcing contract with another entity to perform tasks of an Actuary of microinsurance products according to the above provisions.
What are the tasks of Actuaries of mutual microinsurance organizations in Vietnam?
Pursuant to the provisions of Clause 3, Article 25 of Decree No. 21/2023/ND-CP stipulating as follows:
Standards and requirements to be satisfied by Actuaries
…
3. A mutual microinsurance organization shall employ Actuary(ies) that meet the standards and requirements set forth in Clause 1 of this Article to perform the following tasks:
a) Calculate insurance premiums; carry out annual assessment of difference between assumed premiums and actually received premiums of each microinsurance product, calculate and adjust premiums to be collected in the next year, and income distribution plan;
b) Calculate amounts contributed to technical reserves as prescribed by laws;
c) Submit quarterly and annual reports to the Management Board and General Director (Director) on current financial, investment and business status of the mutual microinsurance organization, indicating risks arising from and proposals of investment assets, investment term of each asset which must be in line with the responsibilities undertaken under an insurance contract;
d) Promptly submit written reports to the General Director (Director), the Management Board on any irregular issues that may adversely affect the financial health of the mutual microinsurance organization and propose appropriate remedial measures.
d) Assess reinsurance programs and contracts (if any) before they are submitted to the General Director (Director), the Management Board for approval;
e) Submit annual reports to the Ministry of Finance of Vietnam on his/her performance of tasks (using Form No. 11 in the Appendix enclosed herewith) within a maximum duration of 90 days from the end of the fiscal year;
g) Perform other tasks with the aim of ensuring financial safety of the mutual microinsurance organization.
Thus, the Actuaries of the mutual microinsurance organization must perform the tasks as specified above.
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