What are the conditions for insurance agents being credit institutions in Vietnam? What are the conditions for insurance agents being other organizations?
What are the conditions for insurance agents being credit institutions in Vietnam?
Pursuant to the provisions of Article 62 of Decree 46/2023/ND-CP on conditions for an organization to operate an insurance agency, it is mentioned as follows:
Insurance agents being credit institutions and foreign bank branches must satisfy the requirements:
(1) A specialized department must be established to carry out insurance agent activities;
(2) The head of the department specialized in performing insurance agent activities must have at least 3 years of working experience in finance, banking, or insurance, and have at least a bachelor’s degree in insurance. If he/she fails to have at least a bachelor’s degree in insurance, he/she must have at least a bachelor’s degree in other major and an insurance certificate according to regulations of the Ministry of Finance;
(3) Each branch of a credit institution that conducts insurance agent activities must have at least 3 employees who are trained and have insurance agent certificates suitable to the type of insurance that the credit institution acts as an agent. Each transaction office of a credit institution that conducts insurance agent activities must have at least one employee who is trained and has an insurance agent certificate suitable to the type of insurance that the credit institution acts as an agent;
(4) Have an appropriate information technology system which provides complete, accurate and up-to-date information related to insurance policies through insurance agents;
(5) There is a process to supervise and control the quality of the performance of insurance agent activities by the employees in the agent.
The quality control and supervision process must ensure that the agent’s staff who directly perform agent activities strictly comply with the principles of agent operation and the authorization details in the agent contract and relevant laws; insurers and foreign branches in Vietnam are enabled to inspect and supervise performance of the agent’s staff and their violations.
(6) Each branch, transaction office of the credit institution or foreign bank branch must set up a separate transaction counter (or separate transaction desk) to carry out insurance agent activities, separate from transaction areas of the credit institution or foreign bank branch.
What are the conditions for insurance agents being credit institutions in Vietnam? What are the conditions for insurance agents being other organizations?
What are the conditions for insurance agents being other organizations in Vietnam?
According to the provisions of Clause 2, Article 62 of Decree 46/2023/ND-CP, insurance agents being other organizations must meet the following conditions:
(1) The organization must have at least three employees who directly perform insurance agent activities;
(2) There is a process in place to supervise if their employees comply with the principles of insurance agent activities in accordance with the Law on Insurance Business.
In addition, an insurance agent must maintain their compliance with the requirements for insurance agent operation throughout their operation.
In case one of the requirements is not satisfied, such organization may not conduct insurance agent activities until all the requirements are satisfied and must notify the insurer, or branch of foreign non-life insurer, or mutual providing microinsurance products within 5 working days from the date of their failure to meet the requirements for insurance agent activities.
After 6 months from the date of notification, if such organization still fails to satisfy the requirements for operating insurance agent as prescribed, the insurer, or branch of foreign non-life insurer, or mutual providing microinsurance products must terminate the insurance agent contract.
- Organizations conducting insurance agency activities must meet the new conditions within 01 year from July 1, 2023.
Thus, the deadline is for organizations operating insurance agencies (including credit institutions and organizations other than credit institutions) to consolidate their apparatus, improve the quality of human resources and consulting processes that meets the above conditions is July 1, 2024.
Vietnam: When will the Decree 46/2023/ND-CP take effect?
Pursuant to Article 122 of Decree 46/2023/ND-CP, there are provisions as follows:
Entry in force
1. This Decree comes into force as of the date of signing, except for the cases specified in Clause 2 of this Article.
2. Article 33, the articles specified in Section 6, Chapter II, Articles 81, 82, 83, Clauses 1, 2, 3, 4, 5 and 6, Article 93 of this Decree take effect from January 1, 2023.
3. In case an insurer, reinsurer, or foreign branch in Vietnam has invested in corporate bonds of an issuing enterprise before January 1, 2023 with the purpose of restructuring the debts of that issuing enterprise, the extension of this investment is not allowed.
Accordingly, Decree 46/2023/ND-CP takes effect from July 1, 2023.
For Article 33, the provisions in Section 6 Chapter II, Articles 81, 82, 83, Clauses 1, 2, 3, 4, 5 and 6, Article 93 of Decree 46/2023/ND-CP are effective. enforcement from January 1, 2023.
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