Insurers in Vietnam required to publicly disclose audited financial reports?
Insurers in Vietnam required to publicly disclose financial reports
Based on Official Dispatch 1948/QLBH-PNT of 2022 from the Department of Insurance Management and Supervision, the following request has been sent to insurers and reinsurers:
According to reports from news agencies, some insurers have not fully disclosed their audited financial reports.
According to the provisions of Clause 1, Article 35 of Circular No. 50/2017/TT-BTC dated May 15, 2017, issued by the Ministry of Finance, providing guidelines for the implementation of Decree No. 73/2016/ND-CP dated July 1, 2016, of the Government of Vietnam detailing the implementation of the Law on insurer and the Law on Amendments and Supplements to Certain Articles of the Law on insurer: "Annually, insurers, foreign branches, ... must publicly disclose on their websites the entire audited financial report content of the business, ... along with the opinions of independent auditors."
The Department of Insurance Management and Supervision requests insurers, reinsurers, and foreign branches to review and publicly disclose financial reports in accordance with the law.
The Department of Insurance Management and Supervision informs insurers, reinsurers, and foreign branches to comply.
According to the above content, there have been reports about some insurers not fully disclosing audited financial reports recently.
Therefore, the Department of Insurance Management and Supervision has requested insurers, reinsurers, and foreign branches to review and publicly disclose their financial reports.
Insurers in Vietnam required to publicly disclose audited financial reports
What are the procedures for disclosure of financial reports of insurers in Vietnam?
Based on Clause 1, Article 35 of Circular 50/2017/TT-BTC the provisions are as follows:
Disclosure of information
Annually, insurers, foreign branches, and insurance brokerage companies must publicly disclose information as prescribed in Article 82 of Decree No. 73/2016/ND-CP and the following guidelines:
1. Information on financial status:
a) Publicly disclose on their websites the entire audited financial report content of the business or branch along with the opinions of the independent auditing organization;
b) Publicly disclose in daily newspapers for three consecutive issues the following information: Annual Report (Form No. 1-CBTT) and Summary Financial Report (Form No. 2-CBTT). The disclosure must include the opinions of the independent auditing organization;
c) Besides the disclosure forms prescribed in point a and point b of this clause, insurers, foreign branches, and insurance brokerage companies can decide to disclose information in print publications; notify in writing to state management agencies; hold press conferences; or broadcast on central and local radio and television;
d) The disclosure of information as prescribed in point a and point b of this clause must be completed within 120 days from the end of the financial year. Within 10 days of publicly disclosing information as prescribed in point b of this clause, insurers, foreign branches, and insurance brokerage companies must send original or copies of the publicly disclosed information to the Ministry of Finance;
đ) The disclosure of information must be prompt and accurate as prescribed by law. Any amendments to the disclosed information must follow the procedures prescribed in point a, point b, and point d of this clause with explanatory reasons;
e) Public companies must disclose information as prescribed by securities law and regulations in this Circular.
Insurers are responsible for annually publicly disclosing their audited financial reports.
The disclosure of financial reports is made on the insurers' websites and publicly in newspapers.
Do insurers in Vietnam have to disclose information about insurance products?
Based on Clause 2, Article 35 of Circular 50/2017/TT-BTC the provisions are as follows:
Disclosure of information
Annually, insurers, foreign branches, and insurance brokerage companies must publicly disclose information as prescribed in Article 82 of Decree No. 73/2016/ND-CP and the following guidelines:
...
2. Information on insurance products:
Within the first 15 days of each month, insurers and foreign branches must disclose the insurance products permitted for the preceding month (if any) including: Rules, terms, insurance fee schedules, insurance application form samples, and related documents during the process of entering into and executing insurance contracts on the portals of the Ministry of Finance, the Vietnam Insurance Association, and the insurers' and foreign branches' websites.
Therefore, insurers must publicly disclose information about insurance products within the first 15 days of each month.
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