Vietnam: Who is allowed to provide insurance products and services online? What regulations must entities providing insurance services and products online comply with?
- What are the purposes of application of information technology in insurance industry in Vietnam?
- Who is allowed to provide insurance services and products online in Vietnam?
- What regulations must entities providing insurance services and products online comply with?
- What are the requirements concerning application of information technology in the insurance industry in Vietnam?
What are the purposes of application of information technology in insurance industry in Vietnam?
Pursuant to Clause 1, Article 12 of the 2022 Law on Insurance Business in Vietnam stipulating as follows:
Application of information technology in the insurance industry serves the following purposes:
- Improve insurance business performance, including building and design of insurance products, risk assessment, underwriting, conclusion of contracts, management of contracts, loss assessment, payment of insurance claims and coverage; business management and methods of providing insurance services and products;
- Modernize statistics and reporting methods; streamline administrative procedures and reduce administrative burdens; build information technology systems and databases in the insurance business to serve the purposes of management, supervision, analysis and forecast of insurance markets, and prevention or control of insurance frauds or scams.
Vietnam: Who is allowed to provide insurance products and services online? What regulations must entities providing insurance services and products online comply with?
Who is allowed to provide insurance services and products online in Vietnam?
Pursuant to Clause 1, Article 14 of the 2022 Law on Insurance Business in Vietnam stipulating as follows:
Provision of insurance services and products online in Vietnam
1. Entities and persons licensed or permitted to provide insurance services and products online, including:
a) Insurance companies, branches of foreign non-life insurance companies, mutuals providing microinsurance products;
b) Insurance agents;
c) Insurance brokerage companies.
Thus, the entities that are allowed to provide insurance services and products online include:
- Insurance companies, branches of foreign non-life insurance companies, mutuals providing microinsurance products;
- Insurance agent;
- Insurance brokerage companies.
What regulations must entities providing insurance services and products online comply with?
Pursuant to Clause 2, Article 14 of the 2022 Law on Insurance Business in Vietnam stipulating as follows:
Provision of insurance services and products online in Vietnam
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2. Entities and persons providing insurance services and products online shall be subject to the following regulations:
a) Insurance companies, branches of foreign non-life insurance companies, insurance brokerage companies and mutuals providing microinsurance products can, at their discretion, decide on the method of providing insurance products and services online;
b) Insurance agents can provide insurance services and products online only if these insurance services and products fall within the insurance agent contract scope;
c) Insurance companies, branches of foreign non-life insurance companies, insurance agents, insurance brokerage companies and mutuals providing microinsurance products providing insurance products and services online shall be responsible to policyholders if such provision of these insurance services and products prejudices legitimate rights and interests of policyholders;
d) Entities and persons entering into insurance contracts online shall be responsible for providing honest and accurate information as stipulated in Article 22 herein.
3. Minister of Finance shall elaborate on this Article.
Thus, entities providing insurance services and products online must comply with the above regulations.
What are the requirements concerning application of information technology in the insurance industry in Vietnam?
Pursuant to Article 13 of the 2022 Law on Insurance Business in Vietnam stipulating as follows:
Requirements concerning application of information technology in the insurance industry in Vietnam
Insurance companies, reinsurance companies, foreign branches in Vietnam and insurance brokerage companies shall, of their own accord, establish, maintain and operate information technology systems corresponding to the business scale and meeting the following minimum requirements:
1. Server systems, software and engineering solutions must be set in place to update, make statistics of, process and store information to meet insurance business management needs, and cybersecurity and information security requirements;
2. Information technology systems must be available for use to facilitate the management and control of risks that they may face and regulatory inspection or supervision by regulators;
3. Information technology solutions must be ready for use to provide against calamities and ensure that their insurance business is uninterrupted.
Thus, insurance companies, reinsurance companies, foreign branches in Vietnam and insurance brokerage companies shall, of their own accord, establish, maintain and operate information technology systems corresponding to the business scale and meeting the following minimum requirements:
- Server systems, software and engineering solutions must be set in place to update, make statistics of, process and store information to meet insurance business management needs, and cybersecurity and information security requirements;
- Information technology systems must be available for use to facilitate the management and control of risks that they may face and regulatory inspection or supervision by regulators;
- Information technology solutions must be ready for use to provide against calamities and ensure that their insurance business is uninterrupted.
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