What conditions must be met if an insurance company in Vietnam wishes to expand in terms of content, scope and duration of operation?
- What conditions must be met if an insurance company in Vietnam wishes to expand in terms of content, scope and duration of operation?
- What is the application for expansion of content, scope and duration of operation for an insurance company in Vietnam?
- What are the documents required by insurance companies in case of expansion of operation contents to deploy investment-linked insurance business?
What conditions must be met if an insurance company in Vietnam wishes to expand in terms of content, scope and duration of operation?
The change in the content and scope of activities is specified in Article 21 of Decree No. 46/2023/ND-CP as follows:
- Insurance companies, reinsurance companies, foreign branches in Vietnam that want to expand the operation contents, scope and duration specified in the License for establishment and operation must satisfy the following conditions:
+ Meet solvency regulations.
+ Not be sanctioned for administrative violations in the field of insurance business within 12 months from the time of submitting the application to expand the scope of activities.
+ In case the contents are expanded to deploy insurance products in the investment-linked insurance and retirement insurance business, in addition to the conditions specified at Points a and b, Clause 1, Article 21 of Decree No. 46/2023/ND-CP, life insurance companies must also satisfy the following conditions:
In case of implementing investment-linked insurance: Having a solvency margin higher than the minimum solvency margin of VND 200 billion.
In case of implementing pension insurance: Having a solvency margin higher than the minimum solvency margin of VND 300 billion.
Having an information technology system that meets the implementation requirements of each operation as prescribed in Clause 2, Article 97 of Decree No. 46/2023/ND-CP.
+ In the case of expanding the contents to deploy unit-linked insurance products in the investment-linked insurance business, the insurance company must be able to value assets and units of the associated funds. objectively, accurately periodically at least once a week and publicly announce to the insurance buyer the buying and selling prices of the fund units; establish an Investment Council, use a fund management company and a custodian bank to meet the provisions of Articles 100, 112 and 113 of Decree No. 46/2023/ND-CP.
What conditions must be met if an insurance company in Vietnam wishes to expand in terms of content, scope and duration of operation?
What is the application for expansion of content, scope and duration of operation for an insurance company in Vietnam?
In Clause 3, Article 21 of Decree No. 46/2023/ND-CP, the application for expansion of content, scope and duration of operation includes:
- A written request for expansion of the content, scope and duration of operation, made according to the form specified in Appendix III issued together with Decree No. 46/2023/ND-CP.
- A document issued by a competent authority as prescribed in the company's charter (for insurance companies, reinsurance companies) or Regulations on organization and operation (for foreign branches in Vietnam) on the expansion of content, scope and duration of activities.
- Documents proving that the company or branch satisfies the conditions specified in Clause 1, Article 21 of Decree No. 46/2023/ND-CP, except for documents specified at Point b, Clause 1, Article 21 of Decree No. 46/2023/ND-CP.
- In case of expanding the scope of activities to carry out investment-linked insurance and retirement insurance, apart from the documents specified at Points a, b and c of this Clause, the insurance company must provide add documents in Clauses 4 and 5, Article 21 of Decree No. 46/2023/ND-CP.
What are the documents required by insurance companies in case of expansion of operation contents to deploy investment-linked insurance business?
In Clause 4, Article 21 of Decree No. 46/2023/ND-CP, insurance companies are required to provide documents in case of expansion of operation contents to deploy investment-linked insurance, in addition to the documents specified at Points a, b and c, Clause 3, Article 21 of Decree No. 46/2023/ND-CP, including the following documents:
- Summary of main contents of investment-linked insurance products to be deployed; investment policy of the investment-linked fund; method, basis of charging; product brochures; sales illustrative documents, insurance claim forms; insurance certificate form; analysis of the customer's insurance needs and other documents that the customer must declare and sign when buying insurance or when adjusting the insurance contract.
- Explain the material and technical basis to ensure the implementation of investment-linked insurance products, including: Information technology system; the accounting system, which contains a detailed description of the insurance company's handling plan for the investment-linked fund in the following cases: The customer requests to pay insurance money when there is an insurance event; the customer requests to terminate the insurance contract early; the customer requests to withdraw a part of the insurance premium, advance from the refund value, and mature the insurance policy; customers request to convert unit-linked funds; The unit-linked fund is misvalued in the case of the unit-linked insurance product being deployed and other cases specified in the rules and terms of the product to be deployed.
- The process of selecting, training and managing investment-linked insurance product distribution agents; content and training program for insurance agents on investment-linked insurance products; distribution channels and ways of managing agents to advise, introduce, offer for sale and arrange for the conclusion of investment-linked insurance products to ensure compliance with the law.
- In case of expanding the deployment of unit-linked insurance products in the investment-linked insurance business, the insurance company must provide the following additional documents:
List of unit-linked funds, investment policies that the insurance company plans to apply to the assets of each unit-linked fund; basis for allocation of premiums and expenses among unit-linked funds; valuation method of unit-linked fund units;
Diplomas proving that the qualifications, capacity and professional experience of members of the Investment Council satisfy the conditions specified in Article 112 of Decree No. 46/2023/ND-CP; documents proving that the fund management company meets the conditions specified in Article 100 of Decree No. 46/2023/ND-CP.
- A written commitment enclosed with a detailed explanation that the insurance company meets the conditions specified at Points c and d, Clause 1, Article 21 of Decree No. 46/2023/ND-CP.
In addition, in Clause 5, Article 21 of Decree No. 46/2023/ND-CP, insurance companies are also required to provide documents in case of expanding the scope of activities to carry out the retirement insurance business. In addition to the documents specified at Points a, b and c, Clause 3, Article 21 of Decree No. 46/2023/ND-CP, the insurance company shall provide the following documents:
- Summary of the main contents of the retirement insurance product to be deployed, including information on the product's target market and the expected insurance benefits; method, basis of charging; product brochures; sales illustrative documents, insurance claim forms; sample insurance certificate and other documents that customers must declare and sign when buying insurance or adjusting insurance contracts.
- Explain the material and technical basis to ensure the implementation of retirement insurance products, including: Information technology system; accounting system; the process of selecting, training and managing product distribution agents; content and training program for pension insurance agents.
- Details of the handling plan and documents provided to the insurance company's customers for the deployment of retirement insurance products in the following cases: The customer requests to pay insurance premiums when there is an insured event; dangerous; the customer requests the transfer of the retirement insurance account; maturity of the insurance contract and other cases as prescribed in the rules and terms.
- A written commitment enclosed with a detailed explanation that the insurance company meets the conditions specified at Point c, Clause 1, Article 21 of Decree No. 46/2023/ND-CP.
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