What is an ancillary insurance service? What are the conditions for providing ancillary insurance service in Vietnam?
Vietnam: What is an ancillary insurance service?
According to Clause 7 Article 4 of the Law on Insurance Business 2022, ancillary insurance service covers a range of activities, such as insurance consulting, underwriting, actuary, loss assessment, and facilitation for settlement of insurance claims.
Ancillary insurance service does not comprise any service that an insurer, a reinsurer, a foreign insurance branch in Vietnam or a mutual providing microinsurance product renders on their own account to do their insurance or reinsurance business.
What is an ancillary insurance service? What are the conditions for providing ancillary insurance service in Vietnam?
What are the conditions for providing ancillary insurance service in Vietnam?
Pursuant to Clauses 1 and 2, Article 143 of the Law on Insurance Business 2022, the conditions of insurance ancillary services are as follows:
For person:
A person providing consulting services must meet the following conditions:
- He/she has full civil capacity;
- He/she holds at least an undergraduate decree on the insurance major. If not, he/she must hold at least an undergraduate degree on any other major and must complete the practicing certificate in the insurance ancillary service, including the consulting activity, issued by legally-licensed domestic or foreign training institutions.
For entities:
An entity providing insurance ancillary services must meet the following conditions:
- They must have legal personality; be legally permitted or licensed for their establishment and operation;
- Their staff members directly involved in insurance ancillary services must have full civil capacity; must hold certificate or qualification of insurance ancillary service relevant to specific types of insurance ancillary service awarded by legally-licensed domestic or foreign training institutions;
- Their staff members directly involved in loss assessment services must meet the conditions prescribed in point b of this clause and other credentials as assessors in accordance with law on commerce;
- Their staff members directly involved in actuarial services must meet the conditions prescribed in point b of this clause and other credentials as actuaries.
Which entities and persons provide insurance ancillary services in Vietnam?
Subjects providing insurance ancillary services specified in Article 140 of the Law on Insurance Business 2022 include:
- Insurance companies and branches of foreign non-life insurance companies can provide insurance ancillary services for insurance companies, reinsurance companies, foreign branches in Vietnam, insurance brokerage companies or mutuals providing microinsurance products.
- Insurance brokerage companies can provide insurance ancillary services for insurance companies, reinsurance companies, foreign branches in Vietnam, insurance brokerage companies, mutuals providing microinsurance products, other entities or persons.
- Other entities having legal personality can provide insurance ancillary services for insurance companies, reinsurance companies, foreign branches in Vietnam, insurance brokerage companies or mutuals providing microinsurance products.
- Persons can provide consulting services for insurance companies, reinsurance companies, foreign branches in Vietnam, insurance brokerage companies or mutuals providing microinsurance products.
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