What are regulations on separate management of equity and insurance premiums, distribution of surpluses regarding insurance companies in Vietnam?

What are regulations on separate management of equity and insurance premiums, distribution of surpluses regarding insurance companies in Vietnam?

Pursuant to Article 101 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating separate management of equity and insurance premiums, distribution of surpluses regarding insurance companies in Vietnam as follows:

1. Insurance companies, reinsurance companies or foreign branches in Vietnam must register implementation principles with the Ministry of Finance and must carry out the process of separately managing, individually recording and tracking:

a) Equity, premiums and assets classified by specific types of capital;

b) Revenues, expenses and incomes arising from insurance business or investment of equity and premiums;

c) Premiums arising from insurance business activities performed inside and outside Vietnam; revenues, expenses, technical provisions and other relevant expenses arising from insurance business conducted inside and outside Vietnam.

2. Life insurance companies must separately manage, individually record and track assets, capital, revenues, expenses or incomes of dividend-paying life insurance contracts according to the methods approved by the Ministry of Finance.

3. The Government shall impose detailed regulations on documentation requirements, application procedures and processes for registration or approval referred to in clause 1 and 2 of this Article.

4. The Minister of Finance shall impose detailed regulations on separate management of equity and premiums, and principles of distribution of surpluses, with regard to dividend-paying life insurance contracts.

What are regulations on financial regimes of insurance companies in Vietnam?

Pursuant to Article 102 of the Law on Insurance Business in 2022 (takes effect from 01/01/2023) stipulating financial regimes of insurance companies in Vietnam as follows:

1. Financial regimes of insurance companies, reinsurance companies and foreign branches in Vietnam shall be subject to regulatory provisions of this Law and others of relevant law.

2. The Government shall impose detailed regulations on financial regimes of insurance companies, reinsurance companies and foreign branches in Vietnam.

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