Cooperation, Competition, and Bidding in Insurance Business

To be specific, according to Clause 5, Article 1 of the Law on Insurance Business (Amended) 2010, which amends and supplements Article 10 of the Law on Insurance Business 2000, the issues of cooperation, competition, and bidding in insurance business are stipulated as follows:

1. Insurance enterprises and insurance brokerage enterprises are permitted to cooperate in reinsurance, co-insurance, loss assessment, resolution of insurance benefits, prevention and restriction of loss, human resource development, insurance product development, training and management of insurance agents, and sharing information for risk management.

2. Insurance enterprises are allowed to compete based on conditions, scope, liability levels, fees, service quality, insurance capacity, and financial capacity.

Competition must comply with legal regulations on competition and ensure the financial safety of insurance enterprises; insurance premiums must match the conditions, scope, and liability levels of insurance coverage.

3. Projects utilizing state capital, state-owned property, or property of state enterprises must conduct bidding concerning conditions, scope, liability levels, fees, service quality, insurance capacity, and financial capacity of insurance enterprises.

Bidding must ensure transparency in accordance with this Law and the law on bidding.

4. The following acts are strictly prohibited:

- Collusion between insurance enterprises or between insurance enterprises and insurance buyers to divide the insurance market and monopolize insurance services;- Unlawful interference in the selection of insurance enterprises;- Abuse of position, authority to designate, request, coerce, or obstruct organizations or individuals from participating in insurance;- Providing false information or advertising about the contents, scope of activities, and insurance conditions, thereby harming the legal rights and interests of insurance buyers;- Poaching customers by obstructing, luring, bribing, or threatening employees or customers of other insurance enterprises, insurance agents, or insurance brokerage enterprises;- Engaging in illegal promotions;- Other unlawful acts in cooperation, competition, and bidding.

See more: Law on Insurance Business (Amended) 2010 effective July 01, 2011.

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