To complete legislative documents on the deployment of specific insurance products in Vietnam

To complete legislative documents on the deployment of specific insurance products in Vietnam (Internet image)

The Ministry of Finance of Vietnam issued Decision 808/QD-BTC dated April 17, 2023 approving the Action Program of the Ministry of Finance to implement the strategy of developing Vietnam's insurance market until 2030.

Completing legislative documents on the deployment of specific insurance products in Vietnam

The Ministry of Finance of Vietnam has assigned the tasks to be implemented in completing the legal system on insurance business as follows:

- Detailed guidance on risk-based capital, risk management, internal control, and intervention measures for insurers

- Reviewing and finalizing legal documents on the deployment of specific insurance products, insurance products with social security impacts, investment promotion and socio-economic development, linking commercial health insurance and social health insurance,...

- Detailed instructions on types of insurance certificates, insurance agent certificates, insurance brokerage certificates, and insurance auxiliary certificates.

- Continuing to reform administrative procedures, creating favorable conditions and business opportunities for insurance enterprises.

- Guiding the collection and management of a common and synchronous database of information on the insurance market in order to serve the purposes of managing and monitoring insurance business activities.

Promoting the application of electronic contracts in insurance transactions in Vietnam

Implementation tasks for product development and diversification of insurance products are as follows:

- Encourage insurance enterprises to develop diversified new product lines, focusing on customers.

- Promote the development of products that are meaningful to the community and contribute to stabilizing social security, such as micro-insurance, health insurance, voluntary retirement insurance, green insurance,...

- Encourage innovation in the method of developing and designing insurance products associated with the industrial revolution; Insurance products are designed in the direction of personalizing the characteristics and needs of customers.

- Promote the application of electronic transactions, electronic signatures, and electronic contracts in insurance transactions, ensuring safety, security, and reliability.

Strengthening inspection, supervision, and administrative sanctions in the insurance sector in Vietnam

Specifically, in enhancing the effectiveness of state management and the effectiveness of inspection, examination, supervision, and administrative sanctions in the insurance sector, the Ministry of Finance requires:

- Transform to risk-based management and supervision through checking capital adequacy norms, classifying and managing risks, assessing enterprises, and updating and perfecting the monitoring and early warning system.

- Develop and issue a manual on risk-based insurance management and supervision in which business profiles are developed and businesses are classified based on risks and criteria for applying interventions. (if any); develop and issue a handbook on supervision and inspection of insurance enterprises.

- Strengthen the role and responsibility of the Ministry of Finance in managing, supervising, inspecting, examining, and strictly handling cases of law violations to deter and increase the compliance of enterprises.

Strengthen cooperation, exchange of information, and coordination with other relevant regulatory agencies in the development of new insurance products, new business methods and management, supervision, inspection, and inspection of insurance enterprises and reinsurance enterprises.

Promote cooperation with foreign regulatory agencies in the management and supervision of insurance businesses and reinsurance businesses, the prevention of money laundering, and terrorist financing, especially in the management and supervision of cross-border insurance services and multinational business activities of insurance enterprises and reinsurance enterprises.

- Enhance transparency of management and supervision activities of regulatory agencies with the insurance market, which promotes the disclosure of the regulator's annual supervisory management activities, similar to other insurance regulators around the world.

Decision 808/QD-BTC takes effect from the date of signing and promulgation.

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