Vietnam: Amending and supplementing penalties for violations against regulations on actuaries

Decree No. 48/2018/NĐ-CP of Vietnam’s Government amends and supplements the penalties for violations against regulations on actuaries (Appointed Actuary), and actuaries in charge of professional reserve and solvency. To be specific:

A fine of from VND 30,000,000 to VND 40,000,000 shall be imposed for life insurer actuary’s failure to comply with law in conducting one of following tasks:

- Calculating insurance premium of insurance products and formulating principles, terms and conditions of insurance products, or certifying insurance premium;

- Assessing the difference between the presumptive and actual costs of each product annually;

- Assessing reinsurance program, reinsurance contracts before submit them to General Director, Board of Directors (Board of members, President) for approval;

- Reporting on significant cases that possibly prejudice the solvency ratio of the insurer to the Ministry of Finance directly.

A fine of from VND 30,000,000 to VND 40,000,000 shall be imposed for failure of reserving actuary of non-life insurer, reinsurer, or foreign branch to comply with law in conducting one of following tasks:

- Calculating insurance premium and formulating principles, terms and conditions of insurance or reinsurance products, or certifying insurance premium;

- Evaluating payment of indemnities;

- Assessing reinsurance program, reinsurance contracts before submit them to General Director, Board of Directors (Board of members, President) for approval;

- Reporting on significant cases that possibly prejudice the solvency ratio of the insurer to the Ministry of Finance directly.

A fine of from VND 90,000,000 to VND 100,000,000 shall be imposed for failure of appointed actuary of life insurer or health insurer to comply with law in conducting one of following tasks:

- Calculating to build up professional insurance reserve;

- Separating funds and distributing annual surplus of policyholder fund.

- Assessing solvency ratio of life insurer or health insurer monthly, certifying it to solvency ratio report and sending it to the Ministry of Finance.

A fine of from VND 90,000,000 to VND 100.000.000 shall be imposed for failure of reserving actuary of non-life insurer, reinsurer, or foreign branch to comply with law in conducting one of following tasks:

- Calculating to build up professional insurance reserve;

- Separating the owner’s equity and insurance premium as per the law;

- Assessing solvency ratio of non-life insurer or health reinsurer quarterly, certifying it to solvency ratio report and sending it to the Ministry of Finance.

View relevant provisions at Decree No. 48/2018/NĐ-CP of Vietnam’s Government, effective from May 10, 2018.

-Thao Uyen-

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