New Text Notification

New regulations of Vietnam on guidelines on the organization of risk management of insurers

Trần Thanh Rin

13:53, 05/12/2022

On November 16, 2022, the Minister of Finance of Vietnam promulgated Circular No. 70/2022/TT-BTC on risk management, internal control, and internal audit of insurers and reinsurers, and foreign branches.

The Circular provides guidelines on the organization of risk management of insurers.

Specifically, insurers, reinsurers, and foreign branches shall organize the risk management with 3 independent protection lines as follows:

- First protection line: Professional departments that directly identify, receive, assess, control, report, and monitor risks generated from business operations;

- Second protection line: Risk management department, compliance control department, and other departments with risk control functions regarding operations of the first protection line.

- Third protection line: Department of internal audit.

+ Risk management means identifying, measuring, monitoring, and controlling risks in the operations of insurers, reinsurers, and foreign branches.

See more details in Circular No. 70/2022/TT-BTC, which comes into force as of January 1, 2023.

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