Latest eligibility requirements and standards of managers and controllers of insurance companies in Vietnam

Latest eligibility requirements and standards of managers and controllers of insurance companies in Vietnam (Internet imag- 

Regarding this issue, LawNet would like to answer as follows:

1. Latest eligibility requirements and standards of managers and controllers of insurance companies in Vietnam

Eligibility requirements and standards of managers and controllers of insurance companies, reinsurance companies and foreign branches in Vietnam according to Article 81 of the Law on Insurance Business 2022 are as follows:

* General requirements and standards:

- Reserve the corporate governance rights prescribed in the Corporate Law;

- Not be subject to any penalty for administrative violations arising in the insurance industry; not be disciplined in the form of dismissal for any of their violations against internal regulatory procedures for handling work within 03 consecutive years before the appointment date; not be the object of the decisions on initiation of legal proceedings under the regulatory provisions of law at the election or appointment time.

* Specific requirements and standards of the Chairperson of the Managing Board, the Chairperson of the Board of Member; the Member of the Managing Board, the Member of the Board of Members:

- Satisfy the general requirements and standards specified in clause 1 of Article 81 of the Law on Insurance Business 2022;

- Hold at least an undergraduate degree;

- The Chairperson of the Managing Board or the Chairperson of the Board of Member must have at least 05 years' experience of directly working in the insurance, finance or banking sector, or at least 03 years' experience of holding the post as a manager, operations executive or controller at an enterprise in the insurance, finance or banking industry; the Member of the Managing Board or the Member of the Board of Members must acquire at least 03 years' experience of directly working in the insurance, finance or banking sector or at least 03 years' experience of holding the post as a manager, operations executive or controller at an enterprise in the insurance, finance or banking industry.

* Specific requirements and standards of the Director, General Director and Legal Representative:

- Satisfy the general requirements and standards specified in clause 1 of Article 81 of the Law on Insurance Business 2022;

- Hold at least an undergraduate degree in the insurance major. If not, he/she must hold at least an undergraduate degree in any other major and must complete the practicing certificate in the insurance industry conferred by an legally-licensed domestic or foreign insurance training institution;

- Have at least 05 years' experience of working in the insurance, finance or banking sector, including 03 years' experience of holding the post as a manager or controller of an insurance company, reinsurance company or foreign branch;

- Reside in Vietnam during his/her term in office.

* Specific requirements and standards of the managers other than those specified in clause 2 and 3 of this Article of an insurance company, reinsurance company or foreign branch in Vietnam:

- Satisfy the general conditions and standards specified in clause 1 of Article 81 of the Law on Insurance Business 2022;

- Hold at least an undergraduate decree on the insurance major. If not, he/she must hold at least an undergraduate degree in any other major and must complete the practicing certificate in the insurance services within the employing enterprise’s scope of business is issued by legally-licensed domestic or foreign insurance training institutions;

- Spend at least 03 years on working in the insurance, finance or banking sector or holding the post for which he/she is recommended in the past. In particular, the nominee for a head of an operations department must have at least 03 years' experience of working in the insurance, finance or banking sector or holding the post for which he/she is recommended;

- Reside in Vietnam during his/her term in office.

* Controllers of insurance companies, reinsurance companies or foreign branches in Vietnam are required to satisfy the general conditions and standards referred to in clause 1 of Article 81 of the Law on Insurance Business 2022 and others prescribed in the Government’s regulations.

* The Minister of Finance shall elaborate point b of clause 3 and point b of clause 4 of Article 81 of the Law on Insurance Business 2022, and impose detailed regulations regarding training curriculum or program, application requirements, procedures and processes for certification testing, issuance, revocation, withdrawal and reissuance of insurance practising certificates issued by legally-licensed domestic insurance training institutions.

2. Titles of manager of an insurance company or reinsurance company in Vietnam

According to Clause 1, Article 80 of the Law on Insurance Business 2022, a manager of an insurance company or reinsurance company can hold the following posts:

- Chairperson of the Managing Board, Member of the Managing Board; Chairperson of the Board of Members, Member of the Board of Members;

- Director or General Director, Vice Director or Deputy General Director, Legal Representative;

- Chief Accountant, Director of a branch, Head of a representative office, Head of an operations department and the like under the Company’s Charter.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE