Latest licensing conditions of insurance ancillary services in Vietnam

Latest licensing conditions of insurance ancillary services in Vietnam (Internet image)

Regarding this issue, LawNet answers as follows:

1. Latest licensing conditions of insurance ancillary services in Vietnam

Licensing conditions of insurance ancillary services according to Article 143 of the Law on Insurance Business 2022 are as follows:

- In order to be licensed to render insurance ancillary services, a person providing consulting services must meet the following conditions:

+ He/she has full civil capacity;

+ He/she holds at least an undergraduate decree on the insurance major. If not, he/she must hold at least an undergraduate degree on any other major and must complete the practicing certificate in the insurance ancillary service, including the consulting activity, issued by legally-licensed domestic or foreign training institutions.

- In order to be licensed to render insurance ancillary services, an entity providing insurance ancillary services must meet the following conditions:

+ They must have legal personality; be legally permitted or licensed for their establishment and operation;

+ Their staff members directly involved in insurance ancillary services must have full civil capacity; must hold certificate or qualification of insurance ancillary service relevant to specific types of insurance ancillary service awarded by legally-licensed domestic or foreign training institutions;

+ Their staff members directly involved in loss assessment services must meet the conditions prescribed in point b of clause 2 of Article 143 of the Law on Insurance Business 2022 and other credentials as assessors in accordance with law on commerce;

+ Their staff members directly involved in actuarial services must meet the conditions prescribed in point b of clause 2 of Article 143 of the Law on Insurance Business 2022 and other credentials as actuaries.

2. Responsibilities of entities and persons providing insurance ancillary services in Vietnam

Responsibilities of entities and persons providing insurance ancillary services in Vietnam according to Article 142 of the Law on Insurance Business 2022 are as follows:

- Protect client’s privacy and information security; use client’s information for permissible purposes; avoid providing information for any third party without client's permission, except as provided in law.

- Insurance brokerage companies shall not be allowed to provide loss assessment services for insurance contracts that they have arranged to conclude.

- Entities providing insurance ancillary services can provide loss assessment services and support for payment of insurance claims against insurance contracts whereunder these entities are also policyholders, insured persons or beneficiaries.

- Persons providing consulting services must buy professional liability insurance providing coverage and protection for provision of consulting services; entities providing insurance ancillary

3. Regulations on entities and persons providing insurance ancillary services in Vietnam 

Regulations on entities and persons providing insurance ancillary services according to Article 140 of the Law on Insurance Business 2022 are as follows:

- Insurance companies and branches of foreign non-life insurance companies can provide insurance ancillary services for insurance companies, reinsurance companies, foreign branches in Vietnam, insurance brokerage companies or mutuals providing microinsurance products.

- Insurance brokerage companies can provide insurance ancillary services for insurance companies, reinsurance companies, foreign branches in Vietnam, insurance brokerage companies, mutuals providing microinsurance products, other entities or persons.

- Other entities having legal personality can provide insurance ancillary services for insurance companies, reinsurance companies, foreign branches in Vietnam, insurance brokerage companies or mutuals providing microinsurance products.

- Persons can provide consulting services for insurance companies, reinsurance companies, foreign branches in Vietnam, insurance brokerage companies or mutuals providing microinsurance products.

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