What is insurance service? Regulations on insurance industry database in Vietnam

What is insurance service? Regulations on insurance industry database in Vietnam (Internet image)

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

1. What is insurance service?

According to Clause 2, Article 4 of the Law on Insurance Business 2022, insurance service (also insurance business sector) refers to an activity of an insurer, non-life insurer’s foreign branch, mutual providing microinsurance product that insures the risk of the insured.

That activity is performed by the policyholder’s paying insurance premiums in order for the aforesaid entity to pay indemnity or insurance coverage in case of any policy event that occurs under terms and conditions of an insurance contract.

2. Regulations on insurance industry database in Vietnam

Regulations on insurance industry database under Article 11 of the Law on Insurance Business 2022 are as follows:

- The Government shall invest in establishing the database in the insurance industry. The Ministry of Finance shall be responsible for setting up, running and managing the insurance-industry database designed for state management and protection of legitimate rights and interests of parties involved in insurance business activities.

- Insurers; reinsurers; foreign insurance branches in Vietnam; insurance brokers; insurance ancillary service providers; mutuals providing microinsurance product shall be responsible for providing policyholder, the insured, subject matter insured, insurance agent and other relevant information used as inputs into the database in the insurance industry.

- Collection, use, storage and provision of information included in the insurance industry database must ensure confidentiality and security of information, and comply with the regulatory provisions of laws on protection of personal privacy, personal secrets, family secrets and trade secrets.

State agencies, other entities and persons are required to use the information provided for the right purposes and are not allowed to provide information to any third party without the consent of the policyholder or the insured, unless otherwise provided in law.

- The insurance industry database may be linked to other national and specialized databases.

- The Government shall impose detailed regulations on setting up, collecting, using, storing and providing information for the insurance industry database, and linking the insurance industry database with other national and specialized databases.

3. Application of information technology in the insurance industry in Vietnam

Application of information technology in the insurance industry according to Article 12 of the Law on Insurance Business 2022 is as follows:

- Application of information technology in the insurance industry serves the following purposes:

+ Improve insurance business performance, including building and design of insurance products, risk assessment, underwriting, conclusion of contracts, management of contracts, loss assessment, payment of insurance claims and coverage; business management and methods of providing insurance services and products;

+ Modernize statistics and reporting methods; streamline administrative procedures and reduce administrative burdens; build information technology systems and databases in the insurance business to serve the purposes of management, supervision, analysis and forecast of insurance markets, and prevention or control of insurance frauds or scams.

- Application of information technology in the insurance industry must conform to regulatory provisions of this Law, law on electronic transactions, information technology, anti-money laundering and other relevant legislation.

- The Government shall impose regulations on recent issues related to application of information technology in the insurance industry.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE