Law Amending and Supplementing Certain Articles of the Insurance Business Law No. 139/2025/QH15

LAW

AMENDMENTS AND SUPPLEMENTS TO CERTAIN PROVISIONS OF THE INSURANCE BUSINESS LAW

LAW ON INSURANCE BUSINESS

Pursuant to the Constitution of the Socialist Republic of Vietnam amended and supplemented by Resolution No. 203/2025/QH15;

The National Assembly promulgates this Law amending and supplementing certain provisions of the Insurance Business Law No. 08/2022/QH15.

Article 1. Amendments and supplements to certain provisions of the Insurance Business Law

1. Supplement Clause 3 following Clause 2 of Article 3 as follows:

“3. Organizations and individuals have the right to participate in capital contribution for establishing, managing, and controlling insurance companies, reinsurance companies, insurance brokerage companies, micro-insurance mutual organizations, foreign branches in Vietnam, except in cases where organizations and individuals are not entitled to establish and manage enterprises in Vietnam according to the Enterprise Law.”

2. Amend and supplement Point b and Point c of Clause 3 of Article 63 as follows:

“b) Non-life insurance companies and non-life insurance company branches from foreign countries may operate health insurance products with terms up to one year and term life insurance products with terms up to one year;

c) Health insurance companies may operate term life insurance products with terms up to one year.”

3. Amend and supplement Article 73 as follows:

"Article 73. Official Operation Period

1. Insurance companies, reinsurance companies, and foreign branches in Vietnam must commence official operations within twelve months from the date of issuance of the establishment and operation permit, except in cases of force majeure or objective obstacles. In cases of force majeure or objective obstacles, insurance companies, reinsurance companies, and foreign branches in Vietnam must submit a written report and obtain written approval from the Ministry of Finance regarding the extension of the official operation period; the maximum extension period is twelve months.

Prior to commencing official operations, insurance companies, reinsurance companies, and foreign branches in Vietnam must proactively undertake the following tasks: fully pay the charter capital or authorized capital; elect and appoint legal representatives; elect and appoint positions that have been approved in principle by the Ministry of Finance; establish internal management, control, and internal audit structures and issue relevant procedures and regulations as prescribed by law; deposit the required amount as security in a commercial bank operating in Vietnam.

2. Insurance companies, reinsurance companies, and foreign branches in Vietnam must notify the Ministry of Finance about the completion of the tasks stipulated in Clause 1 of this Article at least fifteen days before the commencement of official operations; in cases of changes to positions that have been approved in principle by the Ministry of Finance, they shall comply with the provisions of Article 74 of this Law. The Ministry of Finance has the authority to suspend the commencement of official operations of insurance companies, reinsurance companies, and foreign branches in Vietnam if they have not complied with the provisions of Clause 1 of this Article."

4. Amend and supplement Point b of Clause 3 of Article 74 as follows:

“b) Opening, closing, changing the name, location of branches, representative offices of insurance companies, reinsurance companies;"

5. Amend and supplement Article 81 as follows:

"Article 81. Conditions and Standards for Managers and Supervisors of Insurance Companies, Reinsurance Companies, and Foreign Branches in Vietnam

Managers and supervisors of insurance companies, reinsurance companies, and foreign branches in Vietnam must meet general conditions and standards which include not being subject to administrative penalties in the field of insurance business, not being dismissed due to violations of internal procedures for three consecutive years prior to the date of election or appointment, and not being prosecuted by competent authorities under the law at the time of election or appointment, and specific conditions and standards as follows:

1. Conditions and Standards for Chairmen of the Board of Directors, Chairmen of the Board of Members, Board of Directors Members, Board of Members Members:

a) Hold a bachelor's degree or higher;

b) The Chairman of the Board of Directors, Chairman of the Board of Members must have at least five years of direct work experience in the insurance, finance, banking sector or have held a managerial position for at least three years in an organization directly operating in the insurance, finance, banking sector. Board of Directors Members, Board of Members Members must have at least three years of direct work experience in the insurance, finance, banking sector or have held a managerial position for at least three years in an organization directly operating in the insurance, finance, banking sector;

2. Conditions and Standards for General Directors or Managing Directors, Legal Representatives:

a) Hold a bachelor's degree or higher in insurance. In cases where there is no bachelor's degree or higher in insurance, they must hold a bachelor's degree or higher in economics, finance, banking, law, business administration, accounting, auditing including courses on insurance or hold a bachelor's degree or higher in another field and have an insurance certificate issued by training institutions established and legally operating in Vietnam or abroad;

b) Have at least five years of work experience in the insurance, finance, banking sector, including at least three years in a managerial or supervisory position in an organization directly operating in the insurance, finance, banking sector;

c) Reside in Vietnam during their tenure;

3. Conditions and Standards for Other Managers Not Covered Under Clause 1 and Clause 2 of this Article of Insurance Companies, Reinsurance Companies, and Foreign Branches in Vietnam:

a) Hold a bachelor's degree or higher in insurance. In cases where there is no bachelor's degree or higher in insurance, they must hold a bachelor's degree or higher in another field that includes courses on insurance, or hold a bachelor's degree or higher in another field and have a relevant insurance certificate issued by domestic or foreign training institutions established and operating legally.

b) Have at least three years of work experience in the insurance, finance, banking sector, or in the specialized field intended to be responsible for. Specifically, for heads of business units, they must have at least three years of work experience in the insurance sector or in the specialized field intended to be responsible for.

c) Reside in Vietnam during their tenure;

4. The controllers of insurance companies, reinsurance companies, and foreign branches in Vietnam must meet other conditions and standards as prescribed by the Government.

5. The Minister of Finance shall provide detailed regulations on point a of Clause 2 and point a of Clause 3 of this Article, including the content of training, application forms, procedures, and processes for issuing, revoking, and providing insurance certificates by insurance training institutions established and operating legally within the country.

6. Amend and supplement some clauses of Article 82 as follows:

a) Amend and supplement Clause 4 as follows:

“4. The positions of Actuary, Head of Risk Management Department, and Head of Compliance Department in insurance companies, reinsurance companies, and foreign branches in Vietnam shall not concurrently hold any management position within the same organization, except for the case where the Actuary concurrently holds the position of Head of Premium Calculation Department; they shall not simultaneously work in other insurance companies, reinsurance companies, or foreign branches operating in Vietnam.

The Actuary shall perform tasks as prescribed by the Minister of Finance.”

b) Amend and supplement Clause 6 as follows:

“6. The Chief Accountant and Head of Internal Audit Department in insurance companies, reinsurance companies, and foreign branches in Vietnam shall not concurrently hold any position within the same organization, except for the case where the Chief Accountant concurrently holds the position of Head of Financial Accounting Department; they shall not simultaneously work in other insurance companies, reinsurance companies, or foreign branches operating in Vietnam.”

7. Amend and supplement some clauses of Article 87 as follows:

a) Amend and supplement Clause 3 and add Clause 3a after Clause 3 as follows:

“3. Non-life insurance companies and non-life insurance branch companies must register and obtain approval from the Ministry of Finance for the methods and bases for calculating premiums of life insurance and health insurance products.

3a. Non-life insurance companies and non-life insurance branch companies must notify the Ministry of Finance in writing before applying or changing the methods and bases for calculating premiums of motor vehicle insurance products, excluding compulsory liability insurance for motor vehicles, and must comply with the methods and bases for calculating premiums as notified to the Ministry of Finance.”

b) Amend and supplement Clauses 5 and 6 as follows:

“5. The Government shall provide detailed regulations on the application forms, procedures, and processes for registering and notifying the methods and bases for calculating premiums as stipulated in Clauses 3 and 3a of this Article.

6. The Minister of Finance shall provide detailed regulations on the methods and bases for calculating premiums as stipulated in Clauses 3 and 3a of this Article, and the provision of products as stipulated in Clause 4 of this Article.”

8. Amend and supplement Article 101 as follows:

“Article 101. Separation of Shareholders' Equity and Insurance Premiums, Distribution of Surplus

1. Insurance companies, reinsurance companies, and foreign branches in Vietnam must implement the separation, recording, and tracking separately of shareholders' equity and insurance premiums as follows:

a) Shareholders' equity, insurance premiums, and corresponding assets of each source;

b) Revenue, expenses, and results from insurance business operations and investment activities of shareholders' equity and insurance premiums;

c) Insurance premiums from insurance business operations both within and outside the territory of Vietnam; revenue, expenses, provisions, and corresponding costs from insurance business operations both within and outside the territory of Vietnam.

2. Life insurance companies must register and follow the method approved by the Ministry of Finance regarding the principle of separating shareholders' equity and insurance premiums, and the principle of distributing surplus for participating life insurance contracts.

Non-life insurance companies and non-life insurance branch companies must notify the Ministry of Finance in writing of the principle of separating shareholders' equity and insurance premiums before implementation and must follow the notification strictly.

3. The Government shall provide detailed regulations on the application forms, procedures, and processes for registering and notifying as stipulated in Clause 2 of this Article.

4. The Minister of Finance shall provide detailed regulations on the separation of shareholders' equity and insurance premiums, and the principle of distributing surplus for participating life insurance contracts.”

9. Amend and supplement Clause 1 of Article 127 as follows:

“1. An individual who is currently working as an insurance agent for a life insurance company may not simultaneously work as an insurance agent for another life insurance company. An individual who is currently working as an insurance agent for a non-life insurance company or a non-life insurance branch company may not simultaneously work as an insurance agent for another non-life insurance company or a non-life insurance branch company. An individual who is currently working as an insurance agent for a health insurance company may not simultaneously work as an insurance agent for another health insurance company. An individual who is currently working as an insurance agent for a mutual organization providing micro-insurance may not simultaneously work as an insurance agent for another mutual organization providing micro-insurance.”

10. Amend and supplement Article 134 as follows:

“Article 134. Issuance of License for Establishment and Operation of Insurance Brokerage Companies

The Government shall provide detailed regulations on conditions, documents, procedures, and processes for issuing licenses for the establishment and operation of insurance brokerage enterprises.

11. Add Clause 3a following Clause 3 of Article 138 as follows:

“3a. Investments made by insurance brokerage enterprises must ensure safety, liquidity, and efficiency; comply with legal provisions, and bear responsibility for investment activities. Insurance brokerage enterprises may not invest in any form for shareholders, contributing members, or related persons to shareholders or contributing members as stipulated by the Law on Enterprises, except for deposits at shareholders or contributing members who are credit organizations.”

12. Amend and supplement Point d of Clause 2 of Article 151 as follows:

“d) Specialized inspection of insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, micro-insurance mutual organizations, insurance brokerage enterprises, and foreign representative offices in Vietnam;”

13. Amend and supplement Article 154 as follows:

“Article 154. Supervision and specialized inspection of insurance business operations

1. The State management agency for insurance business operations shall perform the function of specialized inspection of insurance business operations.

2. When it deems necessary, to carry out specialized inspection of insurance business operations, the agency specified in Clause 1 of this Article has the right to hire independent auditing organizations, consulting companies, or experts to evaluate and provide professional opinions on certain contents that may affect the safety and soundness of the inspected entity, ensuring independence, objectivity, and lack of conflict of interest:

a) Business reserves;

b) Solvency;

c) Reinsurance;

d) Investment;

đ) Separation of equity capital and premium income, distribution of surplus;

e) Rules, terms, and insurance tariff tables.

3. Independent auditing organizations, consulting companies, or hired experts are responsible under the law for the accuracy, truthfulness, and objectivity of the evaluation data and opinions provided on the mentioned contents.

4. Insurance business operations supervision shall be carried out in accordance with the law on supervision; specialized inspection of insurance business operations shall be conducted in accordance with this Law and the law on specialized inspection.”

14. Amend and supplement some points and clauses of Article 156 as follows:

a) Amend and supplement Clause 2 as follows:

“2. Clause 3 of Article 86, Clause 4 and Clause 5 of Article 94, Article 95, Clause 3 and Clause 4 of Article 99 of this Law shall take effect from January 1, 2028. Articles 109, 110, 111, 112, 113, 114, and 116 of this Law shall take effect from January 1, 2031.”

b) Amend and supplement Point b and add Point c following Point b of Clause 3 as follows:

“b) Article 94 of the Insurance Business Law No. 24/2000/QH10, which has been amended and supplemented by Laws No. 61/2010/QH12 and No. 42/2019/QH14, shall remain effective until December 31, 2027;

c) Articles 77, 78, 79, 80, 81, 83, and 98 of the Insurance Business Law No. 24/2000/QH10, which have been amended and supplemented by Laws No. 61/2010/QH12 and No. 42/2019/QH14, shall remain effective until December 31, 2030.”

c) Add Clause 4 following Clause 3 as follows:

“4. From January 1, 2028 to December 31, 2030, insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam shall monitor capital, calculate solvency ratios, and develop plans and timelines for increasing capital in accordance with the regulations of the Minister of Finance.”

15. Amend and supplement Clause 2 of Article 157 as follows:

“2. Insurance agent certificates issued before the effective date of this Law shall continue to be valid until June 30, 2026. The Minister of Finance shall provide detailed regulations on the conversion of insurance agent certificates issued before the effective date of this Law to insurance agent certificates in accordance with this Law.”

Article 2. Replacing phrases, deleting phrases, abolishing some articles, clauses, and points of the Insurance Business Law

1. Replace the phrase "investment construction activities" with the phrase "construction activities" in Article 8.

2. Replace the phrase "information security" with the phrase "cybersecurity" in Article 11.

3. Replace the phrase "inspection and supervision" with the phrase "specialized inspection" in Article 152 and Article 153.

4. Replace the phrase "law on inspection" with the phrase "law on specialized inspection" in Article 153.

5. Delete the phrase ", information security" in Article 13.

6. Delete the phrase ", cross-border insurance auxiliary services" in Article 6, and the phrase ", insurance auxiliary service activities" in Article 9.

7. Abolish Point a Clause 1 and Clause 4 of Article 64, Article 69, Clause 3 of Article 71, Clause 3 of Article 117, Point a Clause 1 and Clause 4 of Article 133.

8. Abolish Article 143 and Article 155.

Article 3. Effectiveness

1. This Law takes effect from January 1, 2026, except for the cases provided for in Clause 2 of this Article.

2. Clause 6 and Clause 8 of Article 2 of this Law take effect from July 1, 2026.

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, the 10th Session of the 15th Term, on December 10, 2025.