Insurance firms and agents face higher qualifications bars
Insurance companies and their agents face stricter scrutiny as a number of Government decisions designed to regulate agents’ qualifications are set to take effect in November.
Vietnam has 64 insurance companies, including 30 non-life insurers, 18 life insurers, two reinsurance companies and 14 insurance brokerage companies (Photo: VNA)Hanoi (VNS/VNA) - Insurance companies and their agents face stricter scrutiny as a number of Government decisions designed to regulate agents’ qualifications are set to take effect in November.
Agents, who consult and sell policies independently, must possess insurance-relevant university degrees and certificates, according to Government Decision 73.
Risk analysts must possess a university or higher degrees in risk management majors or relevant certificates.
The decision also requires insurance actuaries, who analyse financial risks, to possess a university or higher degrees.
Simultaneously, Government Decision 98 has been amended to deliver additional penalties to firms and agents who violate Vietnam’s Laws on Insurance Business.
Agents who fail to adhere to technical standards and responsibilities such as providing policies without a signed contract or before a contract was signed, face fines of up to 30 million VND (1,300 USD). Their respective firms face double said amount.
Agents who sell policies or support services they are not allowed or not qualified to provide could be fined up to 70 million VND (3,000 USD) with their firms being fined double.
Those who break the law may also have their insurance licenses revoked.
The Government decisions, which were drafted by the Ministry of Finance, were based on Law 42/2019/QH14 to govern and overlook insurance support services in Vietnam. The law has been approved by the National Assembly in June.
Vietnam is considered by experts as a fast-growing market thanks to rising income and robust GDP growth yet the country has one of the world’s lowest insurance penetrations at just less than one percent of GDP.
The average premium was reported at 30 USD, significantly lower than the global average of 595 USD and Southeast Asia’s average of 74 USD, according to a report released in June by the Insurance Supervisory Authority under the Ministry of Finance, the country’s regulatory body for insurance activities.
The country has 64 insurance companies, including 30 non-life insurers, 18 life insurers, two reinsurance companies and 14 insurance brokerage companies. There are up to 850 non-life insurance products and 450 life insurance products sold on the Vietnamese market.-VNS/VNA
You should also see
Cam Lam - Vinh Hao Expressway to help drive south-central region's economy
The 78.5km Cam Lam - Vinh Hao Expressway, one of the three sub-projects of the North - South Expressway project’s eastern wing, officially opened to traffic on April 26.
See more
Business
Dak Lak firm pioneers in following EUDR in coffee production
The Dak Lak September 2 Import-Export Company Limited (Simexco) has pioneered in building coffee growing areas following the EU Deforestation Regulation (EUDR), it announced on April 25.
Business
Dong Nai calls for Korean investment into green growth
The southern province Dong Nai introduced its investment projects and incentives to the Republic of Korea (RoK)’s firms at a workshop in Seoul on April 25.
Business
Vietnam ranks fifth among aquatic product suppliers for Singapore
Vietnam jumped one place to become the fifth largest exporter of aquatic products to Singapore for the first time in the first quarter of this year, according to its Trade Office in the city state.
Business
Forum seeks ways to boost exports amid external challenges
Experts gathered at a forum in Ho Chi Minh City on April 25 to seek ways to untangle knots in terms of capital and market for exporters in the context that the ongoing conflicts in many regions are disrupting international trade.
Business
Enterprises want clearer regulations on seafood production
It is necessary to develop more detailed and consistent regulations on seafood production for export in line with the implementation of solutions towards sustainable and responsible fishing practices, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
