Law Amending and Supplementing a Number of Articles of the Law on Insurance Business, No. 139/2025/QH15

LAW

Amending and Supplementing a Number of Articles of the Law on Insurance Business¹

Pursuant to the Constitution of the Socialist Republic of Vietnam, which has a number of articles amended and supplemented under Resolution No. 203/2025/QH15;

The National Assembly promulgates the Law Amending and Supplementing a Number of Articles of Law No. 08/2022/QH15 on Insurance Business.

Article 1. To amend and supplement a number of articles of the Law on Insurance Business

1. To add Clause 3 below Clause 2, Article 3 as follows:

“3. Organisations and individuals have the right to contribute capital to establish, manage and control insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, mutual organisations providing microinsurance, and foreign branches in Vietnam, except the cases in which such organisations and individuals are not entitled to establish and manage enterprises in Vietnam in accordance with the Law on Enterprises.”.

2. To amend and supplement Points b and c, Clause 3, Article 63 as follows:

“b/ Non-life insurance enterprises and foreign non-life insurance enterprises’ branches dealing in products pertaining to health insurance with a term of up to 1 year and term life insurance products with a term of up to 1 year;

c/ Health insurance enterprises dealing in term life insurance products with a term of up to 1 year.”.

3. To amend and supplement Article 73 as follows:

“Article 73. Time limit for commencement of official operation

“1. An insurance enterprise, a reinsurance enterprise or a Vietnam-based foreign branch must come into official operation within 12 months from the date it is issued an establishment and operation license, unless there are force majeure events or external obstacles. In case of force majeure events or external obstacles, the insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch must report thereon in writing to, and obtain written approval from, the Ministry of Finance of the extension of the time limit for commencement of official operation; the extension period shall be at most 12 months.

Before coming into official operation, the insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch shall proactively perform the following tasks: fully contributing charter capital or allocated capital; electing or appointing its legal representative; electing or appointing the holders of titles already approved in principle by the Ministry of Finance; building the organisational structures of its management, internal control and internal audit apparatuses, and promulgating processes and regulations in accordance with law; and making an escrow deposit as prescribed in this Law at a commercial bank operating in Vietnam.

2. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall notify the Ministry of Finance of the completion of the tasks specified in Clause 1 of this Article at least 15 days prior to the date of official operation; in case of changing the holders of titles already approved in principle by the Ministry of Finance, Article 74 of this Law shall apply. The Ministry of Finance has the right to suspend the official operation of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches if the latter have yet to perform the tasks specified in Clause 1 of this Article.”.

4. To amend and supplement Point b, Clause 3, Article 74 as follows:

“b/ Opening, terminating, changing names of, or relocating, branches or representative offices, for insurance enterprises and reinsurance enterprises;”.

5. To amend and supplement Article 81 as follows:

“Article 81. Conditions and criteria for managers and supervisors of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches

Managers and supervisors of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must meet general conditions and criteria, including having never been sanctioned for administrative violations in the field of insurance business or disciplined in the form of dismissal due to violations of internal processes for 3 consecutive years before the time of election or appointment; not being prosecuted by a competent body in accordance with law at the time of election or appointment, and the following specific conditions and criteria:

1. Conditions and criteria for the Chairperson of the Board of Directors, Chairperson of the Members’ Council, members of the Board of Directors, and members of the Members’ Council:

a/ Having a university or higher degree;

b/ Having at least 5 years’ working experience in the field of insurance, finance or banking or having at least 3 years of holding the position of manager, executive officer or supervisor at institutions operating in the field of insurance, finance or banking, for the Chairperson of the Board of Directors or Chairperson of the Members’ Council; having at least 3 years’ working experience in the field of insurance, finance or banking or having at least 3 years of holding the position of manager, executive officer or supervisor at institutions operating in the field of insurance, finance or banking, for members of the Board of Directors or members of the Members’ Council;

2. Conditions and criteria for the Chief Executive Officer and legal representative:

a/ Having a university or higher degree in the major of insurance. Those who do not have a university or higher degree in the major of insurance must have a university or higher degree in the major of economics, finance, banking, law, business administration, accounting or audit with the subject of insurance, or have a university or higher degree in another major and a certificate in insurance issued by an insurance training institution legally established and operating at home or abroad;

b/ Having at least 5 years’ working experience in the field of insurance, finance or banking with at least 3 years of holding the position of manager or supervisor of institutions operating in the field of insurance, finance or banking;

c/ Residing in Vietnam during the period of incumbency;

3. Conditions and criteria for managers other than those specified in Clauses 1 and 2 of this Article, of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches:

a/ Having a university or higher degree in the major of insurance. Those who do not have a university or higher degree in the major of insurance must have a university or higher degree in another major with the subject of insurance or have a university or higher degree in another major and a certificate in insurance suitable to the type of insurance for which the enterprise is licensed to provide, issued by an insurance training institution legally established and operating at home or abroad;

b/ Having at least 3 years’ working experience in the field of insurance, finance or banking or their expected professional field. Particularly, heads of professional divisions must have at least 3 years’ working experience in the field of insurance or their expected professional field;

c/ Residing in Vietnam during the period of incumbency;

4. Supervisors of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must satisfy other conditions and criteria as specified by the Government;

5. The Minister of Finance shall detail Point a, Clause 2 and Point a, Clause 3, this Article and specify training contents, dossiers, order and procedures for sitting in exams, issuance, revocation and renewal of certificates in insurance issued by insurance training institutions legally established and operating in the country.”.

6. To amend and supplement a number of clauses of Article 82 as follows:

a/ To amend and supplement Clause 4 as follows:

“4. Holders of the titles of appointed actuary, head of risk management division, and head of compliance control division of an insurance enterprise, a reinsurance enterprise, or a Vietnam-based foreign branch may not concurrently hold any managerial title in the same institution, unless the appointed actuary concurrently acts as head of the actuarial division; and may not concurrently work at other insurance enterprises, reinsurance enterprises and foreign branches operating in Vietnam.

Appointed actuaries shall perform their tasks according to the Minister of Finance’s regulations.”;

b/ To amend and supplement Clause 6 as follows:

“6. The chief accountant and the head of the internal audit division of an insurance enterprise, a reinsurance enterprise or a Vietnam-based foreign branch may not concurrently hold any other title in the same institution, unless the chief accountant concurrently acts as head of the finance and accounting division; and may not concurrently work at other insurance enterprises, reinsurance enterprises or other foreign branches operating in Vietnam.”.

7. To amend and supplement a number of clauses of Article 87 as follows:

a/ To amend and supplement Clause 3, and add Clause 3a below Clause 3, as follows:

“3. Insurance enterprises and branches of foreign non-life insurance enterprises shall register the methods and bases for calculation of premiums of products of life insurance and health insurance with the Ministry of Finance and obtain the latter’s approval thereof.

3a. Non-life insurance enterprises and branches of foreign non-life insurance enterprises shall notify the Ministry of Finance in writing before applying or changing the methods and bases for calculation of motor vehicle insurance premiums, except insurance for civil liability of motor vehicle owners, and comply with the methods and bases for premium calculation already notified to the Ministry of Finance.”;

b/ To amend and supplement Clauses 5 and 6 as follows:

“5. The Government shall provide in detail dossiers, order and procedures for registration and notification of methods and bases for calculation of premiums specified in Clauses 3 and 3a of this Article.

6. The Minister of Finance shall provide in detail the methods and bases for calculation of premiums specified in Clauses 3 and 3a of this Article and the provision of the insurance products specified in Clause 4 of this Article.”.

8. To amend and supplement Article 101 as follows:

“Article 101. Separation of equity from premiums, division of surplus

1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall separate, record and separately monitor:

a/ Equity, premiums and corresponding assets of each capital source;

b/ Revenues, expenses and results of insurance business activities and investment activities from the sources of equity and premiums;

c/ Premiums from insurance business activities inside and outside the territory of Vietnam; revenues, expenses, technical reserves and corresponding expenses from insurance business activities inside and outside the territory of Vietnam.

2. Life insurance enterprises shall register the principle of separation of equity from premiums and the principle of division of surplus for life insurance contracts with profit sharing with the Ministry Finance and comply with the methods approved by the Ministry of Finance.

Non-life insurance enterprises and branches of foreign non-life insurance enterprises shall notify the Ministry of Finance in writing of the principle of separation of equity from premiums before implementation, and comply with the principle already notified to the Ministry of Finance.

3. The Government shall provide in detail dossiers, order and procedures for registration and notification specified in Clause 2 of this Article.

4. The Minister of Finance shall provide in detail the separation of equity from premiums, and the principle of division of surplus for life insurance contracts with profit sharing.”.

9. To amend and supplement Clause 1, Article 127 as follows:

“1. An individual who is an insurance agent for a life insurance enterprise may not concurrently act as an insurance agent for another life insurance enterprise. An individual who is an insurance agent for a non-life insurance enterprise or foreign non-life insurance enterprise’s branch may not concurrently act as an insurance agent for another non-life insurance enterprise or foreign non-life insurance enterprise’s branch. An individual who is an insurance agent for a health insurance enterprise may not concurrently act as an insurance agent for another health insurance enterprise. An individual who is an insurance agent of a mutual organisation providing microinsurance may not concurrently act as an insurance agent for another mutual organisation providing microinsurance.”.

10. To amend and supplement Article 134 as follows:

“Article 134. Issuance of establishment and operation licenses for insurance brokerage enterprises

The Government shall provide in detail the conditions, dossier, order and procedures for issuance of establishment and operation licenses for insurance brokerage enterprises.”.

11. To add Clause 3a below Clause 3, Article 138 as follows:

“3a. Investment by insurance brokerage enterprises must adhere to the principles of safety, liquidity and efficiency; compliance with regulations and self-accountability for investment activities. Insurance brokerage enterprises may not make investment in any form in their shareholders or capital-contributing members or related persons of their shareholders and capital-contributing members in accordance with the Law on Enterprises, except deposits at shareholders or members being credit institutions.”.

12. To amend and supplement Point dd, Clause 2, Article 151 as follows:

“dd/ To carry out specialised examination of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, mutual organisations providing microinsurance, insurance brokerage enterprises and Vietnam-based foreign representative offices;”.

13. To amend and supplement Article 154 as follows:

“Article 154. Inspection and specialised examination of insurance business activities

1. The state management agency in charge of insurance business activities shall perform the function of specialised examination of insurance business.

2. When deeming it necessary, in order to carry out specialised examination of insurance business, the agency specified in Clause 1 of this Article may hire an independent audit firm, a consultancy firm or experts to evaluate and give their professional opinions on a number of the following contents that show signs of affecting the safety and health of the inspected subjects but must ensure independence, objectivity and no conflict of interest:

a/ Technical reserves;

b/ Solvency;

c/ Reinsurance;

d/ Investment;

dd/ Separation of equity and premiums, division of surplus;

e/ Rules, terms and premium tariff.

3. The hired independent audit firm, consultancy firm or experts shall take responsibility before law for the accuracy, truthfulness and objectivity of data, evaluation documents and opinions on the contents put for consultancy.

4. Inspection of insurance business activities must comply with the law on inspection; specialised examination of insurance business activities must comply with this Law and the law on specialized examination.”.

14. To amend and supplement a number of points and clauses of Article 156 as follows:

a/ To amend and supplement Clause 2 as follows:

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

b/ To amend and supplement Point b, and add Point c below Point b, Clause 3 as follows:

“b/ Article 94 of Law No. 24/2000/QH10 on Insurance Business, which has a number of articles amended and supplemented under Law No. 61/2010/QH12 and Law No. 42/2019/QH14, takes effect through December 31, 2027;

c/ Articles 77, 78, 79, 80, 81, 83 and 98 of Law No. 24/2000/QH10 on Insurance Business, which has a number of articles amended and supplemented under Law No. 61/2010/QH12 and Law No. 42/2019/QH14, take effect through December 31, 2030.”;

c/ To add Clause 4 below Clause 3 as follows:

“4. From January 1, 2028, through December 31, 2030, insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall supervise, manage capital, calculate capital adequacy ratio, and have plans or roadmap to raise capital under the Minister of Finance’s regulations.”.

15. To amend and supplement Clause 2, Article 157 as follows:

“2. Insurance agent’s certificates issued before the effective date of this Law will remain valid through June 30, 2026. The Minister of Finance shall provide in detail the conversion of insurance agent’s certificates issued before the effective date of this Law into insurance agent’s certificates provided in this Law.”.

Article 2. To replace or remove the phrases, and annul a number of articles, clauses and points of the Law on Insurance Business

1. To replace the phrase “construction investment activities” in Article 8 with the phrase “construction activities”.

2. To replace the phrases “information security” in Article 11 with the phrase “cyber security”.

3. To replace the phrase “inspection, examination” in Articles 152 and 153 with the phrase “specialised examination”.

4. To replace the phrase “the law on inspection” in Article 153 with the phrase “the law on specialised examination”.

5. To remove the phrase “, cyberinformation security” in Article 13.

6. To remove the phrase “, trans-boundary insurance auxiliary services” in Article 6, and the phrase “, insurance auxiliary services” in Article 9.

7. To annul Point a, Clause 1; and Clause 4, Article 64; Article 69; Clause 3, Article 71; Clause 3, Article 117; and Point a, Clause 1; and Clause 4, Article 133.

8. To annul Articles 143 and 155.

Article 3. Effect

1. This Law takes effect on January 1, 2026, except Clause 2 of this Article.

2. Clauses 6 and 8, Article 2 of this Law take effect on July 1, 2026.

This Law was passed on December 10, 2025, by the 15 National Assembly of the Socialist Republic of Vietnam at its 10 session.-

Chairman of the National Assembly
TRAN THANH MAN