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 BUSINESS

Pursuant to the Constitution of the Socialist Republic of Vietnam, which had 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 the Law on Insurance Business, No. 08/2022/QH15.

Article 1. Amending and supplementing a number of articles of the Law on Insurance Business

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

“3. Organizations and individuals have the right to participate in capital contribution for establishment, management, and control of insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, mutual organizations providing microinsurance, and Vietnam-based foreign branches, except for cases where organizations and individuals are not entitled to establish and manage enterprises in Vietnam in accordance with the Law on Enterprises.”.

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

“b) Non-life insurance enterprises and foreign non-life insurance enterprises’ branches trading in products pertaining to the type of 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 trading 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 official commencement of 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 granted 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 shall report thereon in writing and obtain written approval from the Ministry of Finance of the extension of the time limit for official commencement of operation; the maximum extension period is 12 months.

Prior to officially commencing operation, insurance enterprise, reinsurance enterprise or Vietnam-based foreign branch shall proactively: contribute charter capital or allocated capital; elect and appoint the at-law representative; elect and appoint holders of titles that have been approved in principle by the Ministry of Finance; establish the organizational structure, management apparatus, internal control and internal audit systems, and issue procedures and regulations in accordance with the law; fully make the required deposit in accordance with 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 their fulfillment of the tasks specified in Clause 1 of this Article at least 15 days before the date of official operation. In case of change in the holders of titles that have been approved in principle by the Ministry of Finance, the provisions of 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 fail 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 the name 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

In addition to meeting general conditions and criteria which are having been neither sanctioned for administrative violations in the field of insurance business nor disciplined in the form of dismissal for violating internal processes in 3 consecutive years before the time of appointment; not being prosecuted by a competent body in accordance with law at the time of election or appointment, managers and supervisors of insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches must meet 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’ 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 organizations directly operating in the fields of insurance, finance or banking, for the Chairperson of the Board of Directors or Chairperson of the Members’ Council; or having at least 3 years’ 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 organizations directly 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 Director/Director General and at-law 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 auditing, which includes a subject on insurance, or hold a university degree or higher in another major and possess an insurance certificate issued by insurance training institutions lawfully established and operating domestically or overseas;

b) Having at least 5 years’ experience in the field of insurance, finance or banking with at least 3 years of holding the position of manager or supervisor at organizations directly operating in the fields 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, which includes a subject on insurance, or hold a university degree or higher in another major and possess an insurance certificate suitable to the type of insurance which the enterprise is licensed to provide, issued by an insurance training institution lawfully established and operating domestically or overseas;

b) Having at least 3 years’ 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’ 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 prescribed by the Government;

5. The Minister of Finance shall detail Point a, Clause 2 and Point a, Clause 3 of this Article, 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 section, 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 titles in the same institution, except where the appointed actuary concurrently holds the position of head of the insurance pricing department; and may not concurrently work at other insurance enterprises, reinsurance enterprises and foreign branches operating in Vietnam.

Appointed actuaries shall perform their duties according to regulations of the Minister of Finance.”;

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 titles in the same institution, except where the chief accountant concurrently holds the position of head of the finance and accounting department; 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 after 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 prior to applying or changing the methods and bases for calculation of premiums of motor vehicle insurance products, except for compulsory civil liability insurance of motor vehicle owners, and shall strictly comply with the methods and bases for calculation of insurance premiums as notified to the Ministry of Finance.”;

b) To amend and supplement Clause 5 and Clause 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 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, and division of surplus

1. Insurance enterprises, reinsurance enterprises and Vietnam-based foreign branches shall carry out the separation, recording and separate monitoring of equity from premiums as follows

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

b) Revenues, expenses and results of insurance business activities and investment activities from 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 make registration and comply with the principles for separation of equity from premiums, and the principles for division of surplus applicable to life insurance contracts with profit sharing, in accordance with the method 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 principles for separation of equity from premiums prior to implementation and shall strictly comply with the written notification submitted 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, principles of surplus division 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 for a mutual organization providing microinsurance may not concurrently act as an insurance agent for another mutual organization providing microinsurance.”.

10. To amend and supplement Article 134 as follows:

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

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

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

“3a. Investment activities of insurance brokerage enterprises shall ensure the principles of safety, liquidity, and efficiency; comply with provisions of law, and bear full responsibility for their investment activities. Insurance brokerage enterprises shall not make investments in any form in shareholders, capital-contributing members, or related persons of shareholders or capital-contributing members as prescribed by the Law on Enterprises, except for deposits with shareholders or members that are credit institutions.”.

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

“dd) To carry out specialized inspection of insurance enterprises, reinsurance enterprises, Vietnam-based foreign branches, mutual organizations providing microinsurance, insurance brokerage enterprises and Vietnam-based foreign representative offices;”.

13. To amend and supplement Article 154 as follows:

“Article 154. Specialized inspection and examination of insurance business activities

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

2. When deeming it necessary, in order to carry out specialized inspection 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 contents that threaten to affect the safety and health of the inspected subjects, and must ensure independence, objectivity, and avoidance of conflicts of interest:

a) Technical reserves;

b) Solvency;

c) Reinsurance;

d) Investment;

dd) Separation of equity and premiums, division of surpluses;

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 shall be conducted in accordance with the law on inspection; specialized inspection of insurance business activities shall be conducted in accordance with this Law and the law on specialized inspection.”.

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

a) To amend and supplement Clause 2 as follow:

“2. Clause 3, Article 86; Clauses 4 and 5, Article 94; Article 95; and Clauses 3 and 4, Article 99 of this Law shall take effect from January 01, 2028. Articles 109, 110, 111, 112, 113, 114, and 116 of this Law shall take effect from January 01, 2031.”;

b) To amend and supplement Point b, and add Point c after Point b, Clause 3 as follows:

“b) Article 94 of the Law on Insurance Business No. 24/2000/QH10, as amended and supplemented under Law No. 61/2010/QH12 and Law No. 42/2019/QH14, shall remain effective until the end of December 31, 2027;

c) Articles 77, 78, 79, 80, 81, 83, and 98 of the Law on Insurance Business No. 24/2000/QH10, as amended and supplemented under Law No. 61/2010/QH12 and Law No. 42/2019/QH14, shall remain effective until the end of December 31, 2030.”;

c) To add Clause 4 after Clause 3 as follows:

“4. From January 01, 2028 to the end of December 31, 2030, insurance enterprises, reinsurance enterprises, and Vietnam-based foreign branches shall monitor and manage capital, calculate the capital adequacy ratio, and have plans and roadmaps for capital increase in accordance with regulations of the Minister of Finance.”.

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

“2. Insurance agent certificates issued before the effective date of this Law shall remain valid until the end of 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 into insurance agent certificates in accordance with this Law.”.

Article 2. Replacing and removing phrases and annulling a number of articles, clauses and points of the Law on Insurance Business

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

2. To replace the phrase “information safety” with the phrase “cybersecurity” in Article 11.

3. To replace the phrase “inspection and examination” with the phrase “specialized inspection” in Article 152 and Article 153.

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

5. To remove the phrase “, network information safety” in Article 13.

6. To remove the phrase “, cross-border auxiliary insurance services” in Article 6, and the phrase “, auxiliary insurance service activities” 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 Article 143 and Article 155.

Article 3. Effect

1. This Law takes effect on January 01, 2026, except as provided in Clause 2 of this Article.

2. Provisions of Clauses 6 and 8, Article 2 of this Law take effect from July 01, 2026.

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