Decree No. 46/2023/ND-CP guiding the Law on Insurance Business

On July 01, 2023, the Government hereby issues Decree No. 46/2023/ND-CP detailing the implementation of a number of articles of the Law on Insurance Business.

Accordingly, the minimum charter capital of any life insurer is prescribed as follows:

• Life insurance businesses and health insurance businesses: At minimum level: VND 750 billion.
• Life insurance business, health insurance business and unit-linked insurance or pension: At minimum level: VND 1,000 billion.
• Life insurance business, health insurance business and unit-linked insurance and pension: At minimum level: VND 1,300 billion.

Any insurer/reinsurer or Vietnam-based foreign branch that wishes to reduce its charter capital/allocated capital must satisfy 02 requirements:

• Such insurer/reinsurer/Vietnam-based foreign branch must satisfy the financial requirements specified in this Decree;
• After reducing its charter capital/allocated capital, the insurer/reinsurer/Vietnam-based foreign branch still maintains the satisfaction of the capital and solvency margin requirements as specified by the law and the shareholder structure requirement specified in Article 66 of the Law on Insurance Business regarding joint-stock companies.

Decree No. 46/2023/ND-CP takes effect on July 01, 2023