Decree 46/2023/ND-CP is an important piece of legislation that provides guidance on the implementation of the Law on Insurance Business. Enacted in the year 2023, this decree aims to streamline and regulate the insurance industry in order to protect the interests of policyholders and enhance the overall efficiency and transparency of the sector. 

1. Information collection for the insurance business database

The Insurance Database will comprise the following five (5) groups of information.
(i) Insurance enterprises, reinsurance enterprises, foreign branches, insurance brokerage enterprises, mutual microinsurance organisations, and foreign representative offices in Vietnam
(ii) The policyholders, the insureds, and the insured objects, such as the number of the insureds, the number of insurance policies, the number of claims and the total amount of indemnification
(iii) About insurance agents, such as reports on training and using insurance agents, etc.;
(iv) Information about the examination and issuance of insurance certificates, insurance auxiliary certificates and insurance brokerage certificates.
(v) Lastly, information about the management, supervision and administrative sanctions in the insurance sector.

2. The standards are setting higher

– For managerial and operational positions
– For insurance agency organisations
– Stricter minimum charter capital and required capital conditions for insurance enterprises.

3. Conclusion

Decree 46 has brought about notable alterations to streamline the provision and utilization of cross-border insurance services. Specifically, it states that foreign enterprises and foreigners employed in Vietnam are now considered eligible users of such services. Additionally, the decree emphasizes the importance of ensuring equal access and treatment for both domestic and foreign entities when it comes to cross-border insurance. In contrast, the former Decree 73 restricted the availability of cross-border insurance products to only domestically established enterprises with over 49% foreign investment and foreigners working in Vietnam. 
#insurancebusiness #law

For the full detail of this post, please reference on this link: http://hmlf.vn/decree-46-2023-nd-cp-guiding-the-implementation-of-the-law-on-insurance-business-and-notable-contents/

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