A foreign insurance business providing trans-border insurance services in Viet Nam is required to have a total asset worth US$2 billion.
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A foreign insurance business providing trans-border insurance services in Viet Nam is required to have a total asset worth US$2 billion.
Decree No.73/2016/ND-CP guiding the implementation of the Vietnamese Law on Insurance defines that the objects of supplying insurance services and trans-border insurance brokers are foreign insurance businesses and insurance brokers located at nations signing international trade treaties with Viet Nam, including agreements on trans-border insurance service supply.
The users of trans-border insurance service are enterprises which are established in Viet Nam with the foreign capital holdings more than 49% and foreigners.
The Decree stipulates that reinsurance services, international maritime insurance, international aviation insurance, international reinsurance brokers, consultancy service, calculation service, risk evaluation and compensation must be realized within the current legal regulations and rules.
Life insurance and health insurance are not applied in this case.
Conditions of service providers
Foreign insurance businesses and brokers providing trans-border insurance service in Viet Nam have to meet demands on financial capacity and loss-absorbing capacity.
These businesses must be ranked at least “BBB” by the Standard & Poor’s or the Fitch or “B++” by the A.M.Best or the Moody’s.
(Source:VGP)
