Decree No. 46/2023/ND-CP of the Government clearly regulates the provision and use of cross-border insurance services. According to regulations, the subjects providing insurance services and cross-border insurance brokerage (providing cross-border insurance services) are insurance enterprises and foreign insurance brokerage enterprises headquartered in Vietnam. countries or territories with which Vietnam and that country or territory have signed international trade treaties, including agreements on providing cross-border insurance services in Vietnam.
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Regulations on the provision and use of cross-border insurance services. Illustration photo, Internet source.
Users of insurance services provided across borders are economic organizations with foreign investment capital and foreigners working in Vietnam.
Reinsurance services, international marine insurance, international aviation insurance, and international reinsurance brokerage are performed in accordance with current legal regulations and best practices.
The Decree clearly stipulates that foreign insurance enterprises and insurance brokerage enterprises providing cross-border insurance services in Vietnam must meet the following conditions: Have a license from the state management agency on insurance. Foreign insurance company where the enterprise is headquartered allows the implementation of insurance operations expected to be provided across the border in Vietnam and proves that the enterprise has been operating legally for at least 10 years by the time of service provision. cross-border insurance service in Vietnam.
Reinsurance services, international marine insurance, international aviation insurance, and international reinsurance brokerage are performed in accordance with current legal regulations and best practices. Illustration photo, Internet source.
There is a document from the foreign insurance management agency where the enterprise is headquartered allowing the provision of cross-border insurance services in Vietnam and confirming that there is no violation of legal regulations on operations. insurance business, insurance brokerage and other foreign legal regulations within 3 years immediately preceding the year of providing cross-border insurance services in Vietnam.
Have minimum total assets equivalent to 2 billion US dollars for foreign insurance enterprises; Minimum equivalent to 100 million USD for foreign insurance brokerage enterprises in the fiscal year preceding the year of providing cross-border insurance services in Vietnam.
Foreign insurance enterprises are rated at least "BBB" according to Standard & Poor's or Fitch, "B++" according to AMBest, "Baal" according to Moody's or equivalent ratings results of organizations with functions and experience. Other ratings in the fiscal year preceding the year of providing cross-border insurance services in Vietnam; Profitable business activities in the 3 fiscal years immediately preceding the year of providing cross-border insurance services in Vietnam...
The Decree stipulates that foreign individuals providing cross-border insurance consulting services in Vietnam must meet the conditions prescribed in Clause 1, Article 143 of the Law on Insurance Business.
Foreign organizations providing cross-border insurance auxiliary services in Vietnam must meet the conditions specified in Clause 2, Article 143 of the Law on Insurance Business.
According to the Decree, foreign insurance enterprises, when providing cross-border insurance services in Vietnam, must do so through insurance broker enterprises licensed to establish and operate in Vietnam.
Foreign insurance brokerage enterprises providing cross-border insurance services in Vietnam must broker for insurance enterprises or branches of foreign non-life insurance enterprises that are licensed to establish and operate in Vietnam. Vietnam.
Foreign individuals and organizations are allowed to provide cross-border insurance auxiliary services for insurance enterprises, foreign branches, and insurance brokerage enterprises in Vietnam.
Foreign individuals and organizations providing cross-border insurance auxiliary services to individuals and organizations that are not insurance enterprises, foreign branches, or insurance brokerage enterprises in Vietnam must comply with the law. Cooperate with organizations providing insurance auxiliary services that are legally established and operating in Vietnam.
Responsibilities of service providers
The Decree stipulates the responsibilities of providers of cross-border insurance services and cross-border insurance auxiliary services to provide insurance enterprises, foreign branches, and licensed insurance broker enterprises. License in Vietnam to participate in the process of providing cross-border insurance services according to the provisions of Article 88 of this Decree, documents proving meeting the conditions for providing cross-border insurance services according to regulations specified in Article 86 of this Decree.
At the same time, providing insurance businesses, foreign branches, and insurance brokerage businesses in Vietnam to use cross-border insurance auxiliary services and domestic organizations participating in the service provision process. Support for cross-border insurance includes documents proving that foreign individuals and organizations meet the conditions prescribed in Article 87 of this Decree.
Foreign individuals and organizations providing cross-border insurance auxiliary services in Vietnam are responsible for implementing the regulations on providing insurance auxiliary services in Article 141 and Article 142 of the Law on Insurance Business.
Within 120 days from the end of the fiscal year, insurance enterprises and foreign insurance broker enterprises providing cross-border insurance services shall send to the Ministry of Finance the financial statements of the immediately preceding year. There is confirmation from an independent audit organization and a written comment from the state management agency in charge of foreign insurance where the enterprise is headquartered on the implementation of legal regulations of the enterprise.
Foreign insurance enterprises and insurance brokerage enterprises providing cross-border insurance services; Foreign individuals and organizations providing cross-border insurance ancillary services are responsible for paying taxes and fulfilling other financial obligations related to the provision of cross-border insurance services and ancillary services. Cross-border insurance support in Vietnam according to tax laws.
Responsibilities of related subjects
Insurance enterprises, foreign branches, insurance broker enterprises licensed in Vietnam, organizations providing insurance auxiliary services participating in providing cross-border insurance services according to the provisions of Article 88 This Decree is responsible for:
Maintain documents proving that the entity providing cross-border insurance services in Vietnam with which they participate in providing insurance meets the conditions prescribed in Article 86 of this Decree; Keep documents proving that foreign individuals and organizations providing cross-border insurance auxiliary services in Vietnam meet the conditions prescribed in Article 87 of this Decree and provide them to competent authorities when is requested.
Quarterly, report to the Ministry of Finance on participation in providing cross-border insurance services, use and participation in providing cross-border insurance auxiliary services performed during the period in Vietnam within 30 days from the end of the quarter. The report form is prescribed by the Minister of Finance.
Using or participating in providing cross-border insurance auxiliary services with foreign individuals and organizations that meet the conditions prescribed in Article 86 of this Decree./.
Bich Huong
