Eliminate inspection function, replace with specialized inspection

According to the draft Law on amending and supplementing a number of articles of the Law on Insurance Business recently announced by the Ministry of Finance , compared to the current Law on Insurance Business, the draft amends 27 articles.

Notably, articles 151, 152, 153, and 154 are amended to replace the word "inspection" with the word "specialized inspection" because the Ministry of Finance currently no longer has the function of inspection but only has the function of specialized inspection for the insurance business sector.

Accordingly, in Article 152 on coordination mechanism in management of insurance business activities, the draft law clearly states: The Ministry of Finance coordinates with foreign insurance state management agencies in the management, supervision and specialized inspection of foreign branches in Vietnam according to regulations.

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According to the Ministry of Finance's report, it is expected that by 2025, the total assets of insurance companies will reach VND 1.06 million billion, an increase of 29.86% compared to 2022. Illustrative photo

The Ministry of Finance shall establish a mechanism for sharing management and supervision information with the State Bank, other ministries, sectors and socio-professional organizations in insurance business activities; coordinate with relevant parties to implement linkage and cooperation between insurance business activities and social insurance and health insurance implemented by the State.

The business registration authority does not approve the use in the enterprise name of phrases or terms such as "insurance", "reinsurance" or other phrases or terms that may cause confusion with insurance enterprises, reinsurance enterprises or branches of foreign insurance enterprises in Vietnam.

Similarly, the terms “insurance broker”, “reinsurance broker” or other terms or phrases are not acceptable if the use of such terms or phrases is likely to cause confusion that the business is an insurance broker.

Pursuant to the Law on Inspection 2025, Resolution No. 190/2025, Decree No. 109/2025/ND-CP and Decision No. 1892/QD-BTC, the Ministry of Finance said that this agency and the Department of Insurance Management and Supervision no longer have inspection functions.

Have the right to hire an independent auditor?

During the process of specialized inspection and handling of administrative violations in the insurance sector, in addition to the powers under current laws, the Ministry of Finance also has the following additional powers:

Request shareholders, capital contributors, managers, controllers, employees of insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, and insurance brokerage enterprises to provide information, documents and data for specialized inspection.

Requesting agencies, organizations and individuals related to insurance business activities to provide information, documents and data to serve specialized inspection contents; at the same time, may request organizations and individuals to explain or come directly to work when necessary.

Requesting credit institutions and foreign bank branches to provide information related to accounts of insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, insurance agents, insurance brokerage enterprises, insurance auxiliary service providers, fund management companies of insurance enterprises, and foreign representative offices in Vietnam.

At the same time, provide information related to organizations and individuals showing signs of committing prohibited acts under the provisions of this law or violating regulations on capital safety ratios, investment activities, financial safety, and solvency of insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam.

When deemed necessary, to conduct specialized inspections of insurance business, the state management agency has the right to hire an independent auditing organization, consulting company or expert to evaluate and provide professional opinions on certain contents that show signs of affecting the safety and soundness of the specialized inspection subject, including: business reserves; solvency; reinsurance; investment; separation of equity capital and insurance premium sources, surplus division; rules, terms and insurance premium schedules.

It is expected that the draft law will be submitted to the National Assembly for comments and approval at the 10th session (October 2025).

Ha Long Bay ship capsize: Latest compensation and insurance payouts The Department of Insurance Management and Supervision (Ministry of Finance) said that as of July 31, the total compensation and insurance payouts for the capsized ship Vinh Xanh 58 are expected to be 23.4 billion VND.

Source: https://vietnamnet.vn/sua-luat-bo-tai-chinh-chi-kiem-tra-chuyen-nganh-khong-con-thanh-tra-bao-hiem-2435453.html