Insurance Business Law 2022 takes effect from January 1, 2023… But up to now, there is still no document guiding the implementation of this Law. Many insurance businesses appear confused in the implementation of the Insurance Business Law.
1. Urgently direct the drafting of implementation guidance documents
The Government and relevant state agencies are in the urgent stage of completing the draft Decree detailing a number of articles of the Insurance Business Law 2022. It is known that the Insurance Business Law 2022 has several Outstanding new points… Completion of the guiding document for this Law is necessary to avoid legal “gaps”.
Accordingly, sections 1 and 6, Chapter II of the draft Decree will take effect from January 1, 2023. At the same time, additional regulations are added: Agreements arising after January 1, 2023 but before the effective date of the Decree. And if the content is different from the Decree, it must be reviewed and edited to meet it.
2. Regulations on risk-based capital still do not have detailed regulations
Some regulations related to legal capital, capital investment, solvency, etc. And restoring solvency will continue to take effect from December 31, 2027. According to the Ministry of Finance, the regulation on risk-based capital in the Law on Insurance Business 2022 takes effect from January 1, 2028. Therefore, detailed regulations for this content have not been included in the draft of the Decree.
Currently, the Ministry of Finance is researching and building a risk-based capital model for the Vietnamese market. The team expects to test the model twice before determining the official risk coefficient.
The lack of guiding documents has caused a lot of confusion for businesses. However, policymakers are in the process of finalizing policies on insurance business. In the meantime, by seeking support and improving processes, businesses can still stay ahead and ensure compliance with the law.
(Excerpt from securities investment newspaper dated April 3, 2023)
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