Insurance auxiliary services – guidance regulation promulgated

To ensure the national governance and to provide enterprises with favorable legal framework, Law no. 42/2019/QH14 amending, supplementing several articles of Law on Insurance Business entered into force on the 1st of November, 2019, set out specific provisions regarding insurance auxiliary services as follow:

1. Organizations, individuals to provide insurance auxiliary services

Insurance auxiliary service is an integral part of insurance business activities, implemented by insurers, insurance brokers, other organizations and individuals for profit purpose. Insurance auxiliary service includes 5 activities:

  1. insurance consulting;
  2. insurance risk assessment;
  3. actuarial analysis;
  4. insurance loss assessment;
  5. insurance claim assistance.

Specifically, individuals are only allowed to insurance consulting.

2. Conditions to provide insurance auxiliary services

To individual providing insurance consulting services shall:

  • Be at least 18 years old and have full legal capacity; and
  • Have a bachelor’s degree or higher majoring in insurance. In case of no bachelor’s degree or higher majoring in insurance, there must be a bachelor’s degree or higher in another major and a certificate of training in insurance consulting granted by a training institution legally operating in Vietnam or overseas.

To organization providing insurance auxiliary services shall:

  • Be a juridical person, legally established and operated;
  • individuals directly to perform insurance auxiliary activities being at least 18 years old; having qualifications that are appropriate for the insurance auxiliary services they provide and granted by a training institution legally operating in Vietnam or overseas.

Until 1st of November, 2020, individuals and organizations, who have been providing insurance auxiliary services before the 1st of November, 2019 are required to meet the mentioned above requirements.

In the event of expiry and the absence of satisfaction of these above mentioned conditions, individuals and organizations are not allowed to provide these respective services until meeting the satisfaction.

3. Three (3) remarks when providing insurance auxiliary services

  • Insurance auxiliary service providers shall not provide insurance loss assessment services and insurance claim assistance for insurance contract that the providers are both the insurance buyer and the insured or beneficiary;
  • Insurance brokers shall not provide insurance loss assessment services for the insurance agreements they brokered;
  • Insurance auxiliary service providers shall purchase professional liability insurance.