Enterprises Are insurers allowed to provide insurance services and products in the online environment?

What is an insurance brokerage business?

According to Clause 21, Article 4 of the Law on Insurance Business 2022, it is stipulated that an insurance brokerage enterprise is an enterprise established, organized and operating in accordance with the provisions of the Law on Insurance Business 2022 and other relevant laws to carry out insurance brokerage activities.

What are the conditions for establishing an insurance brokerage business in Vietnam?

Conditions for establishing an insurance brokerage business in Vietnam are specified in Article 133 of the Law on Insurance Business 2022, specifically as follows:

Conditions on shareholders and members contributing capital to establish

Organizations and individuals have the right to establish and manage businesses in Vietnam according to the provisions of the Law on Enterprises 2020;

The organization has legal status, is operating legally and meets the financial conditions according to the Government’s regulations.

– Capital conditions

charter capital is contributed in Vietnam Dong and is not lower than the minimum level as prescribed by the Government;

Shareholders and capital contributing members are not allowed to use loan capital or investment trust capital from other organizations or individuals to contribute capital.

– Personnel conditions

There must be a Chairman of the Board of Directors or Chairman of the Board of Members, Director or General Director, expected legal representative who meets the conditions and standards of management capacity, experience and professional expertise as prescribed in Article 138 of the Law on Insurance Business 2022.

Have an organizational form according to the provisions of the Law on Insurance Business 2022 and have a draft charter in accordance with the provisions of the Law on Enterprises 2020.

Organizations established under foreign law that contribute capital to establish, purchase shares, or contribute capital of 10% or more of the charter capital of an insurance brokerage enterprise must meet the following conditions:

 Is an organization established under foreign law that is directly carrying out or has a subsidiary carrying out insurance brokerage activities for the most recent 5 consecutive years up to the time of submitting the application for an establishment and operation license;

Permitted by a competent foreign agency to establish an insurance brokerage business in Vietnam and confirmed not to have seriously violated the provisions of law on insurance brokerage of the country where the organization is headquartered for the last 3 consecutive years up to the time of submitting the application for an establishment and operation license.

Thus, to establish an insurance brokerage business, it must fully meet the above conditions.

Are insurance brokerage businesses allowed to provide insurance services and products in the online environment?

Pursuant to Clause 1, Article 14 of the 2022 Law on Insurance Business, regulations on providing insurance services and products in the online environment are as follows:

Providing insurance services and products in the internet environment

1. Organizations and individuals allowed to provide insurance services and products in the online environment include:

a) Insurance enterprises, branches of foreign non-life insurance enterprises, mutual organizations providing micro insurance;

b) Insurance agents;

c) Insurance broker enterprises.

….

Based on the above content, insurance brokerage businesses are allowed to provide insurance services and products in the online environment.

Accordingly, insurance brokerage businesses can proactively choose forms of providing insurance services and products in the online environment.

In addition, when providing services and insurance products in the online environment, the insurance buyer must be responsible if the provision of services or insurance products affects the legitimate rights and interests of the insurance buyer.

Therefore, you can research to conduct your business in accordance with the law.

What rights do insurance brokers have in insurance business activities?

In Clause 1, Article 137 of the Law on Insurance Business 2022, insurance brokerage enterprises have the following rights:

Enjoy original insurance brokerage commissions and reinsurance brokerage commissions according to regulations of the Minister of Finance;

Revenue from providing insurance auxiliary services;

Revenue from performing other tasks related to the insurance contract at the request of the insurance buyer;

Other rights as prescribed by law.

What obligations do insurance brokers have in insurance business activities?

Insurance broker enterprises are responsible for performing the obligations specified in Clause 2, Article 137 of the Law on Insurance Business 2022, specifically as follows:

Secure information provided by customers, insurance businesses, reinsurance businesses, and foreign branches in Vietnam.

Except when required by a competent state authority or with the consent of customers, insurance enterprises, reinsurance enterprises, foreign branches in Vietnam;

Compensate customers for damages caused by insurance brokerage activities;

Disclose information to customers on contents according to regulations of the Minister of Finance;

Separately account and monitor revenues and payments on behalf of insurance enterprises, reinsurance enterprises, and foreign branches in Vietnam;

Buy professional liability insurance suitable for insurance brokerage activities;

Other obligations as prescribed by law.