Ministry of Finance gives reasons for amending regulations on administrative sanctions in the field of insurance business

Xuyên Đông |

The Ministry of Finance is drafting amendments to a decree on administrative sanctions in the insurance business sector.

The Ministry of Finance is seeking opinions on the draft Decree amending and supplementing a number of articles of Decree No. 174/2024/ND-CP of the Government stipulating penalties for administrative violations in the field of insurance business.

In the Submission of the draft Decree, the Ministry of Finance stated the practical basis for amending and supplementing regulations on sanctioning administrative violations in the field of insurance business.

According to the Ministry of Finance, the insurance market currently has 86 insurance businesses, including 32 non-life insurance businesses, 20 life insurance businesses, 3 reinsurance businesses, 31 insurance brokerage businesses and 1 foreign non-life insurance business branch.

The business performance results in 2025 show that the total assets of enterprises in the insurance business sector are estimated at 1,113,619 billion VND, an increase of 8.58% compared to 2024.

In which, non-life insurance enterprises reached about 160,033 billion VND, life insurance enterprises reached about 953,586 billion VND.

Reinvestment in the economy is estimated at 958,987 billion VND, an increase of 10.31% compared to 2024. Of which, non-life insurance enterprises reached about 93,131 billion VND and life insurance enterprises reached about 865,856 billion VND.

Total insurance nghiệp vụ provision is estimated at 727,366 billion VND, an increase of 8.77% compared to the previous year. Of which, non-life insurance enterprises reached about 38,385 billion VND, and life insurance enterprises reached about 688,981 billion VND.

Total equity capital is estimated at 221,427 billion VND, an increase of 3.77% compared to 2024. Of which, non-life insurance enterprises reached about 45,302 billion VND and life insurance enterprises reached about 176,125 billion VND.

Total insurance premium revenue is estimated at 237,211 billion VND, an increase of 3.96% compared to the previous year. In which, revenue of non-life insurance block reached about 88,425 billion VND and life insurance reached about 148,786 billion VND.

Insurance benefit payments are estimated at 91,845 billion VND, an increase of 13.52% compared to 2024. Of which, non-life insurance companies paid about 26,453 billion VND and life insurance companies paid about 65,392 billion VND.

For insurance brokerage activities, the total insurance premiums arranged through brokerage in 2025 are estimated at 20,346 billion VND, an increase of 2.37% compared to the same period last year. Of which, the original insurance premium reached about 11,612 billion VND and the reinsurance premium reached about 8,735 billion VND.

Insurance brokerage commissions in 2025 are estimated at 1,332 billion VND, an increase of 2.89% compared to the same period last year. Of which, original insurance brokerage commissions reached about 1,035 billion VND and reinsurance brokerage commissions reached about 297 billion VND.

According to the Ministry of Finance, besides the achieved results, legal regulations on sanctioning administrative violations in the field of insurance business need to be further improved to be consistent with the new guidelines and policies of the Party and the State, and at the same time meet the practical requirements of ensuring synchronization with relevant legal documents.

The submission cited the provisions of Clause 1, Article 2 of the Law on Handling of Administrative Violations, according to which administrative violations are acts of fault committed by individuals or organizations, violating the provisions of law on state management, not crimes and according to the provisions of law, they must be sanctioned for administrative violations.

At the same time, point d, clause 1, Article 3 of the Law on Handling of Administrative Violations stipulates that the principle of sanctioning administrative violations is to only sanction when there is an administrative violation committed by law.

According to the Ministry of Finance, based on these regulations, there must be legal regulations on state management to have a basis for legal regulations on handling administrative violations.

In addition, the Ministry of Finance said that the draft Decree amending and supplementing Decree No. 189/2025/ND-CP is currently being consulted with Government members, in which it is expected to amend the sanctioning authority for the Head of the inspection team as stipulated in Decree No. 78/2026/ND-CP.

From the above practical bases, the Ministry of Finance believes that it is necessary to issue a Decree amending and supplementing a number of articles of Decree No. 174/2024/ND-CP on sanctioning administrative violations in the field of insurance business and Decree No. 46/2023/ND-CP detailing the implementation of a number of articles of the Law on Insurance Business in order to continue to improve the legal framework for insurance business activities, ensuring compliance with the Party's new guidelines and policies, and the State's policies.

Xuyên Đông
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