Current law reveals shortcomings
Law on Insurance Business No. 08/2022/QH15 was passed by the 15th National Assembly on June 16, 2022, effective from January 1, 2023. After more than a year of implementation, the guidance document system has contributed to creating a transparent competitive environment, ensuring proactiveness for businesses.
However, reality shows that there are still some inappropriate points. The growth rate of the insurance market shows signs of slowing down, in the period of 2022-2025, it will only be about 10%. Meanwhile, the application of the risk-based capital model (RBC) according to international practices is facing difficulties due to limitations in human resources and data infrastructure.
In addition, some provisions in the Law on Insurance Business are not synchronized with related laws such as the Law on Inspection and the Law on Handling of Administrative Violations, leading to overlap in application. This not only causes difficulties for businesses but also affects people's trust when participating in insurance.
The insurance market still records large payments to customers
According to preliminary statistics from the Vietnam Insurance Association, in the first 6 months of 2025, the total revenue from life insurance premiums reached VND 67,242 billion, of which newly exploited revenue reached VND 11,728 billion. The number of valid contracts reached more than 11.7 million, an increase of 1.06% over the same period last year.
Total assets of the whole industry reached VND 910,829 billion, up 10.74%; investment capital returned to the economy was nearly VND 787,000 billion, up 10.25%. equity and charter capital of insurance companies also increased by 5.33% and 1.32%, respectively.
Notably, insurance benefits paid in the period amounted to VND 27,468 billion, an increase of nearly 4.4% over the same period last year. This figure shows the important role of life insurance in protecting millions of families financially from risks, while posing a requirement to perfect the legal framework for more transparent and fair compensation activities.
The revised content aims at transparency and customer protection
According to the Ministry of Finance, this draft Law proposes to amend 27 articles, focusing on the following main groups:
Reducing and simplifying business conditions in 9 articles, related to licensing the establishment of insurance companies, conditions for agency, brokerage and insurance support services.
Simplify administrative procedures in Article 1, related to the registration of the principle of separating equity capital and insurance fees of non-life and reinsurance enterprises - contributing to reducing time and compliance costs for enterprises and insurance participants.
Strengthen decentralization and delegation of authority to localities in 2 articles, helping to manage branches, representative offices, and business locations more closely.
Remove obstacles for businesses in 3 articles, including regulations on methods for calculating motor vehicle insurance premiums - a type directly linked to the rights of millions of people.
In addition, 12 other articles are amended related to capital models, inspection activities, management personnel standards, business registration information systems, investment activities of brokerage enterprises and conversion of insurance agents.
The Ministry of Finance believes that this amendment to the Law on Insurance Business not only aims to reduce the burden of procedures for businesses, but more importantly, to build a transparent and fair insurance business environment. Thereby, people's rights when participating in insurance are guaranteed, reducing the risk of disputes and complaints about compensation.
At the same time, the draft law also emphasizes the principle of post-inspection, contributing to preventing negativity and waste, preventing the risk of losing trust in customers. This is considered a necessary step for the insurance market to develop sustainably, along with the goal of stabilizing the macro economy and increasing the country's growth.
