On December 10, 2025, the National Assembly officially passed the amended Law on Insurance Business 2025 (Law No. 139/2025/QH15). Amending 27 articles from the 2022 version, this legislation reflects a strategic effort to restructure the legal framework, ensuring transparency and creating new growth opportunities for the Vietnam insurance market through 2030. Most provisions will take effect on January 1, 2026, with others following on July 1, 2026. Below, Viet An Law provides an essential update on the key changes in Vietnam’s amended Law on Insurance Business 2025: Compliance new regulations.
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After more than two years of implementation, the Law on Insurance Business 2022 No. 08/2022/QH15 has gradually contributed to shaping a modern legal framework for the Vietnamese insurance market. However, given the urgent need for institutional reform and the rapid changes in the economy, amendments and additions are inevitable. Specifically:
Compared to the Law Insurance Business 2022, the amended Law Insurance Business revises 27 articles, including reducing and simplifying business conditions in 9 articles related to licensing the establishment and operation of insurance companies; conditions before officially operating; conditions and standards for managers and supervisors; overseas investment; conditions for operating insurance agencies; licensing the establishment and operation of insurance brokerage companies; and conditions for providing insurance auxiliary services….
Some notable new features include:
Previously, Clause 2, Article 73 of the Law on Insurance Business 2022 stipulated that insurance companies, reinsurance companies, and foreign branches in Vietnam had to meet the following requirements to officially operate:
Clause 3, Article 1 of the amended Law on Insurance Business 2025 has completely changed this approach. Instead of having to “wait” for confirmation of eligibility, enterprises can now proactively carry out preparatory work such as:
In particular, the Law has abolished a series of rigid conditions that had to be met within 12 months before operation, instead empowering enterprises to make their own decisions and take responsibility for their actions.
Thus, the new regulations have removed a series of formal operating conditions for insurance companies within 12 months, shifting to post-auditing instead. This new regulation aims to implement Resolution No. 198/2025/QH15 on reducing and simplifying investment and business conditions for enterprises. Accordingly, removing the formal operating conditions within 12 months and shifting to post-auditing helps enterprises quickly enter the market, reduces the burden of compliance costs, and promotes dynamism for the entire insurance industry.
The new law has broken down the rigidity in the professional qualification requirements for Directors or General Managers, legal representatives of insurance companies, reinsurance companies, and foreign branches in Vietnam, expanding opportunities for executives with diverse backgrounds.
Furthermore, for the Chairman of the Board of Directors, Chairman of the Board of Members, members of the Board of Directors, and members of the Board of Members, while the previous regulation required at least “3 years in a managerial, executive, or supervisory position at an enterprise operating in the insurance, finance, or banking sector”, the new regulation only requires at least “3 years in a managerial, executive, or supervisory position at an organization operating directly in the insurance, finance, or banking sector”.
Thus, instead of the general requirement of experience at “enterprises operating in the insurance, finance, and banking sectors”, the new law emphasizes that personnel must have at least 3 years of experience at “organizations operating directly” in these sectors.
This regulation aims to implement Resolution No. 198/2025/QH15 on reducing and simplifying investment and business conditions for enterprises and removing difficulties and obstacles for enterprises regarding human resources, in line with the training realities of the Vietnamese market.
Previously, Clause 3, Article 87 of the Law on Insurance Business 2022 stipulated the registration of the method and basis for calculating insurance premiums for insurance products under life insurance, health insurance, and motor vehicle insurance. However, the new regulation in Point a, Clause 7, Article 1 of the amended Law on Insurance Business 2025 has amended and supplemented the regulations to clarify the cases requiring registration and notification of the method and basis for calculating insurance premiums:
This regulation aims to reduce administrative procedures and increase the proactive approach of non-life insurance companies and their branches in developing and designing products. Insurance companies can proactively seize opportunities to serve policyholders. It only requires specifying the conditions under which insurance companies can act and assume responsibility.
Insurance companies, reinsurance companies, and foreign branches in Vietnam must publicly disclose periodic, regular, and extraordinary information as stipulated in Articles 118, 119, and 120 of the Law on Insurance Business 2022.
At the same time, within 7 working days from the date of information disclosure, insurance companies, reinsurance companies, and foreign branches in Vietnam are responsible for notifying the Ministry of Finance about the content of the publicly disclosed information (Clause 3, Article 117 of the 2022 Law on Insurance Business).
However, this regulation was repealed by Clause 7, Article 2 of the amended Law on Insurance Business 2025. Therefore, currently, insurance companies are not required to notify the Ministry of Finance after disclosing information. This regulation aims to reduce procedures for insurance companies, insurance sub-companies, and foreign branches in Vietnam.
Clause 11 of Article 1 of the amended Law on Insurance Business 2025 has added clause 3a after clause 3 of Article 138 as follows:
“Insurance brokerage firms’ investments must ensure the principles of safety, liquidity, and efficiency; comply with legal regulations, and be solely responsible for their investment activities. Insurance brokerage firms are prohibited from investing in any form for shareholders, capital contributors, or persons related to shareholders or capital contributors as stipulated in the Law on Enterprise, except for deposits with shareholders or members who are credit institutions.”
Previously, the Law on Insurance Business 2022 and its implementing regulations did not contain provisions on investment by insurance brokerage firms. Therefore, some investment activities posed potential risks regarding the management and use of equity capital by insurance brokerage firms, impacting their financial situation. The addition of these regulations aims to ensure the safe and effective investment activities of insurance brokerage firms.
Previously, insurance companies, reinsurance companies, and foreign branches in Vietnam had to register with the Ministry of Finance the principle of separating equity capital and insurance premiums, and distributing surplus (Clause 1, Article 101 of the Law on Insurance Business 2022).
However, the amended Law on Insurance Business 2025 has clarified the procedures that must be carried out before implementing the separation of equity capital and insurance premiums, and the distribution of surplus, specifically:
The non-life insurance sector primarily offers short-term products with no surrender value, and 60-70% of premiums are reinsured. Separating capital and premium sources mainly serves corporate governance purposes. Therefore, simply notifying the Ministry of Finance for record-keeping and monitoring is sufficient; no response is required, as the Ministry of Finance will strengthen post-audits.
The amended Law on Investment 2025 reduced the list of conditional investment and business lines by 38, including insurance auxiliary services. Therefore, to ensure consistency, the amended Law on Insurance Business 2025 abolished the conditions for providing insurance auxiliary services in Article 143 of the Law on Insurance Business 2022.
The new list of conditional investment and business lines will take effect from July 1, 2026. Therefore, to ensure the consistency of the legal system, regulations related to the abolition of conditions for providing insurance auxiliary services in the Law on Insurance Business will also be applied from July 1, 2026 – the same time the amended Law on Investment comes into effect.
It is evident that the adoption of the amended Law on Insurance Business aims to remove bottlenecks arising in practice, especially the requirement to institutionalize the major policies in Resolution No. 68-NQ/TW and Resolution No. 198/2025/QH15 to create a transparent, stable, feasible business environment and minimize compliance costs for enterprises.
The above is an update on Vietnam’s amended Law on Insurance Business 2025: Compliance new regulations. If you have any related questions or require legal advice regarding insurance, please contact Viet An Law for the best consultation and support!
