The insurance market in Vietnam has become more competitive than ever, attracting foreign investors to inject more capital in this market. Foreign investors are also actively adopting a more forward-thinking and dynamic approach to stay ahead of the pack.
Economic growth, technological innovations, rising purchasing power and increasing consumer awareness about insurance products are key drivers of the insurance market in Vietnam.
The Vietnamese government’s effort of pushing the insurance penetration, especially for the uninsured Vietnamese is also one of the main reasons many foreign investors think this is a good time to invest in this surging insurance market in Vietnam.
This is the guide you need to help you set up an insurance brokerage company in Vietnam.
Overview of Insurance Market in Vietnam
Vietnam has embarked on a journey of rapid economic growth over the past decades, with steady expansion and significant poverty reduction transforming a huge part of the population into its current middle-class and middle-upper class status.
Today, Vietnam has one of the largest economies in Southeast Asia and this remarkable growth shows no sign of ceasing. Among the impressive development of many sectors, one sector is showing particularly profound results – the insurance sector.
According to the Insurance Supervisory Authority, the year 2020 is the sixth year that marks Vietnam’s insurance market achieving an outstanding growth rate of more than 20%.
In 2019, insurance companies in Vietnam collected a total premium of US$6.93 billion – a 20.5% year-on-year growth. Life insurance was the biggest winner with premiums collected hit US$4.66 billion while non-life premiums had US$2.26 billion.
Currently, the country has 66 insurance companies in total and these companies have reinvested US$16.29 billion into the insurance market in Vietnam.
How to Set up an Insurance Brokerage Company in Vietnam
The below criteria are compulsory to register an insurance brokerage company in Vietnam and obtain the operational license:
- An insurance brokerage company must include directors or executive offices
- All directors or executive offices have not been sanctioned in the insurance fields
- Members of the Board of Directors, members of the Members’ Council must all have a university or a higher degree
- Insurance brokers must have training certificate in insurance issued by legally recognized institutions
- A foreign company wishes to open an insurance company in Vietnam must have already operated at least 7 years in the insurance market
- Application form for registration
- Articles of Company
- 5-year business plan
- The president’s or chairperson’s identity card, passport, or other identification documents
- A list of founding shareholders or members, along with their identification documents
- Bank certification for capital deposits
- Cooperation contract
- Shareholder’s minutes of meeting
- Written authorisation for performing licensing procedures
- An official document stating the head office’s location
- A written commitment to satisfaction of the licensing conditions
- Submit application and relevant documents specified in Decree 73/2016/ND-CP.
- Contribute in cash for the capital. The legal capital is VND 4 billion for primary insurance or reinsurance brokerage companies or VND 8 billion for primary and reinsurance companies.
How Cekindo can Assist
Cekindo is backed by a team of well-experienced professionals, offering company setup service to our clients globally in the insurance market in Vietnam.
Our consultants’ expertise and professional approach are without a doubt commendable as we take time to understand your unique business requirements. We efficiently manage the establishment processes in support of preparing your company for future business endeavors.
At Cekindo, we are dedicated to helping your company in the insurance market in Vietnam to constantly move forward. Register your company in Vietnam now and enjoy the liberty to do business in this flourishing market.
Get in touch with us via the form below and we will handle all your queries very efficiently and promptly.