You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

January 22, 2026

Vietnam Eases Burdens and Extends Compliance Deadline for Insurance Businesses

Subscribe to Updates

On December 10, 2025, Vietnam’s National Assembly enacted Law No. 139/2025/QH15 amending the Law on Insurance Business. The amendment, effective from January 1, 2026, introduces various changes in an effort to lift restrictions and hurdles for insurance businesses. Key points that may impact the activities of stakeholders in Vietnam’s insurance market are highlighted below.

Management Personnel Qualifications

To broaden the talent pool while ensuring competency standards, the amended law opens up the positions of director or general director to more candidates. Previously, candidates were required to hold either (i) a university degree or higher in insurance or (ii) a university degree in another discipline and an insurance certificate issued by a qualified insurance training institution. Now, candidates holding a university degree or higher in economics, finance, banking, law, business administration, accounting, or auditing, with at least one insurance‑related module, are also accepted.

These changes are expected to mitigate the ongoing challenges faced by insurers in recruiting suitably qualified candidates for key executive positions, while still maintaining appropriate professional standards.

Fewer Registrations for Insurance Businesses

As part of the legislature’s broader initiative to reduce administrative burdens across all business sectors, the amended Law on Insurance Business relaxes registration requirements for the insurance industry, notably:

  • Insurance enterprises and foreign non‑life insurance branches are no longer required to register and obtain prior approval from the Ministry of Finance (MOF) for their methodologies and bases for calculating premiums for motor vehicle insurance products (excluding compulsory civil liability insurance for motor vehicle owners). Instead, insurance enterprises are now only required to notify the MOF before applying or amending these methodologies.
  • While life insurers must continue to register with the MOF their principles for separating owners’ equity from insurance premium funds, non‑life insurance enterprises and foreign non‑life insurance branches are now only required to notify (rather than register with) the MOF these principles prior to implementation.

Extended Compliance Milestones for Businesses’ Readiness

The risk‑based capital (RBC) regime, a capital adequacy framework requiring insurance businesses to maintain minimum capital levels proportionate to their risk exposures, was introduced in 2022 to replace the current fixed solvency margin framework, and was originally scheduled for full adoption in 2028. However, recognizing the technological and practical challenges faced by both insurers and regulators in implementing the RBC regime, the amended Law on Insurance Business has a phased timeline, drawing on Hong Kong’s experience where Hong Kong regulators allowed insurance businesses a three-year transitional period to prepare resources and upgrade their systems.

Core RBC requirements (including actual capital, risk‑based capital, and capital adequacy ratio) will apply from January 1, 2028, while supervisory intervention measures will only take effect from January 1, 2031. From 2028 to 2030, insurers will operate under a transitional period, during which they must monitor capital based on RBC principles and may adopt self‑directed capital‑increase plans if shortfalls arise.

This extended deadline allows insurers additional time to upgrade systems, remedy data and accounting gaps, and prepare for full RBC compliance, enhancing stability and regulatory certainty.

Insurance Agent Certifications Extended by Six Months

The deadline for insurance agent certificates issued before January 1, 2023, to be converted to the new standardized certificates was originally December 31, 2025. The amended law allows these certificates to remain valid for an additional six months, until June 30, 2026. This extension provides insurers with needed time to compile, review, and standardize documentation for its insurance agents, addressing longstanding inconsistencies in historical records and easing the operational burden of processing a large volume of certificates.

Outlook

With the amended Law on Insurance Business now in effect, insurers and stakeholders should begin assessing how the revised qualification standards, reduced administrative procedures, phased RBC implementation, and extended insurance agent certificate transition will affect their operations.

Related Professionals

Industries

Insurance

Location

RELATED INSIGHTS​ 

September 15, 2026
Insurance specialists from Tilleke & Gibbins in Bangkok have contributed the updated Thailand chapter to the newly released 2026 edition of Thomson Reuters’ Practical Law guide to insurance and reinsurance. The Thailand chapter offers a comprehensive Q&A-style overview of the legal and regulatory framework governing insurance and reinsurance in the country. It provides key insights for businesses, insurers, reinsurers, and intermediaries operating in or entering the Thai market. Key topics covered include: Market structure and common types of insurance Regulatory framework and oversight by the Office of Insurance Commission (OIC) Authorisation requirements for insurers, reinsurers, and intermediaries Ownership restrictions and foreign investment rules Corporate governance, capital requirements, and solvency obligations Reinsurance arrangements, including fronting, risk transfer, and common contractual clauses Policy content requirements, standard clauses, and consumer protections Claims procedures, statutory time limits, and subrogation rights Dispute resolution mechanisms, including OIC arbitration and court proceedings Insolvency protections for policyholders Tax treatment of insurance and reinsurance businesses in Thailand Recent legal developments, including updated OIC regulations and insurance licensing guidelines The 2026 edition reflects Thailand’s evolving regulatory environment, including ongoing legislative reforms to strengthen corporate governance, risk-based capital requirements, and digital media compliance in the insurance sector. It also highlights practical considerations for foreign insurers, reinsurers, and intermediaries seeking to participate in Thailand’s insurance market. Tilleke & Gibbins contributes regularly to the Practical Law series of guides for various jurisdictions in Southeast Asia, providing trusted legal insight for multinational companies. Access the full Thailand chapter below. Reproduced from Practical Law with the permission of the publishers. For further information, visit practicallaw.com.
Read More
August 20, 2026
As part of its membership in Lex Mundi, Tilleke & Gibbins has released the latest edition of its Guide to Doing Business in Thailand, providing an overview of the legal, regulatory, and commercial considerations for companies establishing or expanding operations in Thailand. The 2026 edition offers practical insight into the country’s business environment, investment framework, and operational requirements. The guide covers a wide range of topics relevant to foreign and domestic investors, including: Investment incentives and promotion schemes Financial facilities and banking regulations Exchange controls and money transfers Import and export regulations Business structures and incorporation options Requirements for establishing a business Operational and compliance considerations Business cessation and insolvency procedures Employment and labor laws Taxation Immigration and visa requirements Prepared by Tilleke & Gibbins lawyers across multiple practice areas, the publication outlines key aspects of doing business in Thailand, including foreign investment restrictions, regulatory compliance obligations, corporate structures, employment requirements, and recent legal and economic developments affecting investors. The publication forms part of Lex Mundi’s Country Guides series, a global collection of jurisdiction-specific reference materials prepared by member firms around the world. Together, these guides help companies evaluate opportunities, compare regulatory environments, and plan international business activities across multiple markets. The full Guide to Doing Business in Thailand 2026 is available through the button below.
Read More
August 14, 2026
Thailand’s Office of the Insurance Commission (OIC) has issued guidelines clarifying the boundaries between permissible and prohibited activities for unlicensed individuals—including influencers, bloggers, and content creators—when communicating about insurance products on social media. The Good Practice Guidelines for Persons Not Licensed as Insurance Agents or Brokers Regarding the Dissemination of Insurance Content Through Digital Media B.E. 2569 (2026) took effect on July 24, 2026. Activities Requiring a License The guidelines reserve the following activities for licensed agents and brokers: Soliciting or facilitating insurance contracts. Providing personalized advice on product suitability. Recommending policy cancellation to purchase promoted products. Creating links that facilitate contract formation. Receiving performance-based compensation tied to policies or premiums generated. Importantly, boilerplate disclaimers such as “this is not a recommendation to buy insurance” will not shield individuals from liability if the OIC views the content as personalized advice or solicitation. Permitted Activities Unlicensed persons may present general educational content about insurance—such as explaining terminology, sharing industry statistics, reporting news, or sharing personal experiences—provided the content does not target specific individuals to purchase from specific companies. The guidelines also set out best practices for communication, including presenting information in a fair and balanced manner that covers both benefits and limitations, encouraging consumers to read policy terms and consult licensed professionals, verifying information from credible sources before dissemination, and exercising special care when the audience may include vulnerable groups such as persons aged 60 and older. Prohibited Practices Prohibited practices include fear-based marketing, creating artificial urgency, omitting material limitations, making exaggerated claims, falsely claiming professional credentials, using fake engagement mechanisms, and sharing false or misleading content. The guidelines also reinforce the prohibitions under section 83 of the Life Insurance Act B.E. 2535 and section 78 of the Non-Life Insurance Act B.E. 2535 against soliciting insurance contracts with foreign operators
Read More
June 30, 2026
Tilleke & Gibbins’ insurance specialists in Bangkok provided Thomson Reuters’ latest country update on Thailand’s regulatory framework for the insurance industry. The country update, which is part of Thomson Reuters’ extensive Regulatory Intelligence offerings, contains information and guidance for insurers active in the Thai market. The guide covers the following topics in detail: Permission to operate; Legal and regulatory considerations for domestic and international insurers; Capital reserve requirements; Investment management and markets; The Office of Insurance Commission’s arbitration system for handling complaints; Creditor hierarchy; Rehabilitation of non-life insurance companies; and Personal data protection requirements for insurers. Thomson Reuters Regulatory Intelligence is a service that provides with curated news, analysis, and data across jurisdictions to help legal, risk, and compliance professionals manage compliance and mitigate global risk. The full Thailand insurance country update is available by subscription to Regulatory Intelligence on the Thomson Reuters website.
Read More