Vietnam - government puts a leash on foreign reinsurance
Monday, 07 18 2016, Category: Insurance and Reinsurance, Country: Asia
Foreign insurers operating in Vietnam are no longer allowed to transfer their entire premium collected in the country to their mother companies through overseas reinsurance contracts.
The newly issued a decree guiding the implementation of the Vietnamese Law on Insurance, dated July 1, 2016, proclaims that foreign firms can now only reinsure up to 90 per cent of their total insurance liability.
Earlier, there was no ceiling rate on reinsurance liability.