Insurance and reinsurance in Vietnam: overview | Practical Law

Once an insurer is in the stage of insolvency, it must immediately report its financial status and reasons for insolvency to the MOF. The stage of insolvency is when the insurer’s solvency margin is below the statutory thresholds (see Question 13 ). During this stage, the insurer must work out a plan to overcome its financial difficulties, which must be approved by the MOF. If the insurer does not become solvent in accordance with the approved plan, then the MOF will issue a decision on the establishment of a Solvency Control Committee to directly monitor the insurer’s measures to become solvent. If the insurer is still insolvent but can still pay outstanding debts, then it may be dissolved. Otherwise, it must undergo bankruptcy proceedings as provided for under the Law on Bankruptcy of 2014.