THE MINISTRY OF FINANCE
--------
|
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
---------------
|
No.: 195/2014/TT-BTC
|
Hanoi, December 17, 2014
|
CIRCULAR
GUIDING ON ASSESSING AND RANKING
INSURERS
Pursuant
to the Law on Insurance Business No. 24/2000/QH10 dated December 9, 2000;
Pursuant
to the Law on the amendments to a number of articles of the Law on Insurance
Business No. 61/2010/QH12 dated November 24, 2010;
Pursuant
to the Decree No. 45/2007/ND-CP dated March 27, 2007 of the Government
detailing the implementation on some articles of the Law on Insurance Business;
Pursuant to the Decree No. 46/2007/ND-CP dated March 27,
2007 of the Government providing for the financial regulations to insurers and
insurance brokers;
Pursuant to the Decree No. 123/2011/ND-CP dated December 28,
2011 of the Government detailing the implementation on some articles of the Law
on amendments to a number of articles of the Law on Insurance Business and
Decree No. 45/2007/ND-CP dated March 27, 2007 of the Government
detailing the implementation on a number of articles of the Law on Insurance
Business;
Pursuant
to the Decree No. 215/2013/ ND-CP December 23, 2013 of the Government
stipulating functions, tasks, powers and organizational structures of the
Ministry of Finance.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
At the
request of the Director of the Insurance Supervisory Authority;
The
Minister of the Ministry of Finance promulgates the Circular guiding on
assessing and ranking the insurers.
Article 1. The governing scope
This
Circular provides guidance on assessing and ranking non-life insurers, health
insurers, life insurers, reinsurers and branches of foreign non-life insurers
which are licensed and legally operating in Vietnam (hereafter referred to as
insurers).
Article 2. Regulated entities
1.
Non-life insurers, health insurers, life insurers, reinsurance companies and
branches of foreign non-life insurers which are licensed and legally operating
in Vietnam (hereafter referred to as non-life insurers).
2. Life
insurers that are licensed and legally operating in Vietnam (hereafter referred
to as life insurers).
3.
Organizations and individuals relating to ranking and assessment of the
insurers.
Article 3. Purposes of ranking and assessing insurers
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2. The
Ministry of Finance shall supervise insurers following the contents as define
in Clause 1 this Article; to take appropriate measures to ensure the insurers
and the insurance market to operate safely, effectively and stably.
Article 4. Assessing insurers
1.
Criteria for assessing insurers
Insurers
shall assess themselves according to the following criteria:
1.1
Non-life insurers perform the assessment according to criteria for assessing
non-life insurers prescribed in Appendix 1 issued together with this Circular
and the grading scale and method prescribed in Appendix 2 issued together with
this Circular.
1.2 Life
insurers perform the assessment according to criteria for assessing life
insurers prescribed in Appendix 4 issued together with this Circular and the
grading scale and method prescribed in Appendix 5 issued together with this
Circular.
2.
Grading scale and grading method
2.1 With
regard to non-life insurers:
a)
Criteria for assessing the solvency, the operational reserves and the business
effectiveness based on the grading scale of each criterion.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Level
A: from 200 to 300
- Level
B: under 200
c)
Criteria for assessing the capital, quality of assets and financial investment
based on the grading scale, maximum score and deductions (if any) of each criterion.
The maximum score of this group of criteria is 500, including:
- Level
A: from 400 to 500
- Level
B: under 400
d)
Criteria to assess the business administration and transparency of information based
on the grading scale, maximum score and deductions (if any) of each criterion.
The maximum score of this group of criteria is 200, including:
- Level
A: from 100 to 200
-Level B:
under 100
2.2. With
regard to life insurers:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
b)
Criteria for assessing the insurance operation activities based on the grading
scale, maximum score and deductions (if any) of each criterion. The maximum
score of this group of criteria is 300, including:
- Level
A: from 250 to 300
- Level
B: from 200 to below 250
- Level
C: from 100 to below 200
- Level
D: under 100
c)
Criteria for assessing capital, quality of assets and the business
effectiveness based on the grading scale, maximum score and deductions (if any)
of each criterion. The maximum score of this group of criteria is 500,
including:
- Level
A: from 450 to 500
- Level
B: from 350 to below 450
- Level
C: from 250 to below 350
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
d)
Criteria for assessing the business administration and transparency of
information based on the grading scale, maximum score and deductions (if any)
of each criterion. The maximum score of this group of criteria is 200,
including:
- Level
A: from 150 to 200
- Level
B: from 100 to below 150
- Level
C: from 50 to below 100
- Level
D: under 50
Article 5. Ranking insurers
Pursuant
to Article 4 of this Circular and the assessment results, the insurers shall
rank as follows:
1. With
regard to non-life insurers:
1.1 Group
1: non-life insurers that ensure the solvency and earn profits from insurance
business other than reinsurance for 02 consecutive years, including:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
b) Group
1B: Non-life insurers that ensure the solvency and earn profits from insurance business
other than reinsurance business for 02 consecutive years; the total score of
groups of criteria is below 700.
1.2. Group 2: non-life insurers that ensure the solvency
and fail to earn profits from the insurance business other than reinsurance
business for 02 consecutive years, including:
a) Group
2A: non-life insurers that ensure solvency and fail to earn profits from the insurance business other than reinsurance
business for 02 consecutive years, the total score of all criteria is
over 700 and all groups of criteria are ranked A.
b) Group
2B: non-life insurers that ensure the solvency and fail to earn profits from the insurance business other than reinsurance
business for 02 consecutive years, the total score of all criteria is
under 700.
1.3. Group
3: non-life insurers at risk of insolvency, including non-life insurers whose
solvency margin ratios are insufficient or the provision fail to meet the
criteria prescribed in Appendix 1 issued together with this Circular.
1.4.
Group 4: non-life insurers that go insolvent and are put under the special
control, including non-life insurers in group 3, and fail to regain the
solvency as requirements of the Ministry of Finance.
2. Life
insurers
2.1.
Group 1: life insurers that ensure the solvency, including:
a) Group
1A: life insurers that ensure the solvency, the total score of all criteria is
over 850 and all groups of criteria are ranked A.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
c) Group
1C: life insurers that ensure the solvency, the total score of all criteria
from 400 to below 650, have at least 01 group ranked C and none of them ranked
D.
d) Group
1D: life insurers that ensure the solvency are not classified into group 1A, 1B
or 1C.
2.2. Group 2: life insurers that are not classified into
group 2 prescribed in point a (iii) Clause 5 Section III Decision No. 1826/ QD-TTg.
2.3.
Group 3: life insurers that are at risk of insolvency, including life insurers
whose solvency margin ratios are insufficient or the provision fails to meet
the criteria prescribed in Appendix 1 issued together with this Circular.
2.4 Group
4: life insurers that are at risk of insolvency are put under the special
control, including life insurers ranked in group 3 and fail to regain the
solvency as requirements of the Ministry of Finance.
Article 6. Measures
1.
Responsibilities of insurers:
1.1. Take
the initiative in maintaining the score or maximum score (if any) of each
criterion:
a) With
regard to non-life insurers: In the case insurers fail to maintain the score or
maximum score (if any) of each criterion prescribed in Appendix 2 in this
Circular, they shall take the measures in the Appendix 3 in this Circular and
solvency recovery measures under laws.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1.2.
Submit reports to the Ministry of Finance prescribed in Article 7 in this Circular.
1.3. Take
the measures prescribed in Clause 2 in this Article of the Ministry of Finance.
2.
Responsibilities of the Ministry of Finance:
In
consideration of the results of insurer rankings prescribed in Article 5 in
this Circular, the Ministry of Finance implement one or several management,
supervision measures as follows:
2.1. With
regard to non-life insurers:
a) With
regard to non-life insurers in group 1A, the Ministry of Finance shall:
- Encourage them to expand the content, scope and area;
- Carry
out remote supervision.
b) With
regard to non-life insurers in group 1B, the Ministry of Finance shall:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
-
Supervise non-life insurers implementing the measures
to ensure the grading scale and maximum score (if any) of each criterion;
- Direct
non-life insurers to strengthen the internal control and inspection; check the
network and organizational structure;
- Allow expansion of the business scope and scale
ensuring the effectiveness, fair competition and conformity with applicable
regulations.
c) With
regard to non-life insurers in group 2A:
Besides
taking the management and supervision measures provided for in point 2.1 (b)
Clause 2 in this Article, the Ministry of Finance shall:
- Warn
the non-life insurers and investors about the non-life insurers’ status;
- Direct
non-life insurers to increase charter capital (if necessary); check the
effectiveness, safety and liquidity of assets to restructure the investment
activities appropriately;
- Direct non-life insurers to review and amend
regulations, clauses, charges for insurance products to ensure the financial
safety of enterprises and the interests of customers; adjust reinsurance
programs (if necessary);
- Direct
non-life insurers to reassess the effectiveness of the management procedures,
professional procedures, and internal inspection and control;
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Carry
out thematic inspections at the premises non-life insurers.
d) With
regard to non-life insurers in group 2B:
Besides
taking the management and supervision measures provided for in point 2.1 (b, c)
Clause 2 in this Article, the Ministry of Finance shall:
- Inspect
non-life insurers;
- Reduce
the business scope of any insurer that fails to earn profits from insurance
business after 24 months.
dd) With
regard to non-life insurers in group 3:
The
Ministry of Finance shall take the measures prescribed in Article 80 of the Law
on Insurance Business.
e) With
regard to non-life insurers in group 4:
The
Ministry of Finance shall revoke Licenses of establishment and operation of
non-life insurers in accordance with point e Clause 1 Article 68 of the Law on
Insurance Business.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
a) With
regard to life insurers in group 1A, the Ministry of Finance shall:
-
Encourage them to expand the content, scope and area;
- Carry
out remote supervision.
b) With
regard to life insurers in group 1B, the Ministry of Finance shall:
- Direct
the life insurers to report causes and perform measures for ensuring grading
scale, maximum score (if any) of each criterion;
-
Supervise life insurers to perform measures for ensuring grading scale, maximum
score (if any) of each criterion.
c) With
regard to life insurers in group 1C:
Besides
taking the management and supervision measures provided for in point 2.2 (b)
Clause 2 in this Article, the Ministry of Finance shall:
- Warn
the life insurers and investors of the life insurers’ status;
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Allow
the expansion of business scope and scale if life insurers with groups of criteria
for assessment of capital, asset quality, and effectiveness ranked B. d) With
regard to life insurers in group 1D:
Besides
taking the management and supervision measures provided for in point 2.2 (b. c)
Clause 2 in this Article, the Ministry of Finance shall carry out inspections
at the life insurers’ premises.
dd) With
regard to life insurers in group 3:
The
Ministry of Finance shall take the measures prescribed in Article 80 of the Law
on Insurance Business.
e) With
regard to life insurers in group 4:
The
Ministry of Finance shall revoke License of establishment and operation of life
insurers pursuant to point e Clause 1 Article 68 of the Law on Insurance
Business.
Article 7. Reporting policy
1. Within
90 days from the end of the preceding financial year, every insurer shall
report the results of the assessment, rankings and the measure performance
prescribed in Article 6 of this Circular to the Ministry of Finance depending
on the business performance, business administration, risk management, the
financial statement ascertained by an independent auditor of the preceding
financial year.
2. Any
insurer at risk of insolvency shall follow the reporting regulations prescribed
in Article 78 of the Law on Insurance Business.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1. This
Circular shall take effect from February 1, 2015.
2. This Circular replaces Decision No. 153/2003/QD-BTC dated September 22, 2003 of the Ministry of
Finance issuing system of criteria for monitoring insurers.
3. Any
issue or difficulty that arises during the implementation of this Circular
should be reported to the Ministry of Finance for timely solution./.
PP MINISTER
VICE MINISTER
Tran Xuan Ha
APPENDIX 1
NON-LIFE INSURANCE ENTERPRISE ASSESSMENT INDICATOR
(Issued with Circular No.195/2014/TT-BTC dated 17/12/2014 of the Ministry of
Finance)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1. Solvency margin ratio
indicator
a) Method of calculation:
x =
Solvency
margin (A)
Minimum
solvency margin (B)
Data source:
(A): In accordance with the
provisions in Article 16 of Circular No. 125/2012/TT-BTC dated 30/7/2012 of the
Ministry of Finance guiding the financial system to the insurance enterprises,
re- insurance enterprises, insurance brokerage enterprises and branches of
foreign non-life insurance enterprises (hereafter referred to as Circular No.
125/2012/TT-BTC).
(B): In accordance with the
provisions in Article 15 of Circular No. 125/2012/TT-BTC
b) Meaning:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
c) Amplitude: x ≥ 1
d) Analysis of causes
why the indicator are beyond the amplitude:
- Owner’s equity and financial
investment;
-
Business scale, insurance business performance and retention level;
- Restriction of financial management,
operation risk management and insurance and re-insurance claim.
- Restriction of corporate
management: competence of management staff; internal inspection and control;
compliance with operational procedures issued by the enterprise.
- Other factors.
2. Indicator of provision for
insurance operation.
a) Method of assessment:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
b) Meaning:
These indicator assess the adequacy
of provision for insurance operation by the methods approved by the Ministry of
Finance in order to meet the liabilities committed to customers.
c) Analysis of causes why
the indicator fail to meet the regulations of law:
- Combined assessment of solvency
margin ratio indicator over the minimum solvency margin and combined ratio.
- Management and monitoring of
statistical data of information of claim dossiers.
- Other causes.
3. Indicator of combined ratio
a) Calculation formula:
x = Claim ratio (x1) +
Insurance business operation cost ratio (x2)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
x1
=
Total
insurance claim expenditure under the retention responsibility (A)
Net
premium revenue (B)
x2
=
Total
costs of business activities (C)
Net
premium revenue (B)
Data source:
(A): Code 15 – Report on result of
business performance (excluding the claim expenditure used from the major
fluctuation provision fund).
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(C): (Code 17 + Code 26 -
Code 04) - Report on result of business performance. For newly-established
enterprises and newly put into operation, in the first 03 year, (C) does not
include the costs of establishment and network development.
b) Amplitude: x <
100%
c) Meaning:
These indicator assess the
enterprise’s profit/loss of insurance business.
d) Analysis of cause the
indicator are beyond the amplitude:
- Scale and scope of business;
- Review and receipt of insurance,
settlement of insurance claim.
- Receipt and retrocession of
insurance.
II. GROUP OF ASSESSMENT
INDICATOR OF INSURANCE OPERATION
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
a) Method of calculation:
x =
Net
premium revenue of this year (A)
-
Net premium revenue of the previous year (B)
Net
premium revenue of the previous year (B)
Data source:
(A), (B): Code 03 - Report on
result of business performance
b) Amplitude: -10% ≤
x ≤ 30% (not applicable to enterprises operating in the first three years).
c) Meaning:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
d) Analysis of causes why the
indicator are beyond the Amplitude:
- Considering the correlation with
the following indicator: The solvency margin ratio indicator over the minimum
solvency margin and combined ratio; combined ratio indicator; capital indicator
commensurate with the scale of operation;
- Assessing the impact of change in
enterprise’s policy on expansion/narrowing of operation scope; risk management;
re-insurance; state policy on encouragement/limited deployment of insurance
products, ...
- Other causes.
2. Premium debt ratio indicator
over total original premium
a. Method of calculation:
x =
Original
premium receivable (A)
Original
premium (B)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(A): Explanation of financial
Statement
(B): Code 01.1 - Report on business
result
b. Amplitude: x ≤ 20%
c) Meaning:
These indicator assesses the
enterprise’s appropriation level of premium and quality of insurance business.
d) Analysis of causes why the
indicator are beyond the amplitude:
- Combination with assessment: The
solvency margin ratio indicator over the minimum solvency margin and combined
ratio; appropriation ratio of provision indicator of bad debt; fluctuation
trend of the original claim ratio and original premium revenue.
- The enterprise’s policy on
insurance business (subjects as customers), debt of premium, collection of
premium through agent, broker,....
- Capacity of business and risk
management, relationship with customers, impact of competition, debt management
capacity,...
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
3. Assessment indicator of quality of claim settlement
a) Method of calculation: Including
2 indicators
a1. Unsettled claim dossier
ratio indicator
x1
=
Number
of unsettled claim dossier at the end of financial year (A)
Total
dossier requiring claim to be settled in the year (B)
Data source:
(A), (B): As reported by
enterprise.
a2. Indicator of average time
to settle the claim dossier
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Total
time for claim settlement of settled dossiers in the year (A)
Total
settled claim requiring dossiers in the year (B)
Data source:
(A), (B): As reported by enterprise
(from the time of full receipt of dossiers).
b) Amplitude:
x1 ≤ 15 days/dossier
x2 is calculated
from the date of having adequate claim dossiers and applied to each operation
group as follows:
No.
Insurance
operation
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1
Motor vehicle insurance
x2 ≤ 15 days
2
- Health insurance
- Responsibility insurance
x2 ≤ 30 days
3
Other insurance operations
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
c) Meaning:
These indicators indicate the quality of claim settlement
d) Analysis of causes why the
indicator are beyond the amplitude:
- Combined indicator analysis:
combined ratio; ratio of change in net premium revenue; quality of management
and operation staff; organization of internal control and audit.
-
Procedure for claim settlement and arrangement of officer for claim settlement.
- Other causes.
III. GROUPS OF ASSESSMENT
INDICATOR OF CAPITAL, ASSETS QUALITY AND FINANCIAL INVESTMENT
1. Owner’s equity indicator
commensurate with the scale of operation
a) Method of assessment:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Assessing the appropriation of
required reserve fund in accordance with the provisions in Clause 97 of the Law
on Insurance Business.
- Assessing the management of
owner’s equity in accordance with the provisions in Article 5 of Circular No.
125/2012/TT-BTC .
b) Meaning:
These indicators assess the
management of owner’s equity and commensuration level between the owner’s
equity with the enterprise’s operational scale and scope in accordance with
regulation of law.
c) Analysis of causes why the
indicator do not meet the regulations of law:
- Combined assessment of solvency
margin ratio indicator over the minimum solvency margin and combined ratio.
- Policy on expansion of enterprise’s
scope of activities, operations and new insurance products.
- Other causes.
2. Indicator of change of
owner’s equity
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
x =
Owner’s
equity of this year (A) - Owner’s equity of the previous year (B)
Owner’s
equity of the previous year (B)
Data source:
(A), (B): Code 400 - Balance sheet
b) Amplitude: x
≥ -15% (not applicable to enterprises operating in the first three years).
c) Meaning:
These indicators assess the change of
enterprise’s owner’s equity and indicates the enterprise’s financial capacity
towards more improved or worse.
d) Analysis of causes why the
indicator are beyond amplitude:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Assessment of fluctuation of
indicator in the previous three consecutive years to identify trends and causes
increase or decrease.
- Other factors: policy on profit
distribution,...
3. Indicator of total premium
over owner’s equity
a) Method of calculation:
x =
Total
premium (A)
Owner’s
equity (B)
Data source:
(A): Code 01.1 + Code 01.2 - Report
on result of business performance
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
b) Amplitude: x ≤
500%
c) Meaning:
These indicators assess the adequacy
of owner’s equity with the total insured liabilities without considering the
assistance from the re-insurer. The greater the indicators are, the greater the
requirements for capital to deal with the unusual fluctuations of loss are.
d) Analysis of causes the
causes are beyond the amplitude:
-
Combined assessment of indicator: solvency margin ratio indicator over
the minimum solvency margin; compliance with regulations of law on provision for
insurance operation; combined ratio; change in net premium revenue.
- Assessment of fluctuation of
indicator in the previous 3 consecutive years to identify trends and causes
increase or decrease.
- Causes related to the
implementation of plan for expansion of scope of business operation....
- Other causes.
4. Indicator of short-term
liability over the liquid assets
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
x =
Short-term
liability (A)
Cash
and cash equivalents (B) + Deposit with term (C)
Data source:
(A): (Code 310 – Code 329) -
Balance sheet (Short-term liability after calculation of provision)
(B): Code 110 - Balance sheet
(C): As reported by enterprise
(excluding deposits not to be withdrawn before maturity)
b) Amplitude: x ≤
100%
c) Meaning:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
d) Analysis of causes why the
indicator are beyond the amplitude:
- Identification of proportion of
items: payable to customers, internal payable and other payables in the total
liabilities payable of the enterprise.
- Upon assessment in combination
with assessment of solvency margin ratio indicator over the minimum solvency
margin; proportion of cash and cash equivalents over the enterprise’s total
assets.
- Assessment of fluctuation of
indicator in the previous 3 consecutive years to identify trends and causes
increase or decrease.
- Assessment of influence of enterprise’s
policy on liability management and cash management .
-
Monitoring, comparison and complete payment of all liabilities.
- Other causes.
5. After-tax profit margin
indicator over owner’s equity
a) Calculation formula:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
After-tax
profit (A)
Owner’s
equity (B)
Data source:
(A): Code 60 – Report on result of
business performance. For newly-established and operating enterprises, during
the first 3 years, the costs of establishment and network development are
excluded.
(B): Code 400 – Balance sheet
b) Amplitude: x >
5%
c) Meaning:
These indicator assess the
profitability of owner’s equity.
d) Analysis of causes why the
indicator are beyond the amplitude:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Assessment of business
performance result of insurance and re-insurance operations affecting the
indicator.
- Other causes.
6. Indicator of ratio of overdue debt from 1 year or more over owner’s
equity
a) Calculation formula:
x =
Overdue debt from 1 year or more (A)
Owner’s equity (B)
Data source:
(A): As reported by the enterprise
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
b) Amplitude: x ≤ 5%
c) Meaning:
These indicators assess the risks of
bad debts affecting the owner’s equity, indicate the enterprise’s unrecoverable
capital appropriation level. These indicators also indicate the enterprise’s
debt management capacity as well as the compliance with regulations of law on
management and settlement of liabilities.
d) Analysis of causes why the
indicator are beyond the amplitude:
- Identification of proportion of
enterprise’s bad debt over the total debts receivable.
- Combined assessment: indicator of
debt receivable over the owner’s equity; ratio of provision for bad debts,
fluctuation trend of original claim ratio and original premium revenue
affecting the capacity for allocating the capital for insurance claim upon the
increased risk of capital appropriation.
- Assessment of fluctuation of indicator
in the previous three consecutive years to identify trends and causes increase
or decrease.
- Assessment of influence of
enterprise’s policy on liability management and cash management .
- Monitoring, comparison and urging
the complete recovery of debts receivable.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
7. Indicator of ratio of
provision for bad debts
a) Method of calculation:
x =
Amount
of provision for bad debts (A)
Bad
debts (B)
In which:
A, B: Enterprise’s report or
explanation of financial statement.
b) Method of assessment: Compliance
with regulations of law on ratio of provision for bad debt receivable.
c) Meaning:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
d) Analysis of causes why the
indicator are beyond the amplitude:
- Combined assessment: criteria for
debt receivable over the owner’s equity.
- Monitoring, comparison and urging
the complete recovery of debts receivable.
- Other causes.
8. Indicator of compliance with
laws on principle and structure of investment
a) Method of assessment:
-
The list of investment capital and structure of portfolio in accordance with
the provisions in Article 11, 12 and 13 of Circular No. 125/2012/TT-BTC and the
amended or added documents (if any).
- Comparing the compliance with the
provisions in Article 11, 12 and 13 of
Circular No. 125/2012/TT-BTC and the amended or added documents (if any) on
principle and portfolio structure.
b) Meaning:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
c) Analysis of causes why the
indicator do not comply with law:
- Combined assessment of solvency
margin ratio indicator over the minimum solvency margin, return on investment
and ratio of provision for devaluation of investment asset.
- Enterprise’s compliance with
investment policy.
- Other causes.
9. Indicator of return of
investment
a. Method of calculation:
x =
Profit
from financial activities (A)
0,5
x (Total of investment assets at the beginning of period + Total of
investment assets at the end of period) (B)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
A: Explanation of financial
statement
B: (Code 120 + Code 240 + Code 250
+ Code 218.1) – Balance sheet
b. Amplitude: 4,5%
< x ≤ 15%
c) Meaning:
These indicators assess the
enterprise’s financial investment performance and indicate the quality of
portfolio.
d) Analysis of causes why the
indicator are beyond the amplitude:
- Combined assessment of indicator
of compliance with law on investment capital and investment limit;
- Change in enterprise’s investment
policy, change in enterprise’s capital and operational scale affecting the
financial investment,….
- Other causes.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
a. Method of calculation:
x =
Amount
of provision for devaluation of each type of investment asset (A)
Value
of respective investment asset(B)
Data source:
(A), (B): Enterprise’s report or
explanation of financial statement.
b) Method of assessment: Compliance
with regulations of law on ratio of provision of each asset.
c) Meaning:
Assessment of quality of investment
assets and compliance with regulations of law on ratio of provision.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Combined assessment of indicator
of compliance with law on investment capital and investment limit;
- Change in enterprise’s investment
policy, change in enterprise’s capital and operational scale affecting the
financial investment,….
- Other causes.
IV. GROUP OF ASSESSMENT
INDICATOR OF CORPORATE GOVERNANCE AND INFORMATION TRANSPARENCY
1. Indicator of organizational
structure
a) Method of assessment:
- Table of description of
enterprise’s organizational structure.
- List of title of management and
operation: Name, qualifications, insurance certificate and diploma, working
experience in insurance and the field in charge.
- Comparing the satisfaction of
conditions of each title in accordance with the provisions in Articles 23, 24,
25, 26, 27, 28, 29 and 34 of Circular No. 124/2012/TT-BTC dated
30/7/2012/TT-BTC of the Ministry of Finance guiding the implementation of some
articles of Decree No. 45/2007/ND-CP dated 27/3/2007 of the Government
detailing the implementation of some articles of the Law on insurance business
and Decree No. 123/2011/ND-CP dated 28/12/2011 of the Government detailing the
implementation of some articles of the Law amending and adding some articles of
the Law on insurance business (hereafter referred to as Circular No.
124/2012/TT-BTC) and the amended or added documents (if any).
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Assessment of compliance with laws
on contingent of management and operation officers.
c) Analysis of causes why the
indicator do not comply with law:
- Combined assessment of indicator
of combined ratio, solvency margin ratio over the minimum solvency margin,
after-tax profit margin over the owner’s equity and return on
investment.
- Enterprise’s human resource
policy.
- Other causes.
2. Indicator of management and
operation and information transparency
a) Method of
assessment:
- Description of
organizational apparatus of division of internal inspection, control and audit;
independence, function, number of officers, description of experience and diploma
of each officer.
-
of method for internal inspection, control and audit.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
+ Implementation frequency;
+ Assessment opinions of
relevant divisions and relevant individuals during the implementation.
- Comparing the internal
inspection, control and audit with the provisions in Article 36 of Circular No.
124/2012/TT-BTC , Article 31 of Circular No. 125/2012/TT-BTC , Article 15 of
Decree No. 2007/ND-CP dated 27/3/2007 of the Government detailing the
implementation of some articles of the Law on insurance business and Article 35
of Decree No. 46/2007/ND-CP dated 27/3/2007 of the Government providing for the
financial system to the insurance enterprises and insurance brokerage
enterprises.
- Implementation of report from the
provision calculating expert and solvency margin to the Board of Directors,
Board of Executives as prescribed by law;
- Compliance with regulation
on prescribed information publicity to the enterprises such as publicity of
year-end financial statement, changes in location of head office, branch,
representative office,…a as prescribed by law;
b) Meaning:
Assessment of compliance with
regulations of law on enterprise’s internal inspection, control and audit.
c) Analysis of causes why the
indicator do not comply with law:
- Combined assessment of indicator
of combined ratio, solvency margin ratio over the minimum solvency margin,
after-tax profit margin over the owner’s equity and return on
investment.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
APPENDIX 2
TABLE OF AMPLITUDE, METHOD OF CALCULATION OF
ASSESSMENT INDICATOR SCORE TO NON-LIFE INSURANCE ENTERPRISES
(Issued with Circular No.195/2014/TT-BTC dated 17/12/2014 of the
Ministry of Finance)
No.
Indicator
Amplitude/
Method
of assessment
Maximum
score
Minus
score
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
I
GROUP OF ASSESSMENT INDICATOR
OF SOLVENCY, OPERATIONAL PROVISION AND INSURANCE BUSINESS PERFORMANCE
The assessment indicator decide
the grouping of non-life insurance enterprises under Decision No.
1826/QD-TTg .
1
Solvency margin ratio indicator
x ≥ 1
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
If these indicators are beyond
the amplitude or failure to comply with regulations of law, the non-life
insurance enterprises are classified in group 3.
2
Indicator of insurance operation
provision
Compliance with provisions in
Article 7 of Circular No. 46/2007/ND-CP and Article 8 of Decree No.
46/2007/ND-CP .
No
score
3
Combined ratio indicator
x < 100%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
If these indicators are beyond the
amplitude for 02 consecutive years but still ensure the indicator I.1 and
I.2, the non-life insurance enterprises are classified in group 2.
II
GROUP OF ASSESSMENT INDICATOR
OF INSURANCE OPERATION
300
1
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- 10% ≤ x ≤ 30%
(Not applicable to the non-life
insurance enterprises operating in the first 03 years).
No
score
2
Premium debt ratio indicator over
total original premium
x ≤ 20%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- If 20% < x ≤ 22%: minus 50
points
- If 22% < x ≤ 25%: minus 100
points
- If x > 25%: minus 150 points
3
Quality assessment indicator of
claim settlement
150
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Unsettled claim dossier ratio
indicator
x1 ≤ 15 days/dossier
75
If beyond amplitude: minus 75
points
3.2
Average time indicator of claim
dossier settlement
- Motor vehicle insurance:
x2 ≤ 15 days
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
25
If beyond amplitude: minus 25
points
- Health insurance and liability
insurance:
x2 ≤ 30 days
25
If beyond amplitude: minus 25
points
- Other insurance operations: x2
≤ 60 days
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
If beyond amplitude: minus 25
points
III
GROUP OF ASSESSMENT INDICATOR
OF CAPITAL, ASSET QUALITY AND FINANCIAL INVESTMENT
500
1
Owner’s equity indicator
commensurate with operational scale
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
100
In case of violation of law:
minus 100 points
2
Change indicator of owner’s
equity
x ≥ -15%
(Not applicable to the non-life
insurance enterprises operating in the first 03 years)
No
score
Assessment in relationship with
indicator III.3
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Total premium indicator over
owner’s equity
x ≤ 500%
No
score
Assessment in relationship with
indicator III.2
4
Short-term liability indicator
over the liquid assets
x ≤ 100%
25
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
5
After-tax profit margin indicator
over owner’s equity
x > 5%
25
- If beyond the amplitude in the
first year: minus 10 points
- If beyond the amplitude in the
second year: minus 20 points
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
6
Indicator
of ratio of overdue debt from 1 year or more over owner’s equity
x ≤ 5%
100
- If beyond the amplitude: minus
100 points
7
Indicator of ratio of provision
for bad debts
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Compliance with provisions in Circular
No. 228/2009/TT-BTC
25
Violation of law: minus 25 points
8
Indicator of compliance with law
on principle and structure of investment
Compliance with provisions in Articles
11, 12, 13 of Circular No. 125/2012/TT-BTC and the amended or added documents
(if any).
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
100
- Violation of law on principle
of investment: minus 50 points
- Violation of law on limit of
investment assets: minus 50 points
9
Indicator of return of investment
4,5% < x ≤ 15%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- If beyond the amplitude in the
first year: minus 10 points
- If beyond the amplitude in the
second year: minus 20 points
- If beyond the amplitude in the
third year onwards: minus 25 points
10
Indicator of ratio of provision
for devaluation of investment assets
Compliance with law on provision
ratio of each asset
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Minus 25 points/1 asset due to
improper provision as prescribed by law. Minus 50 points maximally
IV
GROUP OF ASSESSMENT INDICATOR
OF CORPORATE GOVERNANCE AND INFORMATION TRANSPARENCY
200
1
Indicator of organizational
structure
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Compliance with provisions in
Articles 23, 24, 25, 26, 27, 28, 29 and 34 of Circular No. 124/2012/TT-BTC and
the amended or added documents (if any).
70
- Failure to comply with
regulations on conditions of manager and operator: minus 25 points/01 title.
Minus 50 points maximally
- Failure to comply with regulations
on concurrence: minus 25 points/01 title. Minus 50 points maximally
2
Indicator of management and
operation and information transparency
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Compliance with regulations of law
on internal inspection, control and audit; operational procedure
Compliance with provisions in
Article 15 of Decree No. 45/2007/ND-CP , Article 35 of Decree No.
46/2007/ND-CP ; Article 36 of Circular No. 124/2012/TT-BTC and Article 31 of
Circular No. 125/2012/TT-BTC .
100
- Shortage of procedure or
inadequate contents of procedure as prescribed by law: minus 10 points/1
procedure. Minus 40 points maximally.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Persons performing the
inspection and control fail to meet the conditions
- Heads of divisions fail to
report to their superior leadership on the result of internal inspection,
control and audit as prescribed by law: minus 20 points
Compliance with reporting
regulations
Compliance with regulations of
law
10
Enterprise violates the reporting
regulations: minus 10 points
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Compliance with provisions in
Article 34 of Circular 124/2012/TT-BTC and amended or added documents (if
any).
10
The calculation experts do not
make periodical reports to the General Director or the Board of Executives or
Member Board: minus 10 points
Sanction of administrative
violation in the year
10
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
x:
Values of indicators shall be calculated
by the non-life insurance enterprises and reported to the Ministry of Finance
in accordance with the provisions in this Circular.
APPENDIX 3
MEASURES TAKEN TO ENSURE THE AMPLITUDE OF EACH
INDICATOR TO THE NON-LIFE INSURANCE ENTERPRISES
(Issued with Circular No.195/2014/TT-BTC dated 17/12/2014 of the
Ministry of Finance)
I. For the group of assessment
indicator of solvency, operational provision and insurance business performance
1. Take measures to restore the solvency
margin in accordance with the provisions in Article 79 of the Law on insurance
business.
2. Appropriate the operational
provisions properly and completely by the method registered with the Ministry
of Finance and regulations of law.
3. Improve the insurance business
performance:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
b) Complete the procedure for risk
management in insurance business; provide training and improve skills of risk
assessment of non-life insurance enterprise’s staff.
c) Closely and effectively
control the cost of business and management; control the claims and make
payment of insurance properly, fully and in a timely manner in accordance with
regulations of law and commitment in the insurance contract; balance the
expenditures to effectively ensure the objectives.
d) Streamline the operational
organizational apparatus to ensure the effectiveness and simplification.
dd) Narrow the operation areas,
customers and products;
e) Adjust the re-insurance program.
II. For group of assessment
indicator of insurance operation
1. Adjust the policies on business
development: products, customers, areas and distribution channels;
2. Improve the customer services
quality:
a) Complete the procedure for
customer care, insurance claim settlement; strengthen the inspection and
monitoring of implementation;
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
3. Adjust the re-insurance policy:
criteria for re-insurance company, retention ration, re-insurance methods,....
4. Closely and effectively
control the cost of business and management; control the claims and make
payment of insurance properly, fully and in a timely manner in accordance with
regulations of law and commitment in the insurance contract; balance the
expenditures to effectively ensure the objectives.
5. Streamline the operational
organizational apparatus to ensure the effectiveness and simplification;
strengthen the quality of management and operation staff.
6. Narrow the operation areas,
customers and products;
7. Modify or add the rules,
provisions and premium list of insurance products to ensure the simplification,
cleanliness, limit dispute and ensure the enterprise’s financial safety and
customer’s interests.
8. Adjust the policy on agent
development and assistance; complete the agent management procedure; improve
the quality of recruitment, training and employment of agent.
III. For the group of assessment
indicators of capital, asset quality and financial investment
1. Increase the charter capital to
meet the business operation scale as prescribed by law or narrow the
operational contents, scope and areas;
2. Adjust the structure and limit
of investment assets; appropriate the prescribed devaluation of investment
assets;
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
4. Make comparison, monitor and collect
debts receivable, completely settle all debts payable, appropriate the
provision for bad debts; strengthen the quality of risk assessment of business
partners.
IV. For the group of assessment
indicators of corporate management and information transparency
1. Adjust and complete the
corporate management, recruitment and training or have plan to replace the
employees who fail to meet the standards of profession, experience and diploma.
2. Strengthen the organization of
division of internal inspection and control; modify and add the procedures for
operation, internal inspection and control; perform the internal inspection and
control; seriously comply with the reporting regulations as prescribed by law
and have sanctions against divisions and individuals that fail to comply.
APPENDIX 4
CRITERIA FOR RANKING LIFE INSURERS
(Enclosed with Circular No. 195/2014/TT-BTC dated December 17, 2014 of the
Ministry of Finance)
A. GROUP OF
CRITERIA FOR SOLVENCY AND OPERATING RESERVE
I. Criteria
for solvency
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1.1.
Formula
Solvency
Margin Ratio
=
Solvency
margin
Minimum
solvency margin
Source of data:
Form No. 8-NT enclosed with
Circular No. 125/2012/TT-BTC dated July 30, 2012 of the Ministry of Finance on guidelines
for financial regulations applied to insurers, reinsurers, insurance brokers,
and branches of foreign non-life insurers (hereinafter referred to as Circular
No. 125/2012/TT-BTC).
1.2.
Meaning
This criterion is meant to assess
the financial capacity of the life insurer (hereinafter referred to as
insurer), reflects its solvency compared to the minimum level.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2. General
solvency
2.1.
Formula
General
solvency
=
Total
Assets (A)
Total
liabilities (B)
Source of data:
(A): Index 270 of balance
sheet
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2.2. Meaning
This criterion reflects the
insurer’s ability to cover its liabilities at the most general level without
discrimination between short-term and long-term liabilities.
2.3. Margin: x
> 1
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, and then send a report to the Ministry of Finance.
3. Quick Solvency
3.1. Formula
Quick
Solvency
=
cash
and cash equivalents (A) + Bank deposits
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Source of data:
(A): Index 110 of balance
sheet
(B): Index 300 of balance
sheet – Operating reserve – Long-term liabilities
Bank deposit is the total amount of
bank deposits having terms from 3 months to 1 year.
3.2. Meaning
This criterion reflects the
insurer’s ability to cover its short-term liabilities within 1 year.
3.3. Margin: x
> 1
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
II. Criteria
for operating reserve
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1.1. Change
in operating reserve
a) Formula
Change
in operating reserve ratio
=
Increase
in reserve this year (A)
-
Increase
in reserve last year (C)
Revenue
from premium this year (B)
Revenue
from premium last year (D)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(A), (C): Index
01.3 + index 13 + index 14 of income statement.
(B), (D):
Index 01.1 + index 01.2 of income statement.
b) Meaning
This criterion is meant to assess
the change in the ratio of operating reserve to revenue from premium of the
insurer.
c) Margin: -20% ≤ x ≤
20%
If the ratio is outside the margin,
the insurer must run an analysis and send a report to the Ministry of Finance.
1.2. Ratio of reserves
a) Formula
Ratio
of reserves
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Level
of reserves of each operation in the year (A)
Revenue
from premium of equivalent operation in the year (B)
Ratio of type of reserve for each
insurance product should be calculated separately (Term life insurance,
endowment insurance, whole life insurance, permanent life insurance,
investment-linked insurance, pension insurance, etc.)
Source of data:
(A): Form No. 6-NT enclosed with
Circular No. 125/2012/TT-BTC.
(B): Form No. 3-NT enclosed with
Circular No. 125/2012/TT-BTC.
b) Meaning
This criterion is meant to assess the
ratio of operating reserve to revenue from premium of each operation.
c) Margin: Absolute
number
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2. Criteria for operating
reserves
2.1. Mathematical reserve
a) Formula
Mathematical
reserve ratio
=
Mathematical
reserve according to the insurer’s method
Minimum
mathematical reserve according to regulations of law
Source of data: Provided by the
insurer’s valuation unit.
b) Meaning
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
c) Margin: x ≥ 1
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2.2. Reserves for unresolved
claims
a) Formula
Ratio
of reserves for unresolved claims
=
Reserve
for indemnity at the beginning of period (A) + Sum assured (SA) of claims
incurred in the period (B) – SA of denied claims in the period (C) – SA of
claims paid (D)
Indemnity
reserve for unresolved claims at the end of period (E)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(A), (E):
Description of financial statement about indemnity.
(B), (C), (D):
Provided by the insurer’s operations departments.
b) Meaning
This criterion is meant to assess
the adequacy of indemnity reserve.
c) Margin: x =
1
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2.3. Unearned
premium reserves (not including investment-linked insurance and pension
insurance)
a) Formula
Ratio
of change in unearned reserve to change in revenue from premium
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Unearned
premium reserve on December 31 this year
-
Total
revenue from premium this year
Unearned
premium reserve on December 31 last year
Total
revenue from premium last year
Source of data:
- Unearned premium reserve: Form
No. 6B-NT enclosed with Circular No. 125/2012/TT-BTC.
- Revenue from premium: total revenue
from premium of products that have unearned premium reserves.
b) Meaning
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
c) Margin: -5% ≤ x
≤ 10%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
B. GROUP OF CRITERIA FOR
BUSINESS ACTIVITIES
I. Criteria for new policies
1. Ratio of change in number of
new policies
1.1. Formula
Ratio
of change in number of new policies
=
Number
of new policies this year - number
of new policies last year
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Source of
data:
Number of new policies in the
fiscal year (main policies): Form No. 2-NT enclosed with Circular No.
125/2012/TT-BTC.
1.2. Meaning
This criterion reflects the growth
in number of policies.
1.3. Margin
Insurers over 5 years: -10% < x
< 50%
Insurers under 5 years: 50% < x
< 300%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
1.4. Analysis of reasons and
addition of information in case the ratio is outside the margin
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Number
of additional policies for each product
=
Number
of additional policies in the year for each product
Number
of new main policies in the year
b) Relevant
criteria:
- Change in
premium revenue from new policies;
- Average SA of
new policies;
- Ratio of
cancelled policies;
- Productivity
of insurance agents.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2. Criterion for ratio of change
in premium revenue from new policies
2.1.
Formula
Ratio
of change in premium revenue from new policies
=
Total
premium this year – Total premium last year
Total
premium last year
Source of
data:
Premium from new policies
(including additional products): Form No. 3-NT enclosed with Circular No.
125/2012/TT-BTC.
2.2. Meaning
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2.3. Margin
Insurers over 5 years: 0% < x
< 50%
Insurers under 5 years: 50% < x
< 300%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2.4. Analysis of reasons and
addition of information in case the ratio is outside the margin
a) Relevant criteria:
- Ratio of change in number of new
policies;
- Average SA of new policies;
- Ratio of cancelled policies;
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
b) It is recommended that data over
the last 3 – 5 years be analyzed to reflect the insurer’s growth tendency.
3. Average SA of new policies
3.1.
Formula
Average
SA of new policies
=
SA
of new main policies (A)
Number
of new main polices (B)
Source of data:
(A),
(B): Form No. 2-NT enclosed with Circular No. 125/2012/TT-BTC.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
This criterion reflects quality of new
policies.
3.3. Margin: Absolute
number
3.4. Analysis of reasons and
addition of information
a) Relevant criteria:
- Ratio of change in number of new
policies;
- Ratio of change in premium
revenue from new policies.
b) It is recommended that data over
the last 3 – 5 years be examined to reflect the growth in premium from new
policies.
4. Ratio of policies cancelled
during free look period
4.1. Formula
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
=
Number
of main policies cancelled during free look period (A)
Number
of new main polices (B)
Source of data:
(A): Provided by the insurer’s
operations departments.
(B): Form No. 2-NT enclosed with
Circular No. 125/2012/TT-BTC
4.2. Meaning
This ratio reflects the quality of
policies (quality of agents’ consultancy, customer services).
4.3. Margin
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Insurers under 5 years: x < 15%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
II. Criteria for persistency of
policies
1. Ratio of change in number of
policies in force
1.1. Formula
Ratio
of change in number of policies in force
=
Number
of main policies in force this year - Number of main policies in force
last year
Number
of main policies in force last year
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1.2. Meaning
This ratio reflects the growth in
number of policies in force in the year.
1.3. Margin
Insurers over 5 years: x > 3%
Insurers under 5 years: x > 15%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
1.4. Analysis of reasons and
addition of information in case the ratio is outside the margin
a) Relevant criteria:
- Ratio of change in number of new
policies;
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Ratio of cancelled policies.
c) It is recommended that data over
the last 3 – 5 years be analyzed to reflect the insurer’s growth tendency.
c) When analyzing this criterion,
it is recommended to examine each insurance product, average remaining
insurance period of each product to make an overall assessment of the insurer’s
operation.
2. Ratio of change in total
premium
2.1. Formula
Ratio
of change in total premium
=
Total
premium this year – Total premium last year
Total
premium last year
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2.2. Meaning
This criterion reflects the
insurer’s growth in premium.
2.3. Margin
Insurers over 5 years: x > 5%
Insurers under 5 years: x > 10%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2.4. Analysis of reasons and
addition of information in case the ratio is outside the margin
a) Relevant criteria:
- Change in premium revenue from
new policies;
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Ratio of policy persistency.
- Ratio of total premium to charter
capital.
b) It is recommended that data over
the last 3 – 5 years be analyzed to reflect the insurer’s growth tendency.
3. Ratio of lapsed policies.
3.1. Formula
Ratio
of lapsed policies
=
Number
of main policies lapsed in the n policy year
0.5
x (number of main policies in force at the beginning of period + number of
main policies in the n policy year in force at the end of period + number of
main policies in the n policy year lapsed in the period)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
3.2. Meaning
This criterion reflects the ratio
of policies cancelled, which reflects the quality of policies, customer
services, and effectiveness of the insurers’ agents.
3.3. Margin
Rate of lapsed policies in the
first year: x < 25%
Rate of lapsed policies in the
second year: x < 15%
Rate of lapsed policies from the
third year onwards: x < 5%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
4. Ratio of persistency
4.1. Formula
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
=
Renewal
premiums of current year (A)
Total
premium last year (B) – Total premium of matured policies of current year (C)
Source of data:
(A): Form No. 3-NT enclosed with
Circular No. 125/2012/TT-BTC .
(B): Index 01.1 + index 01.2 of
income statement.
(C): Provided by the insurer’s
operations departments.
4.2. Meaning
This criterion reflects the ratio of
persistent policies, which reflects the quality of policies and customers
services.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Rate of persistency in the second
year: x > 60%
Ratio of persistency in the third
year: x > 70%
Ratio of persistency from the
fourth year onwards: x > 85%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
III. Criteria for quality of
agents
1. Ratio of change in number of
recruited agents
1.1. Formula
Ratio
of change in number of recruited agents
=
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Number
agents recruited last year
Source of data:
Appendix 14 enclosed with Circular No.
124/2012/TT-BTC dated July 30, 2012 on guidelines for the Government's Decree
No. 45/2007/ND-CP and Decree No. 123/2011/ND-CP (hereinafter referred to as
Circular No. 124/2012/TT-BTC).
1.2. Meaning
This ratio reflects the insurer’s
agent recruitment and development policies.
1.3. Margin
Insurers over 5 years: -20% < x
< 20%
Insurers under 5 years: -20% < x
< 100%
If the ratio is outside the margin,
the insurer must run an analysis and send a report to the Ministry of Finance.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2.1. Formula
Ratio
of change in number of active agents
=
Number
of active agents this year - Number active agents last year
Number
of active agents last year
Source of data: Appendix 14 enclosed
with Circular No. 124/2012/TT-BTC.
2.2. Meaning
This ratio assists in assessment of
training quality and agent management
2.3. Margin
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Insurers under 5 years: -20% < x
< 100%
If the ratio is outside the margin,
the insurer must run an analysis and send a report to the Ministry of Finance.
3. Productivity of agents
3.1. Formula
Productivity
of agents
=
Number
of new policies (A)
Average
number of active agents (B)
Source of data:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(B) = (Total number of active
agents at the beginning of period + Total number of active agents at the end of
period)/2
3.2. Meaning
This ratio is meant to assess the
quality of agents’ operation.
3.3. Margin: Absolute
number
4. Ratio of premium debt to
total premium
4.1. Formula
Ratio
of premium debt to total premium
=
Debt
premium (A)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Source of data:
(A): Index 131 of balance sheet
(B): Index 01.1 + index 01.2 of
income statement.
4.2. Meaning
The ratio of premium debt to total
premium shows the quality of the insurer’s premium collection work.
4.3. Margin: x < 3%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
5. Use of distribution channels
5.1. Formula
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
=
Premium
revenue by each channel (A)
Total
premium revenue (B)
Source of data:
(A): Provided by the insurer’s
operations departments.
(B): Index 01.1 + index 01.2 of
income statement.
5.2. Meaning: This
ratio is meant to assess the insurer’s distribution channel development
strategy.
5.3. Margin: Absolute
number
IV. Criteria for claim payment
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1.1. Formula
Ratio
of claim payment
=
Claim
payment (A) ± increase (decrease) in reserves (B
Net
premium (C) + investment interest from reverses
Where: investment interest from
reserve = i x (Vo +V1) x 1/2
Source of data:
(A): Index 15 of income statement.
(B): Index 13 + index 01.3 + index
14 of income statement.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(i): Average interest rate of
Government bonds with 10-year term issued in the fiscal year.
Vo: Opening reserve
V1: Closing reserve
1.2. Meaning
This ratio assists in analysis and
assessment of net profit from insurance business.
1.3. Margin
The insurers operate in the first year:
x < 10%
The insurers operate in the second
year: x < 15%
The insurers operate in the third
year: x < 20%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
If the ratio is outside the margin,
the insurer must run an analysis and send a report to the Ministry of Finance.
2. Criteria for assessment of
quality of claim settlement
2.1. Ratio of pending claims
a) Formula
Ratio
of pending claims
=
Number
of pending claims
Number
of settled claims
Source of data: Provided by the
insurer’s operations departments.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
This ratio is meant to assess the
quality of claim settlement and policy management.
c) Margin: x <
5%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2.2. Average time for claim
settlement
a) Formula
Average
time for claim settlement
=
Total
time for settlement of claims
Number
of settled claims
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- The time for settlement of a
claim (whether rejected or granted) is the period from the day on which
satisfactory documents are received to the day on which the insurer issues a
decision to reject/approve the claim: provided by the insurer’s operations departments.
- The number of settled claims is
the number of claims that have been rejected or granted in the fiscal year:
provided by the insurer’s operations departments.
b) Meaning
This ratio is meant to assess the
quality of claim settlement and policy management.
c) Margin: x <
60 days
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2.3. Claim payment
a) Formula
Ratio
of claim payment
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Total
amount of claim payment
Total
amount of granted claims
Source of data: Provided by the
insurer’s operations departments.
b) Meaning
This ratio is meant to assess the quality
of customer services and policy management.
c) Margin: x >
95%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2.4. Ratio of rejected claims
a) Formula
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
=
Number
of rejected claims
Number
of settled claims
Source of data:
The number of settled claims is the
number of claims that have been rejected or granted in the fiscal year:
provided by the insurer’s operations departments.
b) Meaning
This ratio reflects the quality of
customer services and quality of agents’ consultancy.
c) Margin
- For health
insurance: x < 30%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2.5. Ratio of granted claims
a) Formula
Ratio
of granted claims
=
Total
amount of granted claims
Total
amount of settled claims
Source of data: Provided by the
insurer’s operations departments.
b) Meaning
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
c) Margin
- For health insurance: x > 70%
- For other insurance: x > 90%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
V. Criteria for reinsurance
1. Reinsurance ratio
Reinsurance
ratio
=
Reinsurance
premium (A)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Source of data:
(A): Index 02 of income statement.
(B): Index 01.1 + index 01.2 of
income statement.
1.2. Meaning
This ratio reflects the insurer’s
level of reinsurance in the fiscal year.
1.3. Margin: Absolute
number
2. Ratio of reinsurance in the
first year
2.1. Formula
Ratio
of reinsurance in the first year
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Reinsurance
premium in the first year (A)
Total
first year premium (B)
Source of data:
(A): Provided by the
insurer’s operations departments and reinsurance department.
(B): Form No. 3-NT enclosed with
Circular No. 125/2012/TT-BTC.
2.2.
Meaning
This ratio
reflects the insurer’s level of reinsurance in the first year of insurance
policy.
2.3.
Margin: Absolute number
3. Ratio of
reinsurance in the following years
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Ratio
of reinsurance in the following years
=
Reinsurance
renewal premium in the following years (A)
Total
renewal premium (B)
Source of
data:
(A):
Provided by the insurer’s operations departments and reinsurance department.
(B): Form No.
3-NT enclosed with Circular No. 125/2012/TT-BTC.
3.2.
Meaning
This ratio
reflects the insurer’s level of reinsurance in the following years.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
4.
Reinsurance efficiency assessment
4.1.
Formula
Reinsurance
efficiency assessment
=
Collected
reinsurance indemnity + Collected reinsurance commission by each product (A)
Corresponding
reinsurance premium by each product (B)
Source of
data:
(A), (B):
Provided by the insurer’s reinsurance department.
4.2.
Meaning
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
4.3.
Margin: Absolute number
VI. General
criteria
1. Operating
expense ratio
1.1.
Formula
Operating
expense ratio
=
Total
expense of insurance business
(exclusive of commission) (A)
Net
premium revenue (B)
Source of data:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(B): Index 01.1 + index 01.2 +
index 02 of income statement.
When calculating this ratio, the insurer
may deduct some non-recurrent expenditures on development of IT system serving
management, operation, or agents, and include information about such
expenditures on the report sent to the Ministry of Finance.
1.2. Meaning
This ratio reflects the insurer’s
expense management efficiency.
1.3. Margin
First year of operation: x ≤ 400%
Second year of operation: x ≤ 100%
Third year of operation: x ≤ 50%
Fourth year of operation: x ≤ 30%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2. Change of insurance product
structure
2.1. Formula
Insurance
product
Premium
this year
Proportion
of total premium this year
Premium
last year
Proportion
of total premium last year
(2)
– (4)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(2)
(3)
(4)
(5)
I. Individual insurance
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
a. Whole life insurance
b. Permanent life insurance
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
c. Term life insurance
s. Endowment insurance
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
e. Annuity
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
g. Investment-linked policies:
- Universal:
- Unit-linked
h. Pension insurance
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
i. Other products
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
II. Group insurance
a. Whole life insurance
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
b. Permanent life insurance
c. Term life insurance
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
s. Endowment insurance
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
e. Annuity
g. Investment-linked insurance:
- Universal:
- Unit-linked
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
h. Pension insurance
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
i. Other products
III. Total premium
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Total value of (5)
Source of
data:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2.2. Meaning
This criterion reflects the change
in business strategy of the insurer.
2.3. Margin: x < 5%
If the ratio is outside the margin,
the insurer must run an analysis and send a report to the Ministry of Finance.
2.4. Analysis of reasons and
addition of information in case the ratio is outside the margin
It is recommended to analyze the
criterion based on assessment of relevant policies:
- The insurer’s policies on the
main distribution channel, specific products of each channel;
- The insurer’s assessment of efficiency
of each product.
C. GROUP OF CRITERIA FOR
ASSESSMENT OF CAPITAL, ASSET QUALITY, AND BUSINESS EFFICIENCY
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1. Capital sufficiency
1.1. Formula
Capital
sufficiency
=
Charter
capital (A)
Minimum
capital corresponding to the scale and risks of the insurer (B)
Source of data:
(A): Index 400 of balance sheet
(B): Minimum capital corresponding
to the scale and risks of the insurer (B) calculated in accordance with
instructions of the Ministry of Finance.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
This criterion reflects the
sufficiency of the insurer’s charter capital with regard to its scale and
risks.
1.3. Margin: According
to applicable regulations
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2. Ratio of change of charter
capital
2.1. Formula
Ratio
of Change of charter capital
=
Charter
capital this year (A) - Charter capital last year (B)
Charter
capital last year (B)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(A), (B): Index 400 of balance
sheet
2.2. Meaning
This ratio reflects the change of
insurer’s charter capital in the fiscal year.
2.3. Margin: x ≥ -20%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
3. Ratio of total premium
revenue to charter capital.
3.1. Formula
Ratio
of total premium revenue to charter capital
=
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
0.5
x Charter capital last year (B)
+
Charter capital this year (C)
Source of data:
(A): Index 01.1 + index 01.2 of
income statement.
(B), (C): Index 400 of balance
sheet
3.2. Meaning
This ratio reflects the
correspondence of charter capital and the insurer’s scale, regardless of
support from reinsurance.
3.3. Margin
Insurers over 5 years: 20% < x
< 900%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
4. Ratio of net premium revenue to charter capital
4.1. Formula
Ratio
of net premium revenue to charter capital
=
Net
premium revenue (A)
0.5
x Charter capital last year (B)
+
Charter capital this year (C)
Source of data:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(B), (C): Index 400 of balance
sheet
4.2. Meaning
This ratio reflects the
correspondence of charter capital and the insurer’s scale with due account
taken of support from reinsurance.
4.3. Margin
Insurers over 5 years: 20% < x
< 900%
Insurers under 5 years: 5% ≤ x ≤
900%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
5. Ratio of charter capital to
liabilities
5.1. Formula
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
=
Charter
capital (A)
Adjusted
liabilities (B)
Source of data:
(A): Index 400 of balance sheet
(B): Index 300 of balance sheet – Accrued
operating reserve – Value of Fund for protection of policyholders.
5.2. Meaning
This ratio reflects the insurer’s
ability to cover its liabilities with its charter capital.
5.3. Margin: x
> 1
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
6. Ratio of capital support to
charter capital
6.1. Formula
Ratio
of capital support to charter capital
=
Reinsurance
commission (A)
+
Financial support from reinsurer
0.5
x Charter capital at the year’s beginning (C)
+
Charter capital at the year’s end (D)
Source of data:
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(B): Provided by the insurer’s reinsurance
department.
(C), (D): Index 400 of balance
sheet
6.2. Meaning
This ratio is meant to assess the
revenues from reinsurance commission and financial support from reinsurers.
6.3. Margin: x ≥ 0
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
6.4. Regulated entities
Refinancing insurers; insurers
receiving financial support from reinsurers.
7. Ratio of charter capital to
total capital
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Ratio
of charter capital to total capital
=
Charter
capital (A)
Total
capital (B)
Source of data:
(A): Index 400 of balance sheet
(B): Index 440 of balance sheet
7.2. Meaning
This ratio reflects the insurer’s
financial autonomy.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
III. Criteria
for assessment of asset quality
1. Change of
asset structure
1.1.
Formula
Asset
Value
this year
Proportion
to total assets this year
Value
last year
Proportion
to total assets last year
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
(1)
(2)
(3)
(4)
(5)
1. Government bonds
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Less than 1 year
- 1 – 5 years
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Over 10 years
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Less than 1 year
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- 1 – 5 years
- 5 – 10 years
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Over 10 years
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
4. Unlisted shares
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
5. Secured loans
6. Business premises
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
7. Other real estate
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
9. Capital contribution to joint
venture
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
10. Investment in associate
companies
11. Deposits
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
12. Cash and short-term
investments
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
14. Total asset value
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
15. Total value of (5)
Source of data: Provided by the
insurer’s investment department.
To
calculate this ratio, first calculate the proportion of each type of asset to
total assets, then calculate the difference between the proportion of the
current year and that of the last year of each type of asset, then divide the
sum of difference (absolute value) by total assets in order to determine the
average change in proportion of assets in the insurer's investment portfolio.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
This ratio is meant to assess the
change of proportion of each asset to the insurer’s investment, which reflects
the insurer’s investment tendency.
1.3. Margin: x
< 5%
If the ratio is outside the margin,
the insurer must run an analysis and send a report to the Ministry of Finance.
2. Ratios of receivables to
charter capital
2.1. Ratio of receivables from
customers to charter capital
a) Formula
Ratio
of receivables from customers to charter capital
=
Receivable
from customers (A)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Source of data:
(A): Index 131 of balance sheet
(B): Index 400 of balance sheet
b) Meaning
This ratio is meant to assess the
risk of decrease in equity capital and assets because of customers’ insolvency
or payment deferral.
c) Margin: x <
10%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
2.2. Ratio of internal
receivables to charter capital
a) Formula
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
=
Internal
receivables (A)
Charter
capital (B)
Source of
data:
(A): Index 133 + index 213 of
balance sheet.
(B): Index 400 of balance sheet
b) Meaning
This ratio is meant to assess the risk
of decrease in equity capital and assets because of deferral or default of
internal receivables.
c) Margin: x <
1%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2.3. Ratio of bad debts to charter capital
a) Formula
Ratio
of bad debts to charter capital
=
Total
value of bad debts at the end of fiscal year (A)
Charter
capital (B)
Source of
data:
(A): Index 139 +
index 219 of balance sheet.
(B): Index 400
of balance sheet
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
This ratio is meant to assess the
risk of decrease in charter capital and assets because of bad debts.
c) Margin: x <
0.5%
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
3. Reserve for bad debts
3.1. Formula
Applicable to assets that require
reserve for bad debts.
Reserve
for bad debts
=
Reserve
for bad debts of each asset (A)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Source of data:
(A): Reserve for bad debts
corresponding to income from each asset portfolio in (B)
(B): Value of asset portfolio corresponding
to book value of each type of assets sorted according to C.II.1.
3.2. Meaning
This ratio is meant to assess
quality the insurer’s assets and risk of liquidity loss of assets
3.3. Margin: x <
5% for each asset portfolio.
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
4. Reserve for asset devaluation
4.1. Formula
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
=
Reserve
for devaluation of each type of asset
Total
value of corresponding assets
Source of data:
Assets classified at C.II.1.
4.2. Meaning
This is meant to assess the
insurer’s asset quality, risk management works, as well as conformity with law on
making reserve for asset devaluation.
4.3. Margin: x
< 10% for each asset portfolio.
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
5.1. Formula
Correspondence
between assets and liabilities
=
Average
remaining term of policies, sorted by type (A)
–
Average
period of capital recovery of corresponding assets (B)
Source of data:
(A): Provided by the insurer’s
valuation department.
(B): Provided by the insurer’s
investment department.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
This criterion reflects the correspondence
between the period of liabilities and period of assets.
4.3. Margin: 0 ≤ x
≤ 15 (years)
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
III. Criteria for business
efficiency
1. Rate of net profit from
insurance business
1.1. Formula
Rate
of net profit from insurance business
=
Net
profit from insurance business (A)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Source of data:
(A): Index 30 + index 21 + index 24
of income statement.
(B): Index 01.1 + index 01.2 +
index 02 of income statement.
1.2. Meaning:
This
ratio is meant to assess the efficiency of the insurer’s insurance business.
1.3. Margin
Insurers over 10 years: 0% < x
< 20%
Insurers under 10 years: not
applicable.
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2.1. Formula
Rate
of return of asset investment
=
Profit
from financial activities (A)
0.5
x (Opening total investment + Closing total investment) (B)
Source of data:
(A): Index 24 of income statement.
(B): Index 120 + Index 250 of
balance sheet + term deposits of less than 3 months.
2.2. Meaning: This
is meant to assess the insurer’s asset investment efficiency.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio
does not exceed the margin, then send a report to the Ministry of Finance.
3. Rate of return of charter
capital
3.1. Formula
Rate
of return of charter capital
=
Post-tax
profit (A)
Charter
capital (B)
Source of
data:
(A): Index 60 of
income statement.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
3.2. Meaning
This rate reflects efficiency of
use of charter capital.
3.3. Margin
Insurers over 10 years: x > 1%
Insurers under 10 years: not
applicable.
If the ratio is outside the margin,
the insurer must run an analysis and provide solution to ensure that the ratio does
not exceed the margin, then send a report to the Ministry of Finance.
4. Profit distribution between
policyholders and shareholders
4.1. Formula
Profit
distribution ratio
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Profit
for policyholders from fund of par policies
Profit
for shareholders from fund of par policies
Reference: Provided by the
insurer’s valuation department.
4.2. Meaning
This ratio reflects the conformity
with regulations of law on distribution of surplus of the fund of par policies.
4.3. Margin: x ≥
70/30
If the ratio is outside the margin,
the enterprise must run an analysis and provide solution to ensure that the
ratio does not exceed the margin, then send a report to the Ministry of
Finance.
D. GROUP OF CRITERIA FOR
ASSESSING BUSINESS ADMINISTRATION AND INFORMATION TRANSPARENCY
1. Organizational structure
criteria
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- The insurer must submit a report
on its latest organizational structure to the supervisory body at the end of
every fiscal year;
- The insurer shall review and assess
the adequacy of operations departments: R&D, sales, valuation, indemnity,
reinsurance, investment, and internal control;
1.2. Personnel
The insurer shall assess:
- Adequacy of managerial positions:
the Chairperson of the Executive Board/the Chairperson of the Board of
members/the company's President, General Director, Actuaries;
- Part-time managerial positions
according to applicable regulations;
- Standards and conditions for
holding managerial positions according to applicable regulations;
The insurer shall record and report
changes to its personnel and managerial works in the current fiscal years.
2. Criteria for management and
information transparency
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Adequacy of professional process
as prescribed by law.
- Performance of internal control
unit; reporting of internal control result to the Board of Directors as
prescribed by law;
- The insurer’s internal audit as
prescribed by law;
- Actuaries’ reports to the Board
of Directors as prescribed by law;
- Publishing of information such as
annual financial statements, changes of addresses of headquarter, branches,
representative office, information about insurance policies, funds, voluntary
pension fund, etc.
- Submission of reports as required
by the Ministry of Finance.
APPENDIX 5
MARGINS AND GRADING METHOD FOR ASSESSMENT OF LIFE
INSURERS
(Promulgated together with Circular No. 195/2014/TT-BTC dated December 17,
2014 of the Ministry of Finance)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Criterion
Margin/Assessment
method
Maximum
score
Deduction
Notes
A
GROUP OF CRITERIA FOR
ASSESSMENT OF SOLVENCY AND OPERATING RESERVE
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
I
Criteria for solvency
No
scoring
1
Criterion for margin rate for the
solvency
x
≥ 100%
-
2
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
x
> 1
-
3
Quick Solvency
x
> 1
-
II
Criteria for operating reserve
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1
General criteria for building up
operating reserve
-
1.1
Change in operating reserve
-20%
≤ x ≤ 20%
-
1.2
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Absolute
number
-
2
Criteria for operating reserves
-
2.1
Mathematical reserve
x
≥ 1
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2.2
Reserves for unresolved claims
x
= 1
-
2.3
Unearned premium reserves (not including
investment-linked insurance and pension insurance)
-5%
≤ x ≤ 10%
-
B
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
300
I
Criteria for new policies
50
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1
Ratio of change in number of new
policies
- Insurers
over 5 years:
-10% < x < 50%
15
- Lower than margin in the first
year: minus 5 points.
- Lower than margin for 2 consecutive year: minus 10 points
- Lower than margin for 3 consecutive years or longer: minus 15 points
- Higher than margin: no deduction; a report on new policies and capital
scale must be submitted to the Ministry of Finance
-
Insurers under 5 years:
50% < x < 300%
2
Criterion for ratio of change in
premium revenue from new policies
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
20
- Lower margin in the first year:
minus 5 points
- Lower than margin for 2 consecutive years: minus 10 points
- Lower than margin for 3 consecutive years or longer: minus 20 points
- Higher than margin: no deduction, a report on new policies and capital
scale must be submitted to the Ministry of Finance
-
Insurers under 5 years:
50% < x < 300%
3
Average SA of new policies
Absolute
number
No
scoring
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Ratio of policies cancelled
during free look period
-
Insurers over 5 years:
x < 7%
15
- Higher than margin in the first
year: minus 5 points;
- Higher than margin for 2
consecutive years: minus 10 points
- Higher than margin for 3
consecutive years or longer: minus 15 points
-
Insurers under 5 years:
x < 15%
II
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
50
1
Ratio of change in number of
policies in force
-
Insurers over 5 years:
x > 3%
15
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Outside margin for 2
consecutive years: minus 10 points
- Outside margin for 3
consecutive years or longer: minus 15 points
-
Insurers under 5 years:
x > 15%
2
Ratio of change in total premium
- Insurers
over 5 years:
x > 5%
20
- Outside margin in the first
year: minus 5 points
- Minus 10 points if the score exceeds the margin for 2 consecutive years.
- Minus 20 points if the score exceeds the margin for 3 consecutive years or
longer.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
3
Ratio of lapsed policies.
No
scoring
- Ratio of cancelled policies in
the first year
x
< 25%
No
scoring
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Ratio of cancelled policies in
the second year
x
< 15%
No
scoring
- Ratio of cancelled policies
from the third year onwards
x
< 5%
No
scoring
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
4
Ratio of persistency
15
- Ratio of policy persistency in
the second year.
x
> 60%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
5
Outside margin: minus 5 points.
- Ratio of policy persistency in
the third year.
x
> 70%
5
Outside margin: minus 5 points.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
x
> 85%
5
Outside margin: minus 5 points.
III
Criteria for quality of agents
50
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1
Ratio of change in number of
recruited agents
-
Insurers over 5 years:
-20% < x < 20%
No
scoring
-
Insurers under 5 years:
-20% < x < 100%
2
Ratio of change in number of active
agents
-
Insurers over 5 years:
-20% < x < 50%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
-
Insurers under 5 years:
-20% < x < 100%
3
Productivity of agents
Absolute
number
No
scoring
4
Ratio of premium debt to total
premium
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
50
- 3% ≤ x < 7%: minus 10
points.
- 7% ≤ x < 10%: minus 20 points.
- x ≥ 10% minus 30 points.
- Outside margin for 3
consecutive years: minus 10 more points
- Outside margin for 4
consecutive years: minus 15 more points
- Outside margin for 5
consecutive years: minus 20 more points
In any case, maximum deduction is
50.
5
Use of distribution channels
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
No
scoring
IV
Criteria for claim payment
100
1
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
First
year: x < 10%
Second year: x < 15%
Third year: x < 20%
Next years: x < 70%
No
scoring
2
Criteria for assessment of
quality of claim settlement
100
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Ratio of pending claims
x
< 5%
20
- 5% ≤ x < 10%: minus 10
points.
- x ≥ 10%: minus 20 points.
2.2
Average time for claim settlement
x
< 60 days
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- 61 days ≤ x < 80 days:
minus 10 points.
- x ≥ 80 days: minus 20 points.
2.3
Ratio of claim payment
x
> 95%
20
- 75% ≤ x < 95%: minus 10 points.
- x ≤ 75%: minus 20 points.
2.4
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
For
health insurance:
x < 30%
10
- 30% ≤ x < 40%: minus 5
points.
- x ≥ 40%: minus 10 points.
Other
insurance:
x < 10%
10
10% ≤ x < 20%: minus 5
points.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2.5
Ratio of granted claims
For
health insurance:
x > 70%
10
- 50% < x ≤ 70%: minus 5
points.
- x ≤ 50%: minus 10 points.
Other
insurance:
x > 90%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- 70% < x ≤90%: minus 5
points.
-x ≤ 70%: minus 10 points.
V
Criteria for reinsurance
No
scoring
1
Reinsurance ratio
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2
Ratio of reinsurance in the first
year
Absolute
number
3
Ratio of reinsurance in the following
years
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
4
Reinsurance efficiency assessment
Absolute
number
VI
General criteria
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
50
1
Operating expense ratio
First
year: x ≤ 400%
Second year: x ≤ 100%
Third year: x ≤ 50%
Fourth year: x ≤ 30%
From fifth year: x ≤ 20%
50
- Outside margin in the first
year: minus 15 points
- Outside margin for 2 consecutive years: minus 30 points
- Outside margin for 3 consecutive years or longer: minus 50 points
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Change of insurance product
structure
x
< 5%
No
scoring
C
GROUP OF CRITERIA FOR
ASSESSMENT OF CAPITAL, ASSET QUALITY, AND BUSINESS EFFICIENCY
500
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
I
Capital criteria
200
1
Capital sufficiency
According
to applicable regulations
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
100
Outside margin: minus 100 points.
2
Ratio of change of charter
capital
x
≥ -20%
25
Outside margin: minus 25 points.
3
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
-
Insurers over 5 years:
20% ≤ x ≤ 900%
-
Insurers under 5 years:
5% ≤ x ≤ 900%
25
Outside margin: minus 25 points.
4
Ratio of net premium revenue to
charter capital
-
Insurers over 5 years:
20% ≤ x ≤ 900%
-
Insurers under 5 years:
5% ≤ x ≤ 900%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
5
Ratio of charter capital to
liabilities
x
> 1
25
Outside margin: minus 25 points.
6
Ratio of capital support to
charter capital
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
No
scoring
7
Ratio of charter capital to total
capital
x
> 10%
25
Outside margin: minus 25 points.
II
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
200
1
Change of asset structure
x
< 5%
No
scoring
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Ratios of receivables to charter
capital
50
2.1
Ratio of receivables from
customers to charter capital
x
< 10%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Outside margin: minus 50 points.
2.2
Ratio of internal receivables to
charter capital
x
< 1%
No
scoring
2.3
Ratio of bad debts to charter
capital
x
< 0.5%
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
3
Reserve for bad debts
x
< 5% for each asset portfolio
25
- Each criterion outside margin:
minus 10 points.
- Maximum deduction: 25 points.
4
Reserve for asset devaluation
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
25
- Each criterion outside margin:
minus 10 points.
- Maximum deduction: 25 points.
5
Correspondence between assets and
liabilities
0
≤ x ≤ 15 (years)
50
Outside margin: minus 50 points.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
Criteria for business
efficiency
100
1
Rate of net profit from insurance
business
-
Insurers over 10 years:
0% < x < 20%
-
Insurers under 10 years: not applicable.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
2
Rate of return of asset
investment
x
> 4%
30
Outside margin: minus 30 points.
3
Rate of return of charter capital
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
-
Insurers under 10 years: not applicable.
50
Outside margin: minus 50 points.
4
Profit distribution between
policyholders and shareholders
x
≥ 70/30
20
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
D
GROUP OF CRITERIA FOR
ASSESSING BUSINESS ADMINISTRATION AND INFORMATION TRANSPARENCY
200
1
Organizational structure
criteria
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
120
- Having all positions approved by
the Ministry of Finance
Article
69 of the Law on Insurance Business, Clause 9 Article 1 of the Law on
amendments to the Law on Insurance Business
20
No General
Director/President/Actuary: minus 20 points
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
According
to Article 23, Article 24, Article 25, Article 26, Article 27, Article 28,
and Article 31 of Circular No. 124/2012/TT-BTC and its amendments (if any)
30
- Each position that fails to
satisfy conditions: minus 10 points
- Maximum deduction: 30 points.
- Satisfactoriness of part-time
managerial positions
According
to Article 14 of Decree No. 45/2007/ND-CP , Article 29 of Circular No.
124/2012/TT-BTC.
30
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
- Establishment of mandatory
departments prescribed by law
According
to Article 28 and Article 36 of Circular No. 124/2012/TT-BTC and its
amendments (if any)
40
- Each missing department: minus
20 points
Maximum deduction: 40 points.
2
Criteria for management and
information transparency
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
80
- Establishment of professional
procedures prescribed by law
According
to Article 15 of Decree No. 45/2007/ND-CP , Article 36 of Circular No.
124/2012/TT-BTC.
30
- Each missing procedure: minus
10 points
- No internal control procedures: minus 20 points.
Maximum deduction: 30 points.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
According
to Article 36 of Circular No. 124/2012/TT-BTC.
10
Report is not submitted by
internal control unit to General Director, the Chairperson of the Board of
members, the Chairperson of the Executive Board, or the company's President
at least once a year: minus 10 points.
- Internal audit
According
to Article 35 of Decree No. 46/2007/ND-CP , Article 31 of Circular No.
125/2012/TT-BTC.
10
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
-Conformity with regulations on
reporting
According
to regulations of law
10
Violations against regulations on
reporting: minus 10 points
- Actuary’s report
According
to Article 30 of Circular No. 124/2012/TT-BTC.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
10
No periodic reports submitted by the
actuary to General Director or the Board of Directors or the Board of
members: minus 10 points.
- Penalties for administrative
violations incurred in the year
10
Penalties for administrative violations
incurred in the year: minus 10 points.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
x: Calculated and reported to the
Ministry of Finance by the insurer as prescribed in this Circular.
APPENDIX 6
MEASURES TAKEN TO ENSURE THE AMPLITUDE OF EACH
INDICATOR FOR LIFE INSURANCE ENTERPRISES
(Issued with Circular No.195/2014/TT-BTC dated 17/12/2014 of the
Ministry of Finance)
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
1. Take measures specified in
Article 79 of the Law on insurance business to restore the solvency margin.
2. Appropriate the proper and
complete provision by the methods and basis registered with the Ministry of
Finance and in accordance with regulations of law.
II. For group of assessment
indicator of insurance operation
1. For indicators of new business
a) Improve the insurance products
and develop new products in accordance with the market demand;
b) Assess the business strategy on
the basis of market study and compare it with the implementation reality of the
insurance enterprises of the same size.
c) Study to improve the quality of
customer services;
d) Improve the quality of insurance
agents;
dd) Expand distribution channels.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
a) Develop or improve the customer
care procedure and improve the quality of customer services;
b) Review the structure and
features of products under way;
c) Review and amend the policy to
the insurance agent;
d) Review and modify the procedure
for verification of insurance contract to ensure the customers are provided
with products consistently with their needs and financial capacity to minimize
the contract annulment.
3. For the indicators on quality of
insurance agents.
a) Review the policy on development
of insurance agent;
b) Complete the procedure/policy on
management of insurance agents and policies on commission to agents in accordance
with regulations.
c) Improve the quality of
recruitment and training of insurance agents.
4. For indicators on insurance
payment
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
b) Develop and complete the
procedure for claim settlement and make insurance payment towards maximizing
the protection of insurers’ interests.
5. For indicators on re-insurance
Review the enterprise’s
re-insurance policy.
6. For general indicators
a) Change the policy on cost
management in order to bring the costs to the normal limit corresponding to the
enterprise’s business and operation scale;
b)
During the preparation for budget plan for the next financial years, the
expenditures need to be balanced in order to maintain the cost indicator at the
normal fluctuation.
III. For the group of assessment
indicators on capital, asset quality and performance
1. For capital indicator
Increase the charter capital to
meet the scale of business as prescribed by law or narrow the operational contents,
scope and areas.
...
...
...
Hãy đăng nhập hoặc đăng ký Thành viên
Pro tại đây để xem toàn bộ văn bản tiếng Anh.
a) Adjust the structure and limit
of investment assets and appropriate the prescribed provision for devaluation
of investment assets.
b) Complete the investment procedures
and policies; strengthen the inspection and monitoring of implementation.
IV. For the group of assessment
indicator on corporate management and information transparency
1. Adjust and complete the corporate
management, recruitment and training or have plan to replace the employees who
fail to meet the standards of profession, experience and diploma.
2. Strengthen the organization of
division of internal inspection and control; modify and add the procedures for
operation, internal inspection and control; perform the internal inspection and
control; seriously comply with the reporting regulations as prescribed by law
and have sanctions against divisions and individuals that fail to comply.