What is reinsurance cession? Conditions for issuance of insurance certificates

Article overview

Reinsurance cession is a risk management method in the insurance industry that allows insurance companies to transfer part of the responsibility and risk to other insurers. This process not only helps spread risks but also enhances the financial capacity of insurance businesses. The following article will help you understand the concept of reinsurance and the necessary conditions to be certified to operate in this field. We welcome your reference.

Concept of reinsurance cession and issuance of insurance certificates
Concept of reinsurance cession and issuance of insurance certificates

What is reinsurance cession?

Pursuant to Clause 4, Article 4 of the Law on Insurance Business 2022, reinsurance cession is the activity of an insurance enterprise, reinsurance enterprise, or foreign branch in Vietnam transferring part of the reinsurance responsibility. insurance for other insurance enterprises, reinsurance enterprises, foreign branches in Vietnam, foreign insurance enterprises, foreign reinsurance enterprises, foreign insurance organizations based on payment of cession fees reinsurance.

Purpose of reinsurance

Pursuant to Article 89 of the Law on Insurance Business 2022, the purpose of reinsurance cession is:

  • Share risks with insurance businesses, reinsurance businesses, foreign branches in Vietnam, foreign insurance businesses, foreign reinsurance businesses, foreign insurance organizations
  • Insurance enterprises and branches of foreign non-life insurance enterprises receive insurance premiums and compensation and pay insurance proceeds according to the rate agreed in the insurance contract.

Conditions for issuance of insurance certificate

Pursuant to Clause 2, Article 14 of Circular 69/2022/TT-BTC, the conditions to be granted an insurance certificate are:

Taking the insurance certificate exam organized by the manager of the Insurance Administration Department and candidates answering correctly 70% or more of the total exam questions are considered to have passed the certification exam that the candidate has taken. attend

Order and procedures for issuing insurance certificates

Prepared documents

To be granted an insurance certificate, the person who wants to be granted an insurance certificate must register to take the insurance certificate exam. Registration dossiers to take the insurance certificate exam are specified in Clause 2, Article 13 of Circular 69/2022/TT-BTC, including documents showing the following information:

  • Candidate’s personal information (including: full name, date of birth, Citizen Identification Card/ID/Passport number);
  • Name of the certification exam (details for each type of insurance certificate);
  • Type of exam registration certificate (for insurance certificates, insurance auxiliary certificates);
  • Exam date and location;
  • Other information related to the exam.
Registration dossier for taking the insurance certificate exam
Registration dossier for taking the insurance certificate exam

Implementation steps

Step 1: The training facility registers the list of candidates on the Certificate Examination Management System and pays the exam fee.

Registration for the exam is done online through the Certification Exam Management System at least 10 days before the exam date. Or register for the exam through the training facility

Step 2: The Department of Insurance Management and Supervision announces the list of candidates taking the exam on the Certification Exam Management System (for cases where all documents and exam fees have been submitted) 3 working days before the exam date.

Step 3: Candidates take the exam according to the question structure as prescribed in Article 14 of Circular 69/2022/TT-
BTC

Step 4: The Department of Insurance Management and Supervision issues a Decision approving the results of the insurance certification exam, and notifies the exam results to the training facility to notify candidates (through the Certification Exam Management System) within the deadline. 05 working days from the exam date (for paper-based exams) or 03 working days from the exam date (for computer-based exams)

Step 5: Pursuant to the Decision approving exam results of the Department of Insurance Management and Supervision, domestic insurance training facilities issue insurance certificates to candidates who pass the exam and register to take the exam through the training facility, except for schools. Candidates should apply for a re-examination Appeal form issued with Circular 69/2022/TT-BTC.

Consulting, supporting reinsurance transfer, and issuing insurance certificates.

The process of reinsurance cession and issuing insurance certificates must go through strict regulations of the law. Therefore, if you still have questions about this process, please contact Long Phan. As a unit with extensive experience in insurance consulting, Long Phan will support you, including:

  • Explain clearly and in detail the regulations that you should know before ceding reinsurance and issuing insurance certificates;
  • Support in preparing exam documents and registering for the insurance certificate exam;
  • Consulting on conditions for passing the insurance certificate exam;
  • Support in finding reputable insurance training and certification facilities;
  • Receiving insurance certificates on behalf of customers and handing them back to customers.
 Consulting activities on reinsurance cession and issuance of insurance certificates
Consulting activities on reinsurance cession and issuance of insurance certificates

If you have more questions about reinsurance, issuance of insurance certificates and need support, or want to use Long Phan’s services, please call the hotline. 0906.735.386. We are committed to helping you understand your problem effectively.