National Assembly Deputy Do Duc Hong Ha believes that taking only one course in insurance is not enough for company directors to learn how to manage risk when running a business in the complex finance field.

Discussing the draft Insurance Law on November 4 morning, many NA deputies from Hanoi focused on the quality of insurance enterprise executive personnel as well as transparency in operations.

Ha said the standards for directors and general directors of insurance companies are among the core factors ensuring financial safety and customer protection.

The current draft law stipulates that the person holding this position must have a university degree or higher in insurance, and if not, a degree in another field that includes a “course in insurance” or an insurance certificate.

According to Ha, the phrase “a course in insurance” is too vague and lacks quantitative criteria, making it impossible to ensure that executives have adequate foundational knowledge for managing a business in the complex financial industry like insurance. 

A person who studies only one course cannot bear the responsibility of risk management or run a large-scale enterprise.

In addition, delegating all authority to regulate insurance certificates to the Minister of Finance without establishing a clear framework in the law may lead to risk of lowering risk management standards and operation standards.

Ha proposed that “executives must hold a university degree or higher in insurance. Otherwise, they should have a degree in economics, finance, banking, law, or business administration, accompanied by a certificate in insurance risk management or insurance business administration issued by a legally accredited domestic or international institution.”

He said this would improve the quality of senior personnel in insurance enterprises, prevent appointments in formalism, and protect the interests of policyholders, who are directly affected by the management’s competence.

Regarding insurance brokerage, the deputy emphasized this is a conditional business field, so business conditions must be regulated in the law according to the Investment Law. 

The draft removing current conditions and delegating all to the Government to re-regulate is inconsistent with legislative principles, which may reduce transparency and create arbitrariness in management.

“The law should authorize the government only to regulate dossiers, procedures, and processes, while the business conditions themselves must remain in the law to ensure rigor, consistency, and transparency,” Ha said.

Preventing discrimination, AI-based insurance pricing

Sharing similar concerns about transparency and legal compliance, deputy Ta Dinh Thi emphasized the need to specify the regulations on the use and protection of big data and AI in insurance operations. He noted that while technology can help insurers assess risks more accurately, design personalized products, and detect fraud, it also poses the risk of misuse of personal data if not properly controlled.

Thi recommended that the drafting committee clarify the principles for data usage to ensure full compliance with the Law on Personal Data Protection, prevent discriminatory pricing based on AI-driven factors, and require algorithmic transparency in data analysis and risk assessment.

In addition, the deputy also suggested adding pilot mechanisms for products and insurance models applying new technology.

“It would be appropriate to supplement Article 5a on policies for science and technology applications and digital transformation in the insurance business. This provision would cover the use of big data, AI, cybersecurity standards, and pilot mechanisms. The government should be authorized to provide detailed regulations to promote the insurance sector’s development and contribute to socio-economic growth,” Thi said.

Thi said that insurance is a special business field built on trust and data transparency. When technology deeply integrates into pricing, underwriting, and risk assessment, ensuring privacy and legal compliance becomes essential to maintaining public trust.

Insurance contracts

Nguyen Thanh Hai, chair of the NA Committee on Science, Technology and Environment, said many people become discouraged when faced with lengthy and complex contract terms and annexes, leading them to give up and lose money they have already paid.

Nguyen Thi Thuy, vice chair of the NA’s Committee on Legal and Judicial Affairs, pointed out shortcomings related to life insurance contracts. She said that she had borrowed several contracts from different companies for research, but even for someone experienced in drafting laws, the contracts were still “truly difficult to understand.”

Hai emphasized the need for a standardized insurance contract template approved by competent authorities. This template should be made public, and all insurance companies should be required to comply with it. This aims to protect customers’ rights.

Thu Hang