Vietnam, restrictions of reinsurance cessions outside the country

The finance minister is drafting a bill that is designed to limit reinsurance cessions abroad. The current legislation levies a minimum 10% retention of the insured capitals. It seems that this rate is not good enough from the standpoint of the authorities since one third of the insurance premiums collected in the country is redistributed to reinsurers outside the borders.

The ministry believes that the current financial capacities of local reinsurers make it possible to retain more premiums in Vietnam.