FUBON GETS PASS FOR VIETNAM, DESPITE CAPITAL SHORTAGE

Taiwanese insurer Fubon, which leads the local market in motor cover, has received a special dispensation from the Vietnamese regulator that will allow it to set up a subsidiary in Vietnam, despite it not having the required level of capitalisation. In March the Vietnam government issued a new regulation that required the parent of any foreign-capital insurance firm to have total assets of $2bn if it was to be allowed to set up a Vietnamese subsidiary. This would have technically debarred Fubon Insurance from setting up an operation in Vietnam. However, Susan Chang, vice-chairwoman of Taiwan’s Financial Supervisory Commission, said that the Vietnamese government had agreed in principle that Fubon could calculate its capitalisation according to the total assets of Fubon Financial Holding Co. There are currently nine representative offices in Vietnam representing eight Taiwanese insurers, of whom Fubon, Nan Shan Life and Cathay Life have applied to set up subsidairies in the country. Of these, only Fubon would appear to be able to reach the stringent new capitalisation requirements.