According to the Ministry of Finance , the insurance market in general and the bancassurance channel in particular have experienced rapid growth recently. However, there have been instances of bank employees promoting, soliciting, or even coercing customers to purchase life insurance or investment-linked insurance when they deposit money or apply for loans.
Therefore, in 2022, the leaders of the Ministry of Finance directed relevant units to urgently organize inspections and audits of insurance sales through banks.
Numerous violations were found in the sale of insurance through banks. (Photo: DD)
Following the directives of the Ministry of Finance, the Insurance Supervision and Management Department conducted inspections of insurance activities at four insurance companies. In particular, in the spirit of the Minister of Finance's resolute, transparent, and strict approach of "punishing violations wherever they occur," the inspection teams carried out their work seriously, objectively, and honestly.
The inspection results revealed numerous irregularities in the sale of insurance through bank agents, particularly in the consulting process by bank staff and brokers. Four typical violations were identified.
Firstly, failing to provide direct advice to customers or to adequately guide them through the procedures and required documentation as stipulated by the company.
Secondly, the lack of quality in advising on insurance products leads to customers not fully understanding the products.
Thirdly, allow others (other individual agents, bank employees) to use the iPad and agent code to guide customers in entering their information.
Fourth, failing to comply with the insurance premium schedule approved by the Ministry of Finance…
These are violations that will be considered for administrative penalties by the Ministry of Finance in accordance with the law, ensuring strict enforcement and deterrence for businesses operating in the market. The penalty decisions, once issued, will be made public to the press and the public to ensure objectivity and transparency.
At the same time, based on the inspection results, the Ministry of Finance requested insurance companies to implement measures such as strengthening management and supervision, and comprehensively rectifying the sale of insurance products through credit institutions and branches of foreign banks.
It is urgent to establish a rigorous inspection and monitoring process for the implementation of legal regulations in the insurance sector; proactively detect and address shortcomings and violations in the process of implementing insurance operations at enterprises, minimizing the impact on customers' rights.
Ensuring the highest level of management of insurance agents is carried out rigorously; preventing and early detecting violations by insurance agents and individuals affiliated with insurance agencies.
Measures are being taken to improve the training, management, and quality control of insurance agents. Accordingly, agents must fully meet the operating conditions and adhere to the content and principles of insurance agency operations as stipulated by law.
Review insurance agency operating expenses, ensuring that all expenses are related to insurance business operations, are fully documented, and comply with legal regulations.
Strengthen the monitoring of risk management, ensuring that the financial safety and capital safety criteria of enterprises comply with legal regulations.
In 2023, in addition to urgently completing the legal framework in the insurance sector, the Ministry of Finance will continue to conduct thematic inspections and audits of insurance sales through credit institutions and branches of foreign banks for 10 insurance companies. At the same time, it will closely coordinate with the Banking Supervision and Inspection Agency of the State Bank of Vietnam in inspecting, auditing, and supervising the provision of insurance services through banks. In case of violations, strict action will be taken in accordance with the law.
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