Commercial banks are allowed to operate as insurance agents.

In particular, Article 14 of Circular No. 34/2024 clearly stipulates the insurance agency activities of commercial banks and branches of foreign banks as follows:

When the license issued by the State Bank of Vietnam to a commercial bank or a branch of a foreign bank includes provisions for insurance agency activities, the commercial bank or branch of a foreign bank is permitted to conduct insurance agency activities for the types of insurance as stipulated in the Law on Insurance Business.

Commercial banks are permitted to operate as insurance agents. (Illustrative image. Source: ST)

When engaging in insurance agency activities, commercial banks and branches of foreign banks must comply with the regulations of the law on insurance business and other relevant laws.

Thus, according to Circular 34/2024/TT-NHNN, the State Bank of Vietnam still allows commercial banks to conduct insurance agency activities for investment-linked insurance products in accordance with the Law on Insurance Business and its guiding documents.

Previously, in the draft Circular, the State Bank of Vietnam proposed that commercial banks would not be allowed to act as insurance agents for investment-linked insurance products.

In addition, Circular 34/2024/NHNN also stipulates that commercial banks and branches of foreign banks are allowed to continue collecting insurance premiums and gathering documents to facilitate the settlement of claims and payment of insurance benefits according to agreements signed before July 1, 2024, for insurance contracts and agreements in which the commercial bank or branch of a foreign bank acts as an insurance agent.

Amendments, supplements, and extensions of insurance contracts and agreements for which commercial banks and branches of foreign banks act as insurance agents may only be made if the content of the amendments, supplements, or extensions complies with the provisions of the Law on Credit Institutions and this Circular.

Source: https://www.congluan.vn/ngan-hang-thuong-mai-duoc-phep-hoat-dong-dai-ly-bao-hiem-post303898.html