Prudential, MB Ageas, Sun Life, BIDV Metlife have many violations in insurance sales

On the afternoon of June 30th, the Ministry of Finance released information regarding the results of an inspection of insurance sales through banks for four insurance companies: Prudential Life Insurance Company (Prudential), MB Ageas Life Insurance Company Limited (MB Ageas), Sun Life Insurance Company (Sun Life), and BIDV Metlife Life Insurance Company Limited (BIDV Metlife).

The inspection results revealed numerous irregularities in the sale of insurance through bank agents, particularly in the consulting process conducted by bank employees and brokers.

Recently, there have been many controversies related to life insurance.

Some typical violations include: Failing to provide direct advice to customers or failing to adequately guide them through the procedures and required documentation as stipulated by the company; Failing to ensure the quality of advice on insurance products, leading to customers not fully understanding the products; Allowing others (other individual agents, bank employees) to use iPads or agent codes to guide customers in entering information; and Failing to adhere to the insurance premium schedule approved by the Ministry of Finance…

According to the Ministry of Finance, these are violations that will be considered for administrative penalties 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," the Ministry of Finance stated.

Based on the inspection results, the Ministry of Finance requested the four aforementioned insurance companies to strengthen management and supervision, and comprehensively rectify the sale of insurance products through credit institutions and branches of foreign banks.

In addition, 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.

The Ministry of Finance also requested the four aforementioned insurance companies to ensure the highest level of strict management of their agents; to prevent and promptly detect violations by insurance agents and individuals belonging to 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.

Simultaneously, review insurance agency operating expenses, ensuring that all expenses are related to insurance business operations, are fully documented, and comply with legal regulations. Strengthen risk management oversight to ensure the financial and capital safety criteria of the enterprise are met in accordance with legal regulations.

A representative from the Ministry of Finance added that in 2023, in addition to urgently completing the legal framework in the insurance sector, the agency 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, we will closely coordinate with the Banking Supervision and Inspection Agency - State Bank of Vietnam in inspecting, examining, and supervising the provision of insurance services through banks. In case of violations, we will strictly handle them according to the law.

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 for the four aforementioned companies.

The life insurance market has revealed many shortcomings recently, especially the practice of "forcing" customers to buy insurance when taking out loans; ambiguous advice leading customers to misunderstand the nature of insurance products...

In the Resolution of the 5th session, the National Assembly assigned the Government to conduct a comprehensive inspection of the life insurance market, especially investment-linked insurance products. The National Assembly also requested the Government to promptly address shortcomings in brokerage and cross-selling of life insurance when reviewing loan applications and advising on corporate bond investments.

(Source: Nguoi Lao Dong Newspaper)

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