Previously, inspection teams from the Ministry of Finance conducted a thematic inspection of insurance product sales through credit institutions and branches of foreign banks at Mirae Asset Prévoir Life Insurance Company Limited and Cathay Vietnam Life Insurance Company Limited.

Based on the inspection results, the inspection team recommended corrective measures for each company.

Specifically, for Cathay Life Insurance Vietnam Co., Ltd., it is necessary to review and improve the development, implementation, and monitoring of the company's operational processes and internal regulations to facilitate the provision of universal life insurance products through credit institutions.

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Illustration photo: Pham Hai

At the same time, review and strengthen the implementation of supervision of insurance agent activities.

In addition, review insurance agency operating expenses to ensure compliance with insurance business laws and other relevant laws; review and adjust accounting for expenses that do not comply with insurance business laws, and be responsible for complying with tax laws.

The inspection team requested Mirae Asset Prévoir Life Insurance Company Limited to review and strengthen the management of insurance product sales through credit institutions and branches of foreign banks;

Review and refine the development, implementation, and monitoring of processes and regulations, and conduct regular inspections to ensure compliance with laws, business processes, and internal company regulations.

The issuance of regulations related to insurance agency activities must ensure that agency management is carried out strictly, preventing, early detecting, and handling violations by insurance agents and individuals belonging to insurance agencies or organizations in carrying out insurance agency activities to ensure the rights of policyholders.

In addition, it is necessary to review and improve the management of insurance agents and individuals belonging to insurance agency organizations.

On the other hand, it is recommended to review insurance agency operating expenses, ensuring that insurance business operating expenses comply with legal regulations, and to review and adjust accounting practices in accordance with legal regulations.

In recent times, the Ministry of Finance has strengthened various measures to rectify the negative aspects and deviations in the implementation of insurance product sales in the life insurance market in general and the bancassurance distribution channel in particular.

In the two years from 2022 to 2023, authorities inspected 10 out of 17 life insurance companies that sold insurance through credit institutions and branches of foreign banks.

The inspected businesses generated 96.83% of the total premium revenue from bancassurance sales across the entire life insurance market through this channel.

The inspection uncovered violations such as irregularities in the issuance of procedures and regulations; violations regarding compliance with product fee schedules; and insurance agents failing to comply with company regulations and legal requirements.

The Ministry of Finance's inspection agency has recommended financial sanctions totaling 21,000 billion VND, including excluding nearly 1,956 billion VND from deductible expenses when determining taxable income for corporate income tax in 2021 and 2022; and imposing administrative penalties on two insurance companies, with fines totaling 310 million VND.

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