HCMC – The Ministry of Finance has found numerous irregularities in consulting services during a recent inspection of insurance companies involved in bancassurance.
The inspection focused on four life insurance companies that distribute insurance products through banks, namely Prudential, MB Ageas Life, BIDV Metlife and Sunlife.
According to the Ministry of Finance, the inspection found that irregularities primarily happen at the stage of consulting services provided by bank tellers and insurance brokers.
Some common irregularities include failure to adhere to the approved price list by the Ministry of Finance, lack of clear and comprehensive advice on procedures, and insufficient assurance of consulting quality, leading to clients’ vague understanding of insurance products.
The inspection’s findings also indicated that bancassurance constitutes around 50% of new insurance policies and life insurance premiums at many insurers. However, after one year of execution, policy cancellation rates reach 70% as clients were forced to purchase insurance when making deposits or seeking loans at banks.
Insurance companies have been instructed to rectify all their bancassurance activities, including personnel training, management, and supervision of insurance agents.