Several commercial banks had suspended their bancassurance services as of July 1, 2024, when the 2024 Law on Credit Institutions took effect. This is attributable to the absence of clear guidelines for the regulation that prohibits banks from associating the sale of insurance policies with the provision of banking products and services in any form. The 2024 Law on Credit Institutions was passed by the National Assembly (NA) at a time when the life insurance sector is mired in numerous scandals. An NA deputy proposed that commercial banks be disallowed to sell insurance due to unresolved issues between bank tellers and customers. Another deputy of the legislature suggested either banning the sale of life insurance through banks or legally mandating the Government to regulate the trading of insurance products with credit institutions working as agents, ensuring openness, transparency, and protection for both borrowers and depositors. Reflecting the NA deputies’ proposals, the Law on Credit Institutions stipulates that commercial banks can operate as insurance agents in accordance with the Law on Insurance Business. The scope of the insurance agency is to be regulated by the governor of the State Bank of Vietnam (SBV) to align with the nature and operations of […]