In 2022, the Ministry of Finance conducted an inspection of insurance sales through banks at AIA Vietnam Life Insurance Company. The investigation revealed that 57% of AIA policies sold through banks were canceled after the first year, and some employees who were not eligible still sold insurance.
The Department of Insurance Management and Supervision found that some banking partners, such as VPBank, had employees selling insurance without proper training and certification. Additionally, AIA was found to be paying commissions and bonuses to employees who had not completed the required training. The Ministry of Finance determined that the calculation of bonus payments was not in accordance with the law and requested AIA Vietnam to strengthen its management of insurance sales activities through banks.
The Ministry of Finance emphasized the need for regulations to ensure that customers are advised appropriately and fully aware of benefits, fees, and risks in cross-selling insurance through banks. As a result, industry leaders are moving towards stricter and healthier practices in bancassurance sales.
The Ministry of Finance is addressing violations related to regulatory compliance and consumer protection in various areas such as improper use of agents, negligent accounting practices, and tax-related issues. This focus on transparency aims to improve the integrity of insurance sales through banks and protect consumers from fraudulent practices.
Overall, the Ministry’s efforts aim to establish a more regulated environment for bancassurance sales by improving transparency and consumer protection while ensuring compliance with legal requirements.
