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

On the afternoon of June 30, the Ministry of Finance announced the results of an inspection of insurance sales through banks for four insurance companies, including: 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 show that there are many violations in selling insurance through banks as agents, especially in the consulting stage of bank staff and brokers.

There have been many controversies related to life insurance recently.

Some typical violations include: Not directly advising customers or not fully guiding them through the procedures and required documents in accordance with the company's regulations; Not ensuring the quality of advice on insurance products, leading to customers not understanding the insurance products; Allowing others (other personal agents, bank employees) to use iPads and agent codes to guide customers in entering information; Not properly implementing 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 sanctions by the Ministry in accordance with legal regulations, ensuring strictness and creating deterrence for businesses operating in the market. "The sanction decisions, after being issued, will be made public to the press and public opinion to ensure objectivity and transparency," the Ministry of Finance stated.

Based on the inspection results, the Ministry of Finance requested the four insurance companies mentioned above to strengthen management, supervision, and comprehensively rectify the activities of selling insurance products through credit institutions and foreign bank branches.

In addition, urgently develop a process to inspect and closely monitor the implementation of legal regulations in the insurance sector; proactively detect and handle shortcomings and violations in the process of implementing insurance operations at enterprises, minimizing the impact on customers' rights.

The Ministry of Finance also requires the four insurance companies mentioned above to ensure strict management of agents; prevent and promptly detect violations by insurance agents and individuals belonging to insurance agents.

There are measures to rectify the training, management and supervision of the quality of insurance agents. Accordingly, agents must fully meet the operating conditions and properly implement the contents and principles of insurance agency operations as prescribed by law.

At the same time, review the insurance agency operating expenses, ensure that the expenses must serve the insurance business, have full documents and evidence, and comply with legal regulations. Strengthen supervision of risk management, ensure financial safety criteria, capital safety of the enterprise in accordance with legal regulations.

The representative of the Ministry of Finance added that in 2023, in addition to urgently completing the legal framework in the insurance sector, this agency will continue to conduct inspections and examinations of insurance sales through credit institutions and foreign bank branches for 10 insurance enterprises.

At the same time, closely coordinate with the Banking Inspection and Supervision Agency - State Bank of Vietnam in inspecting, examining and supervising the provision of insurance services through banks. In case of detecting violations, they will be strictly handled according to the provisions of law.

According to the Ministry of Finance, in recent times, the insurance market in general and the insurance sales channel through banks in particular have grown rapidly. However, there has been a situation where employees of some banks have introduced, solicited, and forced customers to buy life insurance or investment-linked insurance when they come to deposit money or borrow credit.

Therefore, in 2022, the leaders of the Ministry of Finance directed relevant units to urgently organize inspections and checks on the sale of insurance through banks for the above 4 enterprises.

The life insurance market has recently revealed many shortcomings, especially the situation of "forcing" customers to buy insurance when borrowing money; ambiguous advice makes customers misunderstand the nature of insurance products...

In the Resolution of the 5th session recently, 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 consulting on corporate bond investment.

(Source: Lao Dong Newspaper)

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