Headquarters of the Ministry of Finance in Trần Hưng Đạo Street. — VNA/VNS Photo
The Ministry of Finance (MoF) says that since its hotline for insurance products went into operation on February 2023, the ministry already received and handled 213 petitions over the phone and 479 via email.
According to the Finance Ministry, in the first seven months of the year, the total assets of insurance companies reached more than VNĐ870 trillion (US$37 billion), an 11.77 per cent rise over the same period last year. Total assets of non-life insurance companies were estimated to stand at VNĐ118 trillion while life insurance companies stood at VNĐ751 trillion.
Meanwhile, insurance companies have invested VNĐ727.9 trillion back into Việt Nam’s economy with an increase of 14.19 per cent over the same time last year. Of this figure, the non-life sector contributed VNĐ65.5 trillion and the life insurance sector made a contribution of VNĐ662.4 trillion.
Total insurance premium revenue was estimated at VNĐ130 trillion or down 5.54 per cent over the same period last year. Claim payments stood at VNĐ41 or a year-on-year increase of 23.51 per cent.
The Ministry has required the Insurance Supervisory Authority to continue studying and compiling a draft decree to amend the existing decrees providing penalties for administrative violations in the field of insurance.
The Authority is also asked to submit to the Finance Ministry the inspection results regarding Dai-ichi Life Insurance Vietnam Co., Ltd.
At the end of June this year, the Ministry of Finance issued inspection conclusions after examining the sale of insurance products through agency channels of four life insurers including Prudential Vietnam, MBAgeas Life, BIDV Metlife and Sun Life Vietnam.
Recently, the sale of insurance products through agency channels, including banks of some insurers, saw many violations, especially regarding the consultation of bank staff and brokers.
The move was in response to numerous complaints that some banks forced customers to buy life insurance policies in order to access loans. Others said their savings deposits were partially used to purchase life insurance without their knowledge.
Minister of Finance Hồ Đức Phớc said that the insurance quality had not yet met with its rapid growth. Recently, the insurance market, especially life insurance, had exposed some problems involved in consulting, customer care and insurance benefits for customers.
Phớc added that in the past, insurance products were often sold through traditional methods. In recent years, many other distribution channels had been used by insurance companies with the sale of insurance products through banks known as bancassurance.
Bancassurance helped to diversify insurance operations but also created more complexity in recent years. Therefore, it was necessary to review and adjust the insurance market.
The Ministry of Finance would continue to improve mechanisms and policies involved in insurance products and publicise transparent information about products and businesses. By doing so, customers could easily access insurers’ information when choosing suitable insurance products.
In addition, inspection and supervision would be further strengthened by the Insurance Supervisory Authority. Any violations would be strictly handed by the Authority.
The Ministry of Finance had also suggested reviewing insurance products and simplifying rules and terms while enhancing the transparency of information about insurance products.
Insurers were asked to review and improve the quality of customer care services and enhance professional processes, internal regulations, and policies on risk management. Meanwhile, training courses to raise the quality of insurance agents should be regularly conducted.
Customers should also carefully study their rights and obligations when deciding to buy insurance products in order to protect their benefits while minimising disputes. — VNS