Circular No. 67/2023/TT-BTC (Circular 67) provides detailed guidance on a number of articles of the Law on Insurance Business and Decree No. 46/2023/ND-CP, which has just been issued, contributing to further perfecting the system of legal documents on insurance business activities.
Circular 67 has amended the limits on "commissions" to require a longer distribution of commission payments.
According to Mr. Ngo Viet Trung, Director of the Department of Insurance Management and Supervision (Ministry of Finance), Circular 67 contains many important contents to improve the quality of insurance agency activities, focusing on developing in depth rather than developing in breadth, such as regulations on enhancing transparency in agency activities, especially agency activities through credit institutions and foreign bank branches.
For example, regulations require that each branch and transaction office of a credit institution must set up a separate transaction counter to conduct insurance agency activities, separate from other business areas of the credit institution.
Or the regulation requires insurance agents to record the insurance consultation process for insurance products such as investment-linked insurance products. Because this is a rather complicated product, with high requirements for awareness and finance of participants.
"We want to improve the quality of consultation, avoiding consultants "forcing" customers to participate in insurance products that do not suit their needs and financial capabilities," said Mr. Trung.
Circular 67 also stipulates that banks operating as agents must clearly advise customers that insurance products distributed through credit institutions are not products of the credit institution. Participation in insurance products is not a mandatory condition for using other services and products of credit institutions.
Credit institutions are not allowed to advise, introduce, offer, or arrange the conclusion of investment-linked insurance contracts for customers within 60 days before and after 60 days from the date of disbursement of the entire loan.
Request for longer "commission" payout period
In terms of regulations on tools to protect customers' rights, as well as for insurance companies to check and monitor the activities of agents in consulting and concluding contracts with customers, according to Mr. Trung, Circular 67 requires documents in insurance contracts: for long-term life insurance products with a cash value, insurance companies must be responsible for providing a paper summary document to the insurance buyer and must have confirmation from the insurance buyer to help the insurance buyer more easily access information, better understand the product, rights and obligations when participating in a life insurance contract before deciding to sign the contract...
On the business side, Circular 67 allows insurance companies to participate in the process of checking, monitoring, and handling violations regarding the quality of agency activities of employees in the agency organization.
Insurance enterprises must conduct periodic supervision and inspection to ensure the quality of insurance product introduction and consultation activities of agency staff; promptly coordinate with agency staff to inspect, review, and handle complaints from insurance buyers related to consultation by agency staff and handle violations (if any).
Notably, Circular 67 also amends the limits on "commissions" in the direction of requiring a longer distribution of commission payment periods, in order to encourage agents to focus on the quality of exploitation and maintenance of insurance contracts. At the same time, it adds limits on bonus costs and agent support to ensure the business efficiency of insurance enterprises, aiming to develop quality rather than focusing on quantity...
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