Previously, the Ministry of Finance's inspection teams conducted a specialized inspection of the sale of insurance products through credit institutions and foreign bank branches at Mirae Asset Prévoir Life Insurance Company Limited and Cathay Vietnam Life Insurance Company Limited.

From the inspection results, the Inspection Team recommends handling measures for each company.

Specifically, for Cathay Life Insurance Vietnam Co., Ltd., it is necessary to review and complete the development, implementation and supervision of the implementation of the company's internal business processes and regulations to deploy the provision of joint insurance products through credit institutions.

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Illustration: Pham Hai

At the same time, review and strengthen the implementation of supervision of insurance agency activities.

In addition, review insurance agency operating expenses, ensure compliance with legal regulations on insurance business and other relevant laws; review and adjust accounting of expenses that are not in accordance with legal regulations on insurance business, and be responsible for compliance with legal regulations on taxes.

The inspection team requested Mirae Asset Prévoir Life Insurance Company Limited to review and strengthen the management of the implementation of insurance product sales through credit institutions and foreign bank branches;

Review, complete the development, implementation and supervision of procedures and regulations, regularly inspect to ensure compliance with laws, business processes and internal regulations of the company.

The issuance of regulations related to insurance agency activities must ensure that agency management is strictly implemented, preventing, early detecting and handling violations by insurance agents and individuals belonging to insurance agencies in the implementation of insurance agency activities to ensure the rights of insurance participants.

In addition, it is necessary to review and rectify the management of insurance agents and individuals belonging to insurance agency organizations.

On the other hand, it is recommended to review insurance agency operating expenses, ensure insurance business operating expenses are in accordance with legal regulations, and review and adjust accounting and bookkeeping work in accordance with legal regulations.

Recently, the Ministry of Finance has strengthened many solutions to rectify negative aspects and deviations in the implementation of insurance product exploitation activities in the life insurance market in general and the distribution channel through banks (bancassurance) in particular.

In 2022-2023, the authorities inspected and examined 10 out of 17 life insurance companies that sold insurance through credit institutions and foreign bank branches.

The inspected enterprises have premium revenue exploited through the bancassurance channel accounting for 96.83% of the total premium revenue exploited through this channel of the entire life insurance market.

The inspection discovered violations, such as violations in issuing procedures and regulations; violations in complying with product fee schedules; insurance agents not complying with company regulations and legal regulations.

The Ministry of Finance's inspection agency has recommended financial handling of VND 21,000 billion, of which nearly VND 1,956 billion is excluded from deductible expenses when determining taxable income for corporate income tax in 2021 and 2022; administrative sanctions against 2 insurance companies, fined VND 310 million.

Compulsory motorbike insurance purchase: Collected nearly 740 billion, paid more than 28 billion VND. The latest data on compulsory civil liability insurance for motorbikes, mopeds and similar motor vehicles shows that in the 11 months of 2024, the compensation rate only reached 4% of total revenue.