Nearly 400 complaints about insurance distribution through banks on Ministry of Finance hotline

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On March 30, at the Ministry of Finance's regular press conference for the first quarter of 2023, the Ministry of Finance's Insurance Supervisory Authority (ISA), Doan Thanh Tuan said, after more than a month, the Ministry of Finance announced the hotline: including phone number and email to quickly receive information, complaints and recommendations from customers about the distribution of insurance through banks, the unit has received 178 phone calls and 218 emails.

According to Mr Tuan, the handling of the received information is carried out by the ISA following the State's general regulations. The ISA has sent staff to receive information directly, classify the reflected information, and make initial verification.

The Ministry said the distribution of insurance products through banks had proliferated and has made specific contributions to the total revenue of Vietnam's insurance market. This activity accounts for about 20% of the total premium revenue of the life insurance market and about 14% of the total premium revenue of the non-life insurance market.

However, there is a problem some bank staff force customers to buy insurance when they sign a loan with the bank or provide inadequate advice, causing some customers to confuse insurance products with banking products or request customers to buy insurance associated with loans.

Therefore, in 2023, the Ministry will continue strengthening the inspection work with the State Bank (SBV) to inspect insurance distribution activities through banks. The inspection is expected to occur at insurers and partner banks that distribute insurance products. The Ministry of Finance will also perfect mechanisms and policies to ensure strict management of commercial banks and insurance companies in selling insurance products through banks, said the Ministry of Finance.

Speaking more about this issue, the Deputy Director of the ISA said that in 2022, four insurance companies were inspected and are waiting for inspection results.

According to Mr Doan Thanh Tuan, the ISA discovered certain violations after the inspection, so the inspection conclusions will be made public as soon as possible.

Regarding the above issue, at the press conference, Deputy Minister of Finance Nguyen Duc Chi said that the Ministry had received a lot of information reflecting on the status of staff of some banks introducing or forcing customers to buy life insurance or investment-linked insurance when they come to deposit or borrow money at banks. The hotline is always available. As for the inspection, the Ministry of Finance will announce inspection conclusions soon and strictly handle violations.

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Together with the Ministry of Finance, the State Bank has also issued many instructions to require credit institutions to strictly abide by the laws and regulations of the State Bank on business activities and insurance agents. Furthermore, the SBV affirmed that it would take strict measures for employees or business units who "force" customers to buy insurance and credit institutions take full responsibility before the law for this act.