Finance ministry tightens supervision over life insurers

The Insurance Supervisory Authority has requested life insurance companies to ensure the information in their product introduction documents complies with the law.

The order came amid complaints from many customers that they had been misled when signing contracts with some life insurers.

At a meeting on Monday, the authority, under the finance ministry, asked life insurance firms to urgently review their sales and appraisal processes, along with customer services to ensure compliance with the law.

Insurers are requested to strictly comply with regulations on disclosure of information on insurance operations, especially information related to the content customers need to pay attention to for each insurance product as prescribed in Article 119 of the Law on Insurance Business.

Companies need to control the information stated in their sales illustration tables and product introduction documents.

The regulatory agency also requires businesses to strictly deal with insurance agents who arbitrarily change information mentioned in the documents, leading to customer expectations about insurance benefits not matching reality.

The authority orders insurers to set up and publish hotlines and divisions with competent officers to receive, answer, and promptly handle customer feedback/questions about insurance contracts and settle insurance benefits without delays.

For customer letters reflecting insurance agent violations that should be handled by prosecuting and judgment enforcement agencies, insurers need to transfer information to them for settlement.

The authority also requested rectification of the appraisal and grant of insurance contracts. "The appraisal and issuance of insurance contracts must be suitable to a customer's financial ability and level of risk acceptance," it said.

Companies need to review all insurance agent training to ensure compliance with the insurance agent training program registered with the Ministry of Finance.

Finally, the authority required businesses to strengthen and supplement sanctions for insurance agents in case agents and employees violate the operating principles and obligations in accordance with the law and signed agency contracts.

Baoviet Life, Dai-ichi, Prudential, Manulife and AIA were the top life insurers in Vietnam in terms of premiums from 2015-2022, according to the companies' reports.