Finance ministry to release life insurer inspection results

Vietnam’s Ministry of Finance has concluded its inspections into four life insurers and will publicize the results later this month, the ministry said at a regular press conference on Friday.

The inspections have focused on sales of insurance policies through banks, and some wrongdoings had been uncovered, Doan Thanh Tuan, vice head of the Insurance Supervisory Authority, said at the meeting.

Earlier this month, the ministry assigned the authority to inspect Prudential Vietnam, MB Ageas, BIDV Metlife and Sunlife Vietnam.

The move was in response to multiple complaints that some banks forced customers to buy life insurance policies in order to access loans. Others have said their savings deposits were partially used to purchase life insurance without their knowledge.

Particularly, some customers at Saigon Commercial Bank (SCB) complained that they had received insurance policies instead of saving certificates when they deposited money.

The finance ministry told the media that there have been no further updates regarding Manulife’s pledge to compensate customers VND800 billion ($34 million). The Ministry of Public Security has so far received 579 complaints.

The market has recently witnessed a crisis of confidence because many residents are frustrated with the quality of life insurers, including bancassurance services, a popular channel through which life insurers and banks cooperate to sell insurance policies, Minister of Finance Ho Duc Phoc said at the National Assembly’s ongoing meeting.

Nguyen Thi Thuy, vice head of the National Assembly's (NA) Judiciary Committee, said at the legislative body's meeting: "Probes are needed to make it clear whether customers in the industry have been deceived."