Life insurer FWD Vietnam fined for unfair competition

FWD Vietnam Life Insurance Company Limited has been fined VND200 million ($7,975) for posting misleading information on its Facebook page, per a decision by the National Competition Commission (NCC) under the Ministry of Industry and Trade.

According to the commission, FWD Vietnam was found to have misled customers with information about the company, its products, and services to attract customers from competitors.

This misinformation, posted on the company’s Facebook page, included statements such as “Number 1 brand for customer experience for four consecutive years in the life insurance industry in Vietnam”; “Insurance company with the fewest exclusions in the market”; “100% cashless payment with no paperwork”; “First insurance company distributing through e-commerce channels”; and “The most diverse and widespread distribution network in Vietnam.”

After reviewing the case, the NCC concluded that these actions violated Article 45 of the Law on Competition, which prohibits deceptive or misleading practices that could attract customers from other businesses.

However, the commission acknowledged that FWD Vietnam had proactively taken steps to mitigate the consequences of the violation, voluntarily reported the misconduct, and cooperated with the NCC in the investigation. This was also the first time the company had committed such a violation.

As a result, the NCC imposed an administrative fine of VND200 million ($7,975), the minimum level in the range subject to the violation (VND200-400 million) and ordered FWD Vietnam to publicly correct the misleading information on its Facebook page at https://www.facebook.com/BaohiemFWDVietnam/.

FWD Vietnam, under Asia-based Pacific Century Group, was licensed by the Ministry of Finance in 2016, with its headquarters located on the 11th floor of the Diamond Plaza building, 34 Le Duan street, Ben Nghe ward, District 1, Ho Chi Minh City.

It is known for its multi-channel distribution system, including bancassurance partnerships with major banks in Vietnam such as Agribank, Vietcombank, and HDBank.

On October 22, 2024, FWD Vietnam signed a partnership agreement with TC Advisors Joint Stock Company (TCA), making TCA the official distributor of its insurance products. Following the partnership, sales from this channel surged by nearly 500% year-on-year to VND90 billion ($3.6 million) in November 2024, and about 260% to VND75 billion in December 2024.