The Insurance Management and Supervision Department (Ministry of Finance) has publicly announced the inspection conclusion on the selling of insurance through banks of Mirae Asset Prevoir Life Insurance Company Limited and Cathay Vietnam Life Insurance Company Limited.
The inspection is carried out according to Decision No. 2540/QD-QLBH dated August 27, 2024 for Cathay Vietnam and Decision No. 3067/QD-QLBH dated October 15, 2024 for Mirae Asset Prevoir.
After the inspection, the inspection team announced the conclusion on the implementation situation, the problems that need to be overcome as well as the level of compliance with the law of the two enterprises in insurance distribution activities through credit institutions and foreign bank branches.
According to the inspection conclusion, the two companies need to review and complete the process of implementing insurance through banks to ensure full compliance with legal regulations. The Conclusion also mentioned compliance with regulations on insurance agency activities and costs for insurance agents related to the sale of insurance products through banks.
Faced with these shortcomings, the inspection team has made recommendations for businesses to rectify their business operations.
In particular, Cathay Vietnam Life Insurance Company Limited is required to review, complete the development, implementation and supervision of the implementation of professional processes and internal regulations of the Company to implement the provision of joint insurance products through credit institutions.
Review and strengthen the implementation of supervision of insurance agency activities. In addition, review the expenses of insurance agency operations, ensure compliance with legal regulations on insurance business and other relevant laws; review and adjust the accounting of expenses that are not in accordance with legal regulations on insurance business, and be responsible for complying with legal regulations on taxes.
Similarly, Mirae Asset Prevoir Life Insurance Company Limited must 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 the implementation of processes and regulations, regularly inspect to ensure compliance with the law, professional processes and internal regulations of the Company.
The promulgation of regulations related to insurance agency activities must ensure that agency management is strictly implemented, prevent, detect early and handle violations by insurance agents and individuals under the insurance agency in performing insurance agency activities to ensure the rights of insurance participants.
At the same time, review and rectify the management of insurance agents and individuals under organized insurance agents. In addition, it is recommended to review the expenses of insurance agents, ensure the expenses of insurance business activities according to the law and review and adjust accounting and accounting work according to the law.
