The Ministry of Finance (MOF) has released a report on the results of inspections of four insurance companies, showing that 73% of insurance policies sold via banks were cancelled after one year.
BIDV Metlife began selling insurance policies via BIDV in 2021. The 2021 audited financial report and the reports of the company showed that the insurance premiums sold via BIDV reached VND1.553 trillion, or 99.2% of total premiums. The premiums from new policies sold via BIDV reached VND452 billion, or 98.3% of total new premiums.
In 2021, the company issued 21,123 insurance policies via the bancassurance channel; the cancellation rate after the first year was 39.4%.
At Sun Life Vietnam, in 2021, the company sold insurance policies via Asia Commercial Bank (ACB) and TienPhong Bank (TPB).
The 2021 audited financial report and the company’s reports showed that the total insurance premiums sold via bancassurance channel totalled VND2.038 trillion, or 61.15% of total premiums, while premiums from new policies via the channel reached VND1.907 trillion, or 82.27%.
Of these, the total insurance premiums via ACB reached VND1.248 trillion (61.26%) and via TPB was VND789.484 trillion (38.74%).
In 2021, the company issued 80,117 insurance policies via bancassurance, of which 3,247 policies were cancelled during the consideration time (time limit for consideration of participation in insurance) (4.05%).
The rates of insurance policy cancellation and termination after the consideration time (the first year) were relatively high, 73% for TPB, and 39% for ACB.
In 2021, the company received 1,069 complaints from clients related to the insurance policies sold via bancassurance.
At Prudential Life Insurance Vietnam, the company issued 94,431 new insurance policies via bancassurance channel in 2021. The cancellation rate after the first year was 41%.
In the same year, the company received 1,799 complaints from clients related to insurance policies sold via bancassurance.
After investigations conducted following the complaints, the company discovered violations committed by 10 agents and 25 banking officers.
As for MB Ageas, in 2021, it sold 66,757 insurance policies via bancassurance, of which 3,946 policies were cancelled during the consideration time (5.91%). In the same year, it received 595 complaints from clients through the hotline (57.48%) and through divisions of the company (29.4%).
At a dialogue between businesses and local authorities organized in HCM City late last week, the director of a business complained that when he visited a bank and asked for a loan, he was told to take out an insurance policy if he wanted to borrow money at a preferential interest rate, and if not, he would have to pay a higher interest rate, reported VietnamNet.