In 2022, AIA Vietnam Life Insurance Company reported that 57% of its insurance contracts sold through banks were canceled after the first year. The Department of Insurance Management and Supervision, under the Ministry of Finance, conducted an inspection of insurance sales through banks at AIA Vietnam in 2022 and found that some bank employees at VPBank and other banks were not fully trained in insurance products but were still introducing customers to contracts. These employees were receiving commissions and bonuses without completing the necessary training.
Furthermore, the inspection revealed that AIA paid significant allowances and bonuses to personal insurance agents in the bancassurance channel, but the Ministry of Finance found that the bonus payment calculation was not in accordance with the law. In response to these violations, the Insurance Supervision Administration requested AIA to review and strengthen the management of insurance sales through banks to reduce contract cancellations and ensure buyers’ interests are protected. The agency emphasized the importance of ensuring that customers are advised appropriately and informed of all relevant details before purchasing insurance.
After stricter oversight, some insurance units have started requiring banking partners to commit to contract maintenance rates. The Ministry of Finance has conducted inspections of other insurance companies for similar violations, imposing administrative sanctions and collaborating with the Tax Department to address tax issues. Despite these measures, it is clear that there is still much work to be done in ensuring that customers are adequately protected when purchasing insurance through banks.
