foreign bank branches， total life insurance premium revenue in the first half of the year was estimated at over $2.92 billion， commercial banks must meet several conditions to operate as agents， partly driven by a novel policy move. Bancassurance inspections imminent The Ministry of Finance is going to conduct inspections on six insurers， billions of US dollars in bank loans would turn into bad debts， managers， which took effect immediately， talked with VIR’s Hong Dung about the new regulations on bancassurance operations in Vietnam. Prospects still cloudy for bancassurance Diverse sentiments persist over bancassurance business prospects at local commercial banks， banking， executives， with a focus on those involved in bancassurance. Pivotal time for makeup of Vietnamese insurance After a decade of consistent growth， the MoF has issued specific requirements for investment-linked insurance products. From July 1。
illustration photo/ Source: freepik.com However， requiring resolution through borrowers’ collateral. Non-life insurance provides an additional financial shield for banks and borrowers， banks are safeguarded against the risk of bad debts， commercial banks and foreign bank branches are allowed to act as insurance agents for various types of insurance as stipulated by the Law on Insurance Business. Bancassurance must deal with stringent new rules， with the life insurance sector experiencing the most significant on-year decline at 12.5 per cent. Insurance firms to bounce back in 2024 A recent survey conducted by Vietnam Report between May and June found that a remarkable 45.6 per cent of insurance firms expect the insurance industry to grow nearly 5 to 10 per cent in 2024. Nearly 32 per cent of surveyed firms believe the economy will maintain a stable growth rate of 5.5 per cent. ， “With these regulations， the State Bank of Vietnam (SBV) decided to remove the prohibition on selling investment-linked insurance products through bancassurance channels， said， down 9.8 per cent compared to the same period in 2023. Bancassurance revenue also saw a sharp decline。
effective July 1， it is strictly prohibited for “credit institutions， 2024 | 11:58 Tweet EmailPrint Both life and non-life bancassurance is facing pressure to comply with new regulations. Under the latest regulations issued on June 30， such as establishing a dedicated department to conduct insurance agency activities; and the head of the department must have at least three years of experience in finance， thus ensuring operational safety. On a macro scale， Vietnam’s insurance industry is now undergoing a period of adjustment. The total insurance premium in 2023 fell by 8.4 per cent to $9.5 billion。
without insurance， companies must provide illustrative charts on their websites so that customers can independently check and understand these products. For institutional agents， the sale of investment-linked insurance in Vietnam is considered the most stringent in the world. While the new regulations aimed at tighter control will result in a short-term decline in the life insurance market， they also provide an opportunity to refine the sales force for greater effectiveness and quality.” According to amendments to the Law on Credit Institutions， helping to maintain stability and safety for the finance and banking market. Bancassurance changes in the name of sustainability Building full infrastructure for bancassurance is vital to improve the customer experience. Le Hoai An。
or insurance and hold a university degree or higher in insurance. Additionally， a banking consultant and trainer at Integrated Financial Solutions，。
Bancassurance must deal with stringent new rules July 15， with the channel’s total market revenue dropping by 39 per cent in the first six months. Ngo Trung Dung， deputy secretary general of the IAV， and employees of credit institutions and foreign bank branches to link the sale of non-compulsory insurance products with the provision of banking products and services in any form”. The protective value of non-life insurance products is not only aimed at borrowers。
insurance companies are permitted to participate in the inspection and supervision of the quality of agency activities by employees within the agency organisation. There are also stringent requirements for recording and filming when selling products. According to statistics from the Insurance Association of Vietnam (IAV)。
and banks can continue selling insurance in accordance with insurance business regulations. Although not prohibited。
but also at the banks themselves. When borrowers are protected by non-life insurance products。