Insurers have reported a sharp fall in premiums in recent months, after man scandals related to bancassurance have been revealed.

Millions of insurance policies have been sold via banks, but it is unclear how many people took out the policies on a voluntary basis and understood the real nature of the products.

Prudential and Manulife saw sudden increases in profits in 2022, while Dai-ichi, AIA and Bao Viet Life reported multi-trillion dong in profits last year.

The Ministry of Finance has announced strict measures will be taken against bank employees and credit institutions that force customers to buy insurance packages to get bank loans.

Some clients have lodged a complaint to Ministry of Finance (MoF), saying that deposits at Saigon Commercial JS Bank (SCB) include unwanted Manulife insurance policies.

Local credit institutions are enjoying a rise in bancassurance activities with more exclusive deals coming, according to industry insiders.

The insurance industry is forecast to continue gaining double-digit growth this year thanks to new bancassurance contracts signed late last year and the recovery of the economy.

Banks are pushing the sale of life insurance products (bancassurance) in the context of low credit growth since the beginning of this year due to the impacts of the COVID-19 pandemic.

Bancassurance income is set to have much potential to grow both at sector-wide and individual bank level, according to a brokerage.

Vietnam’s financial institutions are enjoying a rise in bancassurance activities, which promise strong growth amid the diminishing bank segment with regulator-driven bank consolidation.

Bancassurance is still in its infancy but is a promised land for insurers and banks alike.