Commercial banks can continue to sell investment-linked insurance products through the bancassurance channel.

The sale of insurance products through agency channels, including banks of some insurers, saw many violations, especially regarding the consultation of bank staff and brokers, according to the Ministry of Finance’s inspection result report.

Instead of the modest contribution made previously, the insurance business segment, or bancassurance (banks co-operate with insurers to sell insurance products), has now become the main source of income from service activities for many banks.

A plan approved by Prime Minister Nguyen Xuan Phuc targets that 11 percent of Vietnam’s population will have bought life insurance by 2020, and the rate will reach 15 percent by 2025.

The model of distributing insurance products via banks (bancassurance) has contributed significantly to increasing insurers’ revenue, but experts warned that the overheating growth of the business could cause insurers to have to pay compensations due to mistakes made by bank employees, who also act as insurance products consultants.

The Bao Viet Group was listed among the nation's top 50 brands, with a brand value of 79 million USD and a brand rating of A plus, according to London-based Brand Finance.