PRUDENTIAL official information on the conclusion of the inspection of insurance sales through banks in 2022

Inspection conclusion No. 812/KL-BTC was conducted by the Ministry of Finance in the fourth quarter of 2022, for the fiscal year 2021 and related periods as required. This is a periodic inspection activity within the inspection and examination plan of insurance enterprises according to the provisions of the inspection law and the insurance business law.

Prudential proactively detects and handles violations in cases where insurance agents and bank employees do not strictly comply with company regulations.

Mr. Phuong Tien Minh - General Director of Prudential Vietnam said: "In addition to internal control activities as required by the Group, periodic inspection activities from state management agencies will help businesses to increasingly improve their quality management processes, become more effective and help improve the quality of customer service. This inspection activity has helped Prudential actively find solutions to improve and strengthen sales quality control activities, as well as understand the expectations of management agencies for businesses in product deployment and sales activities".

According to Mr. Minh, regarding issues related to agent quality management mentioned in the inspection conclusion, Prudential has proactively coordinated with partners to regularly monitor, detect and apply internal quality control measures. All cases of agent violations mentioned in this inspection conclusion have also been handled by Prudential according to the company's internal regulations as of 2021.

Mr. Minh emphasized that the issues raised in the inspection conclusion are opportunities for businesses to continue improving internal processes to ensure the highest compliance with legal regulations.

Prudential commits to focus on service quality, healthy and sustainable development of the bancassurance business

To ensure the quality management of insurance consulting and customer care services, Prudential has implemented a series of synchronous activities during its business operations, including:

- In 2021, in order to evaluate the quality of insurance agents' advice to new customers, Prudential made more than 76,000 (76 thousand) welcome calls, directly contacting customers by phone during the 21-day consideration period.

- Also in 2021, Prudential conducted more than 400 “mystery shopping” assessments to check the quality of advice from insurance agents and bank employees. The number of “mystery shopping” increased by more than 70% with nearly 700 in 2022.

- Continuously conduct compliance awareness and customer service training courses for sales team.

In the first 6 months of 2023, Prudential has coordinated with partner banks to conduct 100% of sales quality inspection calls to ensure that customers are properly and fully advised and that customers clearly understand their benefits when participating in insurance. In addition, Prudential has also paid more attention to assessing the input insurance contract, ensuring that customers participate in insurance according to their needs and financial capabilities.

Most recently, Prudential and its partner VIB Bank have committed to extend their cooperation contract until 2036, with the agreement on the quality of sales consulting and customer service being the focus, through the establishment of a Customer Conduct Standards Management Committee. This agreement emphasizes the sale of only suitable insurance products to suitable customer groups through the allocation of product portfolio proportions and customer groups. In this agreement between Prudential and VIB, for the first time, the minimum contract retention rate is specifically stipulated.

Prudential is committed to strengthening management measures, aiming at the most important goal of customer trust and satisfaction.

The inspection conclusion mentioned a number of existing problems in the insurance business operation and required the enterprise to review and strengthen stronger measures, including: the implementation of insurance products; management, detection and handling of violations by insurance agents and individuals of insurance agents to be more effective, timely detection and prevention of violations by insurance agents; strengthening financial management of insurance agency operating costs.

“Prudential emphasizes compliance and close coordination with regulatory agencies so that the insurance industry can develop better and better, worthy of the expectations and goals in the Insurance Market Development Strategy to 2030 set by the Ministry of Finance. As a life insurance company with a long history of operations in many countries and the largest customer base in Vietnam with more than 7 million customers over the past 24 years, we have the responsibility to listen and improve the process, ensure satisfaction, thereby strengthening customer trust in the industry,”Mr. Phuong Tien Minh shared.

In the 3 years from 2020-2022, Prudential paid more than 2,700 billion VND in taxes to the state budget, of which 953 billion VND in 2022 alone. By the end of 2022, Prudential's total assets reached approximately 162,000 (162 thousand) billion VND, an increase of 9.2%; of which assets reinvested in the economy reached nearly 144,000 (144 thousand) billion VND, an increase of 11%. For many consecutive years, Prudential has received a Certificate of Merit from the People's Committee of Ho Chi Minh City for its outstanding achievements in directing, managing and paying state budget revenue. Currently, Prudential is in the Top 100 enterprises paying the most taxes in Vietnam.

About Prudential Vietnam

Prudential Vietnam Life Insurance Company Limited (Prudential) is a member of Prudential plc, a group providing life insurance, health insurance and wealth management solutions in 24 markets across Asia and Africa. Prudential's purpose is to help people achieve the best in life. Prudential provides comprehensive and affordable healthcare solutions, helps protect and grow wealth, and helps people save for their life goals.

With 24 years of operation in Vietnam, Prudential has continuously focused on expanding the life insurance market, changing people's perception of insurance. As of December 2022, Prudential Vietnam has developed a team of more than 126,000 professional consultants, with more than 328 General Agency offices, Transaction offices and Customer Service Centers, and a network of 7 reputable partner banks, always ready to serve more than 2.1 million customers nationwide.

With the slogan "Listen - Understand - Act", Prudential affirms its commitment to always put customers at the center of all activities, providing creative and comprehensive solutions to protect financial security, helping customers increase their assets and proactively take control of their life plans.

PV