|MARKET OVERVIEW IN THE FIRST 6 MONTHS OF 2022 Part 2|
Vietnam’s social economy continues to develop, the income of the population, especially the rich middle class, is increasing, which is an opportunity to develop life insurance. Savings deposit interest rates did not increase, the stock market showed signs of slowing down after a period of hot growth, making competitive pressure on life insurance somewhat reduced.
Life insurers continue to launch a number of new products on the market, including supplementary pension insurance for compulsory retirement insurance that is limited to a cap of 20 months basic salary, attracting participants. Join voluntary health insurance and high-quality health insurance. This has had a positive impact on the growth of the Vietnamese life insurance market.
The number of new mining contracts during the period was 563,291, up 12.7%, of which the main product 268,621 contracts was up 10.5% and focused mainly on personal insurance products. The number of expired insurance policies in the period was 474,687, down 27.6%, of which the main product was 247,833 policies.
The number of insurance policies reinstated during the period was 83,389, down 35.25%, of which the main product was 42,931 policies. The total number of valid policies until the end of the period was 6,946,539, up 2.85%, of which the main products reached 3,655,954 increased by 2.19%, mainly individual mixed insurance products accounted for 3,301,839 policies.
New exploitation contracts in the period led by Bao Viet 109,591 contracts of main products and 152,453 contracts of complementary products, followed by Prudential 98,286 contracts of main products, 94,618 contracts of complementary products.
Contracts valid until the end of the period led by Bao Viet 1,628,521 contracts of main products, 1,593,155 contracts of complementary products, followed by Prudential 1,441,027 contracts of main products 1,214,988 contracts of products. supplementary.
2. Total insurance liability
Total insurance liability of the in sure As the total amount of insurance policies continues to increase. The insurance amount of newly exploited insurance policies is 17,036 billion VND, up 19.6%, of which the main product is 12,233 billion VND, up 28%.
Insurance amount of expired insurance policies in the period was 7432 billion dong, down 9.95%, mainly main products, 5,165 billion dong, down 22.42%. The total amount of insurance effective to the end of the period was 175,128 billion dong, up 11.27%, of which main products were 11,696 billion dong, up 12.19%, mainly mixed personal insurance products accounted for 92,973 billion dong, up 5.21%.
3. Premium revenue soars
Insurance premium revenue in the first year reached VND 702 billion, up 25.8%, of which main products reached VND 673 billion, annual insurance premium reached VND 851 billion.
Insurance premium revenue of the whole market reached VND 4,426 billion, up 8.67% – this is the highest growth rate in the past 3 years, of which main products reached VND 4,287 billion, up 8.41%.
Leading in revenue was Prudential with 1,816 billion dong, up 7.29% and accounting for 41% of the market share, followed by Bao Viet with 1,612 billion dong, up 5% and accounting for 36.5% market share.
Especially, after acquiring Bao Minh CMG, Dai-ichi still maintained revenue growth of 29%, reaching over VND 205 billion. New businesses also have a high revenue growth rate such as Prevoir reaching 21.3 billion VND, ACE Life reaching 58 billion VND.
4. Insurance payout increases
The entire market has paid for insurance of VND 1657 billion, of which insurance benefits are VND 1,082 billion and refund value is VND 593 billion. In the above payment amount, over 55 billion VND is included, meaning Bao Viet has the highest payout amount of 748 billion VND for insurance benefits and 238 billion VND for the refund value.
Followed by Prudential with 167 billion VND for insurance benefits and 241 billion VND for refund value, Manulife paid 123 billion VND for insurance benefits and 70 billion VND for refund value. The amount of payment is increasing day by day, it is natural that the number of mature insurance policies is increasing day by day.
Most of the customers who receive the payment when the insured event occurs or the insurance policy expires highly appreciate the insurer’s implementation of the contract’s commitments. However, the phenomenon of insurance fraud and the adjudication.
5. Number of insurance agents
The total number of new agents recruited during the period was 22,918 people, bringing the total number of agents present at the end of the period to 66,951 people. Compared to the same period in 2006 it decreased by 7.73%, but compared to the end of March 2007, it increased.
This proves that insurance businesses improve the quality of agents by screening, selecting and training more closely in parallel with agent development. Labor productivity of insurance agents has increased markedly, on average, an agent has exploited 8.5 new contracts in the past 6 months, including 4.1 contracts for main products, increasing revenue by 10.6 million VND, collecting insurance premiums.
66.8 million dong and manages 105 insurance policies, including 55.2 main product policies. Insurers continued to implement the regulation on dealing with blacklisted agents, put into good play the AVICAD agent management software, and at the same time approved the scheme to reward agents with many years of dedication to insurance life.
It is expected that in the last 6 months of the year, circulars guiding the implementation of Decree 45 and Decree 46 will be issued, paving the way for the approval of a number of investment-linked insurance products as well as additional licensing for a few life insurance businesses to go public.
Into business. This will make the life insurance market promise to have a longer and stronger growth in the coming time.