Life insurance market reports high growth

The life insurance market, according to preliminary statistics, continued to have significant growth in the first six months of 2010 with 25 percent increase in revenue from new insurance policies (not including Bao Viet).

The optimistic signs of the market have encouraged life insurance businesses to have faster move. Till the end of 2010, they plan to simultaneously launch series of new products, strongly focusing on the segments for retirement insurance, group insurance and health insurance, etc.

According to Dai-ichi Life Vietnam, in the first six months of 2010, they have achieved over 120 billion dong in new policies’ premium, obtaining growth rate of 48 percent compared to the same period of 2009, nearly double the average growth rate of the market. In June, Dai-ichi Life Vietnam has issued an insurance policy of 15 billion dong premium to a client in Hochiminh city. This is a record for the highest premium ever in life insurance sector. Till May 2010, Dai-ichi Life Vietnam had put into operation six general agents and it will continue to expand the network till the end of 2010. Dai-ichi Life Vietnam expects to launch a new health product in July 2010.

Other insurance companies also have reported strong growths such as ACE Life (achieving 40 percent growth in new policies’ premium), new member Korea Life Vietnam (in the second quarter obtaining nearly 80 percent growth in new policies’ premium compared to the same period of last year). After officially went into strategic partnership with ILA in order to provide more value added products to the clients, Korea Life Vietnam has launched a specialised product for the clients who are preparing for their retirement; this is in endowment insurance product group. In the near future, Korea Life Vietnam will continue to open its branch in Binh Duong and offer more products to the market.

Being more or less affected by the parent corporation’s unsuccessful merger with Prudential, in the first six months of the year, AIA still maintained good growth in premium for new policies. It also has expansion and new product launching plans in the last months of the year.

According to unofficial statistics, total revenue from new policies’ premium of Prudential Vietnam in the first six months has gone up by 27 percent. Market shares (by premium revenue) of Prudential remained stable at 40 percent. In the future, Prudential will expand its insurance channel through banking system with major banking partners; continuing to develop general agent network, especially in major cities.
Prudential Vietnam also plans to bring to the market a number of specialised insurance products in the shortest time possible. The company achieved impressive growth of 33 percent in new policy revenue.

The competition between life insurance companies is expected to become exciting due to new moves in the market; especially the future participations of some new foreign insurers (may be in late 2010).
Leaders of the existing insurance companies not only have to encourage employee retention but also consider offering more value added products into the market to the clients. The new comers have certain advantages in utilising and enhancing the advantages of the existing insurance products and adding value to attract clients. Therefore, the competition will become fiercer and clients will certainly be the ones who benefit the most.

Tags: life insurance market, Vietnam insurance, Vietnam insurance market

Posted by VBN on Jul 16 2010. Filed under Insurance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry