According to the Insurance Association of Vietnam, the original premium revenue of the non-life insurance market in the first six months of 2021 reached VND29,592 billion, up 9.3% over the same period last year, with the Top 5 by the market share unchanged. The data of the Insurance Association shows that Bao Viet Insurance is the leader in terms of total original premium revenue of approximately VND4,593 billion, holding a market share of 15.52%; while strong investment in health insurance products and InsureTech insurance is recorded.
Despite facing many difficulties due to complicated developments of the Covid-19 pandemic, the overall market still maintains its growth rate as companies have promptly changed their business strategies to focus on investing in digital technology and improving customer experience.
Top 5 by the market share: Bao Viet Insurance, PVI, PTI, Bao Minh, and MIC
Data from the Insurance Association of Vietnam shows that, in the first six months of 2021, the total original premium revenue of the whole non-life insurance market reached VND29,592 billion, up 9.3% over the same period last year. Insurance companies have paid out VND9,691 billion for insurance benefits, equivalent to 32.8%, up 6.9% compared with 2020.
Bao Viet Insurance continues to be the market leader with revenue of VND4,593 billion, accounting for 15.52% of the market. The second place belongs to PVI with revenue of VND4,490 billion, holding a market share of 15.17%; followed by PTI with VND3,022 billion, accounting for 10.21%, Bao Minh with VND2,169 billion and 7.33% market share, and MIC with VND1,904 billion and 6.43% market share… Despite the difficult conditions of the economy, in the spirit of accomplishing the dual goals of the Government, on the basis of the solid foundation of the largest and longest-established enterprise in the market, Bao Viet Insurance secures its No.1 position in the non-life insurance market.
According to experts in the insurance industry, the results show that insurance companies are proactive in adapting to the new situation. Insurance companies have promptly developed new products in line with customer needs; diversified forms of distribution, especially online channels; increased online transactions; built a comprehensive digital ecosystem to reach further and closer to customers; brought more and more convenient utilities to customers… Accordingly, it can be seen that customers are becoming more and more aware of the importance and meaning of insurance, and actively taking out insurance to protect themselves and their families against unpredictable risks.
Covid-19 is an opportunity for digital transformation, improving the customer experience
It can be said that Covid-19 has not only brought difficulties and challenges to insurance businesses, but also an opportunity for them to affirm their strong position as they are keen on finding new directions to continue growth and development. One of the first factors is the application of information technology to many business activities, service management, development of diverse distribution channels on e-commerce platforms, and online transactions to support the traditional sales channels. As the leading non-life insurance company in the industry, Bao Viet Insurance has promoted investment in developing technology applications to promptly meet customer needs when thoroughly digitizing insurance processes from consulting, appraising, granting electronic insurance certificates, digital signatures, to online assessment and compensation, which directly shortens the time to pay insurance benefits to customers right from the early days of the pandemic. Facing the current regulations restricting social activities, while understanding the fear of direct contact, companies have applied digital technology throughout the system, aiming for a diverse, comprehensive and friendly digital ecosystem, first for customers; then to bring convenience and efficiency to cooperation partners and sales teams when approaching and consulting customers about insurance services and programs. Notably, with Baoviet Direct’s mobile Claims management application, customer interaction and insurance benefits settlement also become easier.
At the same time, digital transformation also requires safety, reliability and privacy for customers. Baoviet Insurance has launched insurance programs to protect the SME customers from cyber security risks and money transfer and shopping risks; as well as to safeguard the online purchasing and selling activities of individual customers.
The goal of the company is to shorten the process, diversify and offer flexible choices for customers but still prioritize safety overall during the complicated development of the pandemic.
“Customer is the focus” is always the core/accurate business strategy
From a practical perspective, Covid-19 has changed consumers’ minds and perceptions about the importance and meaning of insurance, resulting in a rise in proactive access and participation in insurance services, especially health insurance. According to preliminary statistics of the Insurance Association of Vietnam (IAV), in the first six months of 2021, the health insurance business recorded revenue of VND8,622 billion, accounting for 29.1% and increasing by 6.19% compared with the same period in 2020. However, also according to an analysis of Vietnam Report through a consumer survey, the decline in customer income is a huge challenge as the impact of the pandemic has reduced the average income.
Bao Viet Insurance has pioneered in launching new insurance programs tailored to the needs of customers and the market; such as 37-Critical-Illness Insurance which covers the greatest number of diseases, or “An tam vien phi” which pays for the insurance benefits even if the insured already has health insurance or other health insurance products, no financial invoice needed,… In addition, the company also continuously implements customer appreciation programs such as increasing insurance premiums, increasing insurance duration from now until the end of 2021 with the desire to ease worries and financial burdens in the current difficult economic situation, so that customers can still equip themselves and their families with the protection they need.
Bao Viet Insurance also offers positive contributions in social activities to the community: supporting the Government’s Covid-19 Vaccine Fund; equipping protective gear and equipment for medical facilities, giving necessities to many localities across the country and pandemic epicenters; supporting the Fund for promoting education and well-being;…
Vietnam insurance market 2021: Making great efforts and overcoming difficulties for growth
In general, while at the beginning of 2020, the Covid-19 pandemic surprised the insurance market and it took some time for the market to adapt, in 2021, most businesses have already had plans as the pandemic continues to impact business operations. Many insurance solutions have been deployed such as: expanding the network of member units; investing in information technology, strengthening management; strengthening the cooperation with partners to expand sales channels, improving the quality of compensation assessment, and providing after-sales service to offer customers the best quality insurance products. The results of these efforts can be seen in IVA’s data report on the market in the first six months of 2021, especially for the Top 5 companies that contribute greatly to the overall picture. Other than the 5th position changing as MIC has usurped PIJICO’s throne, the remaining positions are unchanged with the leading position belonging to Bao Viet Insurance, followd by PVI, PTI and Bao Minh.
In forecasting the market at the end of the year, Mr. Ngo Viet Trung, Executive Director of the Insurance Supervisory and Authority under the Ministry of Finance, said that the insurance market still faced many difficulties and challenges. However, with positive efforts from the Government, insurance businesses and people, it was expected that the insurance market in 2021 would still maintain a good growth rate.
Obviously, the long-term business problem is not just about chasing the numbers, but also having a sustainable development strategy, optimally meeting the needs of customers, bringing peace of mind, reliability, and best service, especially while having to overcome difficulties of the current pandemic.