Life insurance’s exploitation in Q3 likely to be less positive than Q2

24-Jul-2021 Intellasia | Dau tu Chung khoan | 5:02 AM Print This Post

Incomplete statistics of life insurance businesses showed that in the first six months (H1) of 2021, the total newly exploited premium revenue of this group reached about 22 trillion dong, in which the revenue from agency channel still accounted for the largest proportion with over 13 trillion dong, followed by bancassurance channel with over 7.8 trillion dong

Manulife continued to lead the market in the revenue of newly exploited premium in H1/2021 with nearly five trillion dong. For Dai-ichi Life, the strong growth of the bancassurance channel brought nearly three trillion dong to this insurer, replacing the second position of Prudential in the group of foreign-invested life insurers in terms of the newly exploited premium revenue.

In the lower group, the market recorded a breakthrough of FWD and Sun Life when new bancassurance cooperation channels began to promote exploitation, helping generate over a trillion dong of new premium revenue in H1/2021 to each insurer.

The products that have been and are being promoted by life insurance businesses are health insurance and unit linked insurance with new premium revenue as of May 2021 increasing by respectively 1,000 percent and 300 percent over the same period of last year (official numbers as of Jun/2021 are not yet released).

Leader of an insurance company said that the data in the first two quarters of 2021 still showed an increase in the new premium revenue in most life insurers, but compared to the growth rate in March the last month of the first quarter (Q1), the growth in the last month of Q2 was insignificant. It is a worrying change because agents often compete fiercely in the last month of each quarter because it is the time to reward high sales. In some insurance companies in the leading group such as Prudential, Manulife, Dai-ichi Life or AIA, the revenue in the last month of Q2/2021 even declined compared to the last month of Q1/2021.

“In the context when the Covid-19 developments are stressful, the insurance exploitation in Q3/2021 of life insurance is forecast to be less positive than Q2. In the case when the epidemic is controlled in the last months of Q3 this year, the revenue growth of this quarter can hardly soar due to the lower purchasing power as customers are affected by the epidemic,” said a general director of an insurance company in the leading group.

However, not all insurance companies have a pessimistic view. Many insurers said that if the epidemic is soon controlled, the market is likely to be more positive in the last quarter of the year, businesses will continue to focus on improving technology and launch many attractive sales programmes to bring customers back.

In fact, the past six months, along with the efforts to boost sales, life insurers have paid attention on investing in completing their technology ecosystem to enhance customer experience. For example, generali has digitised most insurance transactions such as sending claims for insurance benefits, monitoring contract status, paying premiums, updating information, swapping investment funds, buying products, etc. via GenVita the pioneering healthcare digital ecosystem in the market. Other insurance companies such as Manulife, Chubb Life, Prudential, etc. have also simplified the process of settling insurance benefits so that customers can stay at home to submit claims and receive insurance money online, etc.

A survey by Vietnam Report showed that compared to a year ago, the impact of the epidemic on business decision-making in a number of areas has changed, of which over 50 percent of insurance companies have step by step changed their decisions related to digital transformation, management and customer access, product research and development, compensation assessment, etc.

 

Category: Finance, Vietnam

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