The insurance sector expects the return purchasing power at the end of the year

22-Sep-2020 Intellasia | Dau tu Chung khoan | 6:02 AM Print This Post

Premium revenue of some non-life insurance lines started to grow again after the first months of the year thanks to the stimulus policies of non-life businesses.

Basically, the leading enterprises in the market share still maintained their performance, of which Petrolimex Insurance Corporation (PJICO) stood out with a growth rate of 24.8 percent in the first six months of the year.

According to estimates of the Vietnam Insurance Association, at the end of the first six months of 2020, the non-life insurance market’s revenue was estimated at 26.991 trillion dong, growing by about seven percent. In which the insurance revenue growths of the top companies were Post Telecommunication Joint Stock Insurance Corporation (PTI) with seven percent, PVI Insurance Corporation (PVI) increased by two percent, Bao Minh Insurance Corporation (BMI) increased by 20%, PJICO increased by 24.8%.

In the first six months of the year, the human health insurance business maintained the best growth rate, reaching more than 35 percent over the same period in 2019. One of the factors that helped the revenue of this business grow highly was that people were afraid of the epidemic.

Many insurance companies had launched support policies to stimulate the demand for insurance of businesses such as fee payment split, 24/7 compensation switchboard, salinisation of the claim filing process, etc.

With motor vehicle insurance, the sharp decline in the number of cars sold in the first months of the year caused the motor vehicle insurance growth of the whole market to increase by only four percent in the past six months, reaching 8.236 trillion dong.

The positive factor supporting this profession in the near future was the fact that the Ministry of Finance submitted to the government to consider and allow insurance enterprises to issue electronic insurance certificates instead of the form of hard copy insurance certificates, as well as the car sales in the last months of the year were expected to increase.

Although the risks of the disease, as well as the slow growth rate from the economy, was still threatening the growth of the technical property insurance business, since Q2/2020, this profession had also started to recover when some orders were re-signed.

Cargo insurance was also expected to change as new generation trade agreements had gone into effect, and export orders increased.

Although the growth was unlikely to be equal to the same period last year, businesses still expected purchasing power to return in the last quarter of the year.

Like other insurance companies in the market, the disease situation in the first months of the year had affected and changed much of PJICO’s plans.

However, thanks to early grasping and the right decisions as soon as the epidemic occurred, PJICO quickly turned the tide and became the insurance company with the highest growth rate in the non-life sector.

It was known that the original insurance revenue in the first six months of 2020 of this insurance company reached 1.776 trillion dong equal to 61.2 percent of the company’s year plan, increased by 24.8 percent over the same period in 2019, and more than three times higher than the growth rate of the market.

This was also the highest six-month growth rate of PJICO in the past 15 years. Profit before tax reached 134.8 billion dong, equivalent to 74 percent of the profit plan completing in 2020.

To achieve this result, during and after the Covid-19 epidemic, PJICO had issued a series of programmes to promote sales, promptly rescue for difficult operations such as motor vehicle insurance.

This insurance company expected original insurance revenue in 2020 (excluding fishing vessel insurance revenue under Decree No.67/ ND-CP) to grow at least by 10 percent compared to 2019 and strive for a pre-tax profit of about 200 billion dong.

It was known that on September 15, PJICO was officially honored to be ranked the fourth in the Top 10 prestigious non-life insurance companies in 2020, announced by the Vietnam Report.

This was the fifth consecutive year that PJICO had been in this list and always at the top of the highest-ranked non-life insurance companies with stable revenue and profit growth.


Category: Finance, Vietnam

Print This Post