Insurance businesses are ‘immune’ to Covid-19

3 min read

In May, when the fourth wave of Covid-19 broke out in Vietnam, Nguyen Tinh – a consultant at an insurance company on Duy Tan Street, Cau Giay, Hanoi moved to work from home. Due to the nature of the job, this change does not affect the work results of the 28-year-old girl. “Even signing a contract is even more convenient when people tend to be more concerned about their health as well as their loved ones,” Tinh said.

Nguyen Tinh is one of nearly one million workers with stable income in Vietnam’s insurance market. In the context of Covid-19 still complicated, insurance consultants with positive business results are not in the minority.

In fact, the insurance market picture still flourished during the raging epidemic. Specifically, according to data from the insurance regulator, in 2020, the market maintained a growth momentum of 15% compared to 2019, total premium revenue reached VND 184,662 billion, according to data from the regulator.

Insurance company employees advise customers during the period of social distancing. Photo: Sun Life.

Last year, insurance businesses handled well the benefits for customers, paying insurance benefits reached 48,223 billion VND (up 11.4% over the same period in 2019). Enterprises in the industry also actively contributed to the socio-economic development when re-investing in the economy was estimated at VND 460,457 billion (up 22% over the same period in 2019).

Following the growth momentum in 2020, insurance businesses started the first quarter of this year quite smoothly. Total insurance premium revenue of the non-life sector is estimated at more than VND 14,884 billion, up 6% over the same period in 2020, according to the Vietnam Insurance Association.

In the first months of 2021, health care insurance grew by 87%, motor vehicle insurance increased by 7%, property insurance, losses and freight insurance grew by 16% and 15%, hull insurance and ship owner civil liability grew by 7% , aviation insurance grew by 37%, fire and explosion insurance grew by 11%.

Growth rate of insurance types. Source: Vietnam Insurance Association. Source: Vietnam Insurance Association.

Many enterprises in the industry announced positive business results, despite the world financial crisis or adverse impacts from the epidemic. For example, Bao Viet Group ended the first three months of the year with total consolidated revenue of VND 11,959 billion, up 8%. Consolidated profit after tax reached VND 499 billion, nearly 4 times higher than the same period in 2020.

Total revenue of PVI Insurance also reached VND 2,893.7 billion, completing 112.7% of the first quarter plan, up 11.1% over the same period in 2020. With this result, the revenue target of VND 10,000 billion The contract in 2021 is expected to be completed ahead of schedule by PVI Insurance’s management.

Bao Minh Insurance also ended the first quarter with bright spots in the financial picture. Total revenue reached 1,283 billion VND, increased by 5.39% over the same period last year and reached 25.53% of the plan approved by the general meeting of shareholders – 0.53% higher than the average plan progress. Pre-tax profit reached VND 87.6 billion, up 71.4% over the same period and reaching 31.62% of the plan approved by the general meeting of shareholders.

Experts said that if in early 2020, Covid-19 has caused the insurance market to take a long time to adapt, then in 2021, most businesses have a plan to adapt to the impact of the epidemic on business activities. The re-outbreak of Covid-19 has a great impact on insurers but has been in the predictions of insurers.

According to data from the Ministry of Finance, Vietnam’s insurance market currently has 72 insurance companies operating in the fields of life insurance, non-life insurance, insurance brokerage, reinsurance and 1 business branch. foreign non-life insurance industry.

Source: ndh.vn – Translated by fintel.vn