Despite starting quite favourably in the first quarter (Q1) of the year, many life insurers said that the market will face more challenges in Q2.
According to preliminary statistics of life insurance companies, by the end of Q1 2020, the new premium revenue of the entire life insurance market is estimated to grow by 18%. Of which, the growth of agency channel was 16 percent and of bancassurance channel was 24%, etc.
At Aviva Vietnam, the latest announcement sent to the agent team mentioned that the company has exceeded its business goals set in Q1. “The epidemic has caused business team to face many difficulties in meeting customers to give them consultancy, and the support units have also had to find way to overcome obstacles when they could not come to the office as usual. However, with the efforts of all teams, the company’s new premium revenue has exceeded 24 percent of the plan. In March alone, which was a challenging period, Aviva still recorded a total revenue of nearly 100 billion dong, of which, bancassurance channel rose by 102 percent and agency channel rose by 134%,” Aviva’s announcement stated.
Talking to Dau tu Chung khoan newspaper, representative of Hanwha Life Vietnam said that although the Covid-19 epidemic has been complicated and affected all aspects of the economy, the company still ensured stable business operation and ended Q1 2020 with 21 percent increase in new premium revenue compared to the same period of 2019.
Also achieving positive results, generali Vietnam’s representative shared that the company’s new premium revenue increased by 20 percent in the first three months of the year.
Despite a good start, Hanwha Life Vietnam’s leader still expressed caution when assessing the market situation in Q2 2020. According to the leader, the life insurance market is forecasted to continue facing difficulties as the Covid-19 pandemic is still complicated. However, Hanwha Life Vietnam will continue to tightly control all activities, fully comply with all recommendations of the Ministry of Health in the prevention of the epidemic. At the same time, the company will accelerate online business models such as applying insurance claiming tools, illustration software, online fee collection channels, etc. in order to help customers be more convenient when making insurance transactions at home, minimising direct contact or the needs to go to crowded places. In addition, training and recruiting activities will continue be carried out through online model, etc.
More specifically, generali Vietnam’s representative said that the social distancing regulation will have certain impacts on the new premium revenue results of life insurance companies in April 2020. Thus, the business situation in Q2 will be more difficult.
However, the recognition of a favourable start in Q1 also creates a basis for businesses to increase their resistance.
In other developments, after completing the acquisition of Vietcombank Cardif Life insurance company (VCLI), FWD Vietnam has officially announced the exclusive 15-year bancassurance partnership with Vietcombank.
This acquisition will not immediately change the market situation but will create a log of competitive pressure in recruitment, market share expansion, etc. of insurance companies.
It is known that in early April, FWD Group announced that it had received statutory approval for the acquisition of VCLI a joint venture company between Vietcombank and BNP Paribas Cardif.
Previously, in late March 2020, FWD Vietnam raised its charter capital from 3.675 trillion dong to more than 13.937 trillion dong and became the largest life insurance company in Vietnam by charter capital.
