Despite the provision for the situation in Q2/2020 (including major retail operations such as motor insurance and human insurance), it was difficult to bounce back strongly because, in April 2020, new fee revenue almost frozen due to social spacing regulations. However, the market had quite unexpected developments that no insurance enterprise anticipated.
There were no official statistics yet, but just a few days after the official regulations on national vehicle inspections, the revenue of compulsory insurance for vehicle owners’ civil accidents of most non-life insurance companies recorded growth rates of over 30%, even up to 100%.
According to preliminary estimates of insurance enterprises, after this census, motor vehicle insurance revenue would reach several hundred billion dong. The revenue from this product would immediately offset the new gap to insurers as a result of the Covid-19 epidemic. In the long run, after this inspection, motor vehicle insurance, both mandatory and voluntary, would be able to be perceived more appropriately.
An insurance business representative said, when awareness changed, the need to buy insurance would occur regularly. This was the stable source of revenue that insurers expected from this test. Although compulsory civil liability insurance for motorbike owners was in a trend and only a few days had reached the dreaming sales. In fact, the proportion of revenue for this insurance product accounted for less than 10 percent of the total revenue of motor vehicle operation.
According to insurance companies, in motor insurance, automobile insurance revenue was the main source of revenue. However, for compulsory insurance of civil liability of motor vehicle owners, almost 100 percent of car owners bought when participating in traffic because without which, drivers would not be able to do the inter-related procedures regarding vehicles as tested.
Therefore, in order to increase motor vehicle insurance revenue, insurance companies still had to work hard to find ways to exploit other types of vehicle insurance, including material insurance for the whole vehicle or some spare parts; insurance of vehicle owners’ civil liability for goods on vehicles (goods transport business vehicles) or driver accident insurance, assistant vehicles and passengers (vehicles not for passenger transport business), and so on.
Of course, along with the occasional factor such as the nationwide traffic test, to boost this business revenue, non-life insurance companies would also have to come up with other solutions such as increasing cost ratio for operators.
Along with the exciting car insurance thanks to traffic inspection regulations, the human health insurance business was also flourishing after a series of days of real estate war due to disease.
People’s insurance was being promoted through many sales channels, including bancassurance and in conjunction with financial companies. Particularly in Post and Telecommunication Joint Stock Insurance Corporation, revenue from this business was growing about 20 percent over the same period last year, mainly activities purchased by businesses for staff members.
In the current economic context, when traditional insurance services such as property, maritime, construction, had not yet prospered, motor vehicle insurance and human insurance, especially health insurance would still be the critical businesses of life insurance companies, said an insurance business representative.
