An increasingly fierce race takes place in non-life insurance market

Transportation News
06:11' CH - Friday, 04/08/2017

A fierce race is taking place in the non-life insurance market.

PVI Insurance recorded total revenue of over VND4.3 trillion in the first half of 2017

The Insurance Supervisory Authority, Ministry of Finance, said that in the first six months of this year, the non-life insurance market achieved an impressive growth rate, with the estimated total revenue of VND19,340 billion. Reports on revenue from insurers also showed numerous impressive results. PVI Insurance is a typical example. With the efforts to innovate incessantly, this company has outperformed the set targets in the first 6 months. Specifically, with total revenue of VND4,308 billion, PVI Insurance fulfilled 112.8% of the semi-annual plan and 52.5% of the annual plan.

In the first six months of the year, PVI Insurance also opened three new subsidiaries, namely PVI Cuu Long, PVI Quang Nam and PVI Quang Binh, increasing the total number of subsidiaries to 33. PVI Insurance also continues to standardize its customer care process nationwide, speed up claims settlement, well perform direct billing and health insurance payment operations as well as strictly control claim management in motor vehicle insurance, etc.

Meanwhile, Bao Viet Insurance Corporation reported an increase of 22.3% in total revenue in the first half of this year; income from financial activities achieved 71% of the yearly plan, up 15.3%. The representative of Bao Minh Insurance Corporation said that this Corporation recorded total revenue of VND1,837 billion, up 14.1% over the same period last year.

Statistics show that in the non-life insurance market, motor vehicle insurance continues to make the greatest contribution to the market’s total revenue with 34%, followed by health insurance with 27%, property insurance and casualty insurance with 14%, fire and explosion insurance with 9% and other lines of insurance. According to experts, there is a slight change in the revenue structure as compared to previous years. As such, revenue increased only thanks to underwriting new businesses in old segments or competing with competitors for the market share. Obviously, the race in the non-life insurance market will become increasingly fiercer. If desiring to expand their market shares, insurance companies are forced to constantly innovate, upgrade products or introduce new products that match practical needs of people.

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