According to data of the Insurance Association of Vietnam (IAV), in the first 6 months of 2023, the total insurance premium revenue of the whole market was estimated at VND 112,740 billion, down 5% compared to the same period in 2022.
Notably, in the life insurance sector, the number of new contracts in the first 6 months of 2023 reached more than 1 million, down 31.3% compared to the same period last year.
In particular, the two products that accounted for the largest proportion both saw a sharp decrease. Specifically, premium of investment-linked insurance products accounting for 61.2% decreased by 34.4% compared to the same period last year while term insurance products accounting for 30.7% recorded a 17.6% decrease compared to the same period last year.
This is the first time the number of life insurance policies of the whole market has decreased since 2014. Accordingly, the cause is believed to be partly influenced by the crisis of confidence after many incidents occurred in the market.
In addition, the process of inspection of insurance units in the industry by regulatory agencies also hinders the growth of this market size.
Besides, by the end of June 2023, the revenue of the non-life insurance market was estimated at VND 34,910 billion, an increase of 1.3%; the original insurance claim was estimated at nearly VND 11,250 billion, the claim ratio was 32.2%.
Health insurance had revenue of VND 10,946 billion, accounting for the highest proportion of 31.4%, down 1.7% over the same period; compensation was VND 3,790 billion, equal to a compensation rate of 34.6%.
Property damage insurance revenue reached VND 10,120 billion, accounting for 29%, up 10.9% over the same period; compensation was VND 1,510 billion, equal to a compensation rate of 14.9%. Motor vehicle insurance and voluntary motor vehicle insurance recorded revenue of VND 8,820 billion and VND 6,622 billion, down 5.8% and 5.5 over the same period, respectively.
Other non-physical insurance activities have maintained revenue below VND 2,500 billion and recorded mixed fluctuations in the range of 10%-20%.
In general, the total insurance premium revenue of the whole market in the first 6 months of the year was estimated at VND 77,830 billion, down 7.9% compared to the same period in 2022. In particular, the total insurance premium revenue from new contracts was estimated at VND 15,500 billion, down 38.2% over the same period last year.
Leading in terms of new insurance premiums are Prudential with VND 2,740 billion and Dai-ichi Life with VND 2,050 billion. After many years of leading, Manulife fell to the third place with VND 1,980 billion in premium revenue after the incident at SCB at the end of October last year causing a series of Manulife insurance customers to demand refunds from the business. Bao Viet Life with VND 1,910 billion and Sun Life with VND 1,180 billion ranked 4th and 5th respectively in the list.
In terms of premium revenue and market share, Bao Viet Life is leading with 20.6% market share, followed by Manulife (17.2%), Prudential (16.5%), Dai-ichi Life (12.5%), AIA (10%), FWD (3.4%), Sun Life (3%), MB Ageas (3%), Generali (2.7%), Chubb Life (2.7%). , Hanwha Life (2.5%), Cathay Life (1.8%), MVI (1.46%), BIDV Metlife (1%).
Compiled by VietnamCredit