High value life insurance

VietNamNet Bridge – Despite the big difficulties in the economic downturn, life insurance companies still had a prosperous year 2010.   Mark Tucker, President and Managing Director of AIA Group, announced on March 16; that the total insurance premiums for the company in 2010, increased by 23 percent; in comparison with 2009, where it reached 961 billion dong. The company’s pre-tax profit increased by 35 percent, reaching 139 billion dong, while the stockholder equity has increased by 24 percent to 920 billion dong. The president keeps optimistic about Vietnam’s life insurance, saying “to date, only five percent of population has taken insurance policies, while the Vietnamese population is young; which means that there is still much “room” for life insurers to exploit the market. Director of a 100 percent foreign owned life insurance companies also said that with the current population and the economic growth rate, Vietnam … [Read more...] about Life insurers swimming against the current

VietNamNet Bridge - Vietnam’s life insurance market has seen rapid growth despite high inflation. High inflation has forced many people to slash their spending, but the economic doldrums seem to have offered growth opportunities for the life insurance business. “Inflation has not affected the life insurance market, because its customers are often people of the middle-income group and upwards,” said Phung Dac Loc, general secretary of the Association of Vietnamese Insurers. “They do not have to cut their spending on services to have more money for eating, since food does not make up much of their total expenditure.” Although inflation is up 9.64 percent from the end of 2010, the life insurance market has seen rapid growth. According to the Ministry of Finance, the local life insurance sector posted a 16.2 percent increase in premiums to nearly VND1.95 trillion (US$97.5 million) in the first two months of this year. Loc said high inflation could … [Read more...] about Life insurers not fazed by inflation

VietNamNet Bridge – The high inflation rate has forced people to tighten their belt and spend less money on insurance policies. This explains the modest business result of life insurers in the first six months of year: though the premiums from new insurance policies increased by 30 percent, and the number of new policies increased by six percent only. “It is understandable why the growth rate in the number of insurance policies has decreased. However, the worrying thing is that the problem would continue in the last months of the year, if the high inflation cannot be controlled,” said Phung Dac Loc, Secretary General of the Vietnam Insurance Association. Analysts have pointed out that if the high inflation lasts for a long time, the number of clients canceling insurance policies before the due time would keep rising. According to the Vietnam Insurance Association, the total returned value of the canceled insurance policies reached 1151 billion dong in the first … [Read more...] about High inflation rate makes life insurers dispirited