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Inside a transaction workplace of Bảo Việt Holdings. Picture baoviet.com.vn
HÀ NỘI — Accelerating the digital transformation course of not solely helps insurance coverage companies rework throughout the COVID-19 pandemic but in addition is taken into account the muse for progress within the financial restoration.
With the present push in digital transformation, consultants from SSI Securities Company consider that E-insurance certificates will step by step be legalised for different insurance coverage merchandise, similar to medical health insurance and property harm insurance coverage. Due to this fact, gross sales via on-line channels may also step by step develop.
Moreover being a key driver of the restoration in demand, premium income progress might come from partnering with fintech firms to spice up innovation in information evaluation, serving to insurance coverage firms diversify merchandise and distribution channels sooner or later.
Beforehand, premium income progress was hit laborious by strict social distancing orders.
Information from SSI present that within the third quarter of 2021, gross written premium (GWP) and new enterprise premium (NBP) of life insurance coverage recorded the bottom progress fee ever, up 8.5 per cent year-on-year and unfavorable 10.5 per cent, respectively.
Non-life insurance coverage premium income decreased by 12 per cent in comparison with the identical interval of 2020.
Some phases within the life insurance coverage gross sales course of similar to well being checks and consumers’ direct signatures have been interrupted throughout social distancing, affecting revenues of life insurance coverage companies.
For non-life insurance coverage, the demand for auto insurance coverage, private accident insurance coverage and journey insurance coverage, which usually contribute about 50 per cent of whole premium income, was low throughout the interval.
Based on consultants from SSI, the usage of a standard database on obligatory insurance coverage of civil legal responsibility of motorized vehicle house owners with motorized vehicle registration info, street visitors security violations, and visitors accident histories can assist insurance coverage firms higher classify clients.
In the meantime, Decree 3 additionally permits insurance coverage firms to extend premiums by as much as 15 per cent in comparison with the extent set by the Ministry of Finance, primarily based on the accident historical past of every motorized vehicle and its threat tolerance capability. That is doubtless to assist insurers enhance premiums on higher-risk contracts as a substitute of making use of the identical worth to all contracts as earlier than.
Modifications in laws on digital certificates, if any, may also have a optimistic impression on the net gross sales channel, with revenues rising whereas the middleman prices for brokers and brokers might step by step decline.
Beforehand, insurers acquired optimistic alerts from the information of State divestment and the rise of the overseas possession ratio in insurance coverage firms to a most stage final August.
Accordingly, on the nationwide funding portal, the Ministry of Planning and Funding has formally up to date market entry circumstances for overseas buyers, which clearly states the overseas proprietor restrict (FOL) for the insurance coverage business is 100 per cent.
The transfer has eliminated difficulties for a lot of insurance coverage firms similar to Bảo Minh Insurance coverage Company, Publish and Telecommunication Joint Inventory Insurance coverage Company, and Petrolimex Insurance coverage Company, which raised their overseas possession charges in recent times.
Some firms then reported to the State Securities Fee of Việt Nam (SSC) the rise of FOL to 100 per cent like PTI, or 49 per cent like Bảo Việt Holdings.
KIS Việt Nam Securities Company mentioned that the final insurance coverage market was dominated by State-owned firms. Due to this fact, the change in possession construction and the penetration of overseas buyers make the market’s outlook extra promising.
Nonetheless, the securities agency warned that the low-interest-rate setting continued to be a problem for the expansion of companies within the insurance coverage market. — VNS
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