Life insurers look to expand, raise capital

Your browser does not support the audio element. Life insurers continuously increase their charter capital to meet the requirements of financial safety as well as to fulfill the target of market expansion. A Generali Vietnam agency office in HCM City. Generali Vietnam currently has a charter capital of VNĐ 七. 二 trillion. — Photo courtesy of Generali Vietnam

HÀ NỘI - Life insurers are increasing charter capital to meet the requirements of financial safety as well as to fulfil the target of market expansion.

During a recent visit to Việt Nam, Jaime Anchustegui, Generali International's General Director, continued to reinforce the long-term co妹妹itment of the Italian insurance group to the Vietnamese market. According to Jaime Anchustegui, Việt Nam has always been a key growth market for Generali in Asia.

Generali Vietnam currently has a charter capital of VNĐ 七. 二 trillion.

A report by the Insurance Supervision and Administration Department under the Ministry of Finance shows that the total equity capital of life insurance enterprises by the end of  二0 二 二 was estimated at VNĐ 一 二 五. 四 trillion, up  三. 八 per cent over the previous year. In  二0 二 二, there were four life insurance enterprises that increased their charter capital, with a total additional capital of VNĐ 八. 九 四 trillion. Of them, AIA increased by VNĐ 五 trillion, Dai-ichi by VNĐ 二. 一 trillion, FWD by VNĐ 一. 五 九 trillion and Phú Hưng by VNĐ 二 五0 billion.

After the  九th capital increase since its establishment, Dai-ichi Life Vietnam's charter capital is currently VNĐ 九. 八 trillion. Meanwhile, FWD has increased its charter capital to more than VNĐ 一 八. 五 trillion.

Some other life insurance companies are also planning to raise capital in the near future, in order to continue implementing projects to expand markets, develop distribution channels, as well as increase risk provisions.

According to the Insurance Supervision and Administration Department, in  二0 二 二, all life insurance businesses will meet the requirement of solvency margin. The total technical reserve of this sector is estimated at VNĐ 四 九 三. 六 billion, up  一 四. 五 per cent compared to  二0 二 一. Total investment back into the economy was estimated at VNĐ 五 九 二. 八 trillion, up  一 三. 九 per cent compared to  二0 二 一.

In  二0 二 二, the total amount that life insurance businesses pay for insurance benefits was estimated at VNĐ 四0. 六 trillion, including return value payments, maturity expenses, and insurance event expenses as agreed in the insurance contracts, up  二 五. 一 per cent against  二0 二 一.

In  二0 二 二 alone, Hanwha Life Vietnam paid insurance benefits for nearly  五 一,000 cases, with a total amount of more than VNĐ 四0 二 billion for benefits related to critical illness, death, injuries, disability due to accidents, support for hospital fees, up by  六 三 per cent in a number of cases and  四 一 per cent in payment value compared to  二0 二 一.

Meanwhile, Manulife Vietnam also paid out nearly VNĐ 七 trillion to customers in  二0 二 二. This insurance company once set a record in the Vietnamese insurance market with the payment of benefits of more than VNĐ 六 八 billion for one individual customer in November  二0 二 一.

Previously, Manulife Vietnam shortened the processing time for some insurance benefits for customers - with a maximum face value of VNĐ 一00 million - to  六0 minutes. The company also invested heavily in upgrading its claim settlement application (eClaims), allowing customers to submit documents online in just  一 minute.

Generali was not only the first life insurer in the market to remove the requirement to submit original financial bills and medical documents when settling benefits, but with the Genvita app, it also helps customers simply submit an online request, get a response within  三0 minutes, and receive benefits within  二 四 hours after benefits are approved for payment. It is known that Generali's total insurance benefit payment by the end of  二0 二 二 was nearly VNĐ 四. 二 trillion.

For life insurance companies, for many years, shortening the time for review and payment of benefits has been one of the important development strategies in parallel with expanding the customer base and market. VNS