Illustrative image (Photo: BIDV Insurance Corporation) According to the business report for the first six months of 2023 of BIDVInsurance Corporation (BIC), insurance premium revenue reached 2.36 trillionVND, up 24.6% over the same period last year. Total pre-tax profit reached 262billion VND, up 61.0% over the same period last year.
Bao Viet Insurance Grouprecorded positive growth with total consolidated revenue of 28.35 trillion VND,up 6.3% over the same period in 2022. Consolidated profit after tax reached 973billion VND, up 15.7% over the same period in 2022.
For Bao Viet Fund ManagementCompany (BVF), fund management and securities business continued to grow wellwith total net assets under management reaching nearly 117 trillion VND, up 7.3%compared to the previous year. Total revenue reached 78 billion VND, up 25%over the same period in 2022, profit after tax reached 37 billion VND.
Trust portfolios andinvestment funds all grew positively. Among the open-ended fund market, Bao VietDynamic Stock Investment Fund (BVFED) was among the top three open-ended equityfunds in terms of performance with a growth rate of 17% as of June 30, 2023,higher than that of VN30 reference index of 5.2%.
According to the Insurance Association of Vietnam (IAV), in the first fivemonths of 2023 alone, total insurance premium revenue was estimated at 93.2trillion VND, down nearly 1.5% compared to the same period last year. Butthanks to the insurance premiums accumulated in the past, plus the investmentprofits over time, the total investment value returned to the economy of theinsurance businesses achieved positive results.
Currently, insurance companies in Vietnam own a business model based on twomain sources of profit, net profit from insurance business and financial profitfrom investments.
While people tighteningspending has led to a decrease in demand for new insurance, financial profitsfrom investments in securities, savings deposits, and investment trusts arerecording growth.
According to the management ofBao Viet Insurance, this firm maintains a positive view on investment incomegrowth in the second half of 2023 as most of its current investments are stillenjoying higher yields compared with the same period last year.
The enterprise is consideringrestructuring its investment portfolio to switch to corporate bonds issued bycommercial banks to maximise profits.
As for Military InsuranceCompany, for financial investment activities, bonds currently account for about10% of the company's total profitable assets, including a part of manufacturingenterprises and financial companies.
According to the leader ofthis business, these bond issuers all pay interest on time and have collateralassets three times higher than the bond value.
According to the Board ofDirectors of Bao Viet Insurance, the business does not apply the strategy of reducingpremiums in the context of high competition in the non-life insurance industryto maintain profit margins.
Enterprises will strengthenrelationships with long-term partners to improve sales and after-salesservices, at the same time, changing the customer's mindset to reduce risks, aswell as improving the knowledge of employees to reduce the risks relating tolawsuits.
Deputy General Secretary ofthe Vietnam Insurance Association Ngo Trung Dung said that during the FourthIndustrial Revolution, technology was present in all areas of the insurancevalue chain, including market research, understanding customer needs, productdesign, product sales, and insurance policy management.
A survey by the Vietnam Assessment Report Company shows that insurancetechnology (Insurtech) is developing strongly and applied in all stages of thecurrent insurance industry value chain. The Insurtech market in Vietnam isexpected to soon reach tens of billions of US dollars andgrow by nearly 50% per year, according to Google and Bain reports in 2022.
The promotion of technologyapplication helps customers to understand information transparently, simplifyapplication procedures, and personalise insurance products according to theactual needs of each customer. /.
VNA
