Huge profits, but life insurance payouts are meager.

According to the 2022 financial reports of a number of life insurance companies, the claims ratio/total premium revenue showed a significant difference.

Sun Life Vietnam has the lowest claims ratio. The claims and insurance payout ratio is only 30% of total revenue.

Fubon Vietnam leads the market in claims and insurance payout ratio, reaching 71%.

There are significant differences in claims payout ratios among insurance companies.

This company's gross premium revenue was only 130 billion VND, while it had to spend 93 billion VND on compensation and insurance claims for customers.

Following Fubon Vietnam in terms of claims ratio are: Cathay Life (64%), AIA (61%), Hanwha Life (58%), Manulife (57%), BIDV Metlife (56%), Prudential (56%), Chubb Life (55%), Dai-ichi Life (47%), Generali (36%), and Sun Life (30%).

In terms of gross premium revenue, Prudential Vietnam leads with VND 31,179 billion. Manulife Vietnam ranks second with VND 26,803 billion. Following them are Dai-ichi Life with VND 21,800 billion and AIA with VND 18,600 billion.

Meanwhile, Sun Life and Generali only achieved just over 5,000 billion VND.

As VietNamNet previously reported, financial revenue (interest on bank deposits, dividends, interest on bonds, etc.) accounts for a large proportion of the revenue structure of insurance companies.

Claims ratios of insurance companies in 2022. Chart by Vietnamnet.

Manulife and Prudential were the two leading companies in terms of financial revenue in 2022, reaching VND 4,820 billion and VND 4,025 billion respectively.

AIA, Dai-ichi Life, and Cathay Life also joined the trillion-VND financial revenue club. Specifically, AIA and Dai-ichi Life achieved 2,480 billion VND, and Cathay Life achieved 1,500 billion VND.

Bao Viet Life Insurance and MB Ageas Life have not yet released their financial reports.

The market currently has 19 companies operating in the life insurance sector.

According to the General Statistics Office, premium revenue in the life insurance sector is estimated at VND 39,588 billion in the first quarter, a slight increase of 3.1% compared to the same period last year. This increase is considered the lowest in many years, amidst a crisis of confidence in the insurance market.

Given the chaotic state of the insurance market, the Ministry of Finance has established a 24/7 hotline to receive and process information and complaints regarding insurance.

Gross premium revenue of insurance companies. Chart by Vietnamnet

By the end of March, the agency had received 175 suggestions and complaints via telephone and 218 suggestions and complaints via email.

On April 10th, the Insurance Supervision and Management Department issued a document requesting increased inspection and supervision of the implementation of insurance agency contracts, and assessment of the quality of advice, introduction, and sales of insurance products by insurance agents.

At the same time, life insurance companies must seriously address the responsibility of insurance agents in cases of violations of legal regulations in carrying out activities authorized by the insurance company.

Tuan Nguyen