Life insurance market overview: 9 months of 2012

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  • Sep 23, 2014

Vietnam socio-economy continues to face many difficulties and challenges in the first 9 months of 2012. The world economy is quite due to debt crisis in some European countries. Sluggish investment activity with exports declined in most of the economy leading to reduced growth. In land, the consumer goods market shrinking leading to high inventory. In the first nine months, Gross domestic product (GDP) is estimated to increase by 4.73% compared to the same period last year, lower than the 5.77% increase in the first nine months of 2011.

Social capital investment in nine months of 2012 at current prices is estimated at VND 708.6 trillion, up to 8.6% over the same period last year and accounting for 35.8% of GDP. Foreign direct investment from the beginning of the year to date 09/20/2012 is 9526.4 million, accounting for 72.1% that of the same period last year, export turnovers reached VND 83.8 billion, up 18.9% compared to the same period last year, turnover of imports reached USD 83.7 billion, increased 6.6% compared with the same period in 2011.

CPI in September increased 2.2% compared to last month. CPI rose mainly due to the effects of the drugs and medical services and education groups, in which the drugs and medical services increased by 17.02% (medical services increased by 23.87%); education group increased 10.54% (education services increased 12.16%).

In the first 9 months of 2012, total new policies reached 695,953 policies (main product), increased 11% against the same period last year. The following is the structure of new policies in products: 39.1% of endowment, 36.3% of term insurance; 24.2% investment insurance; and 0.39% of whole life and annuity. Total reinstated policies (main product) were 74,702 policies, up 17%. The products with highest number of reinstated policies were term insurance (35,002 policies) and endowment (34,945 policies). Total terminated policies were 606,926 policies, up 13%. Total policies in force at the end of the term were 4,641,518 policies, which rose 6% against the same period of 2011.

Total liability level was VND 543,000 billion, increased 25%, in which, liability level of main products was VND 396,000 billion, increased 23% and that of riders was VND 146,000 billion, increased 29%. Investment products offered the highest liability level at VND 205,000 billion.

First year periodical premium in the first 9 months of 2012 was VND 3,573 billion, increased 13%. Single paid premium was VND 50 billion, increased 42.8%. Total new business premium was VND 3,623 billion, up 14%. Total premium of the market was VND 12,914 billion, up 13.4%. The products which contributed the most of collected premium were endowment at 67.5% (VND 8,721 billion), investment insurance at 23.3% (VND 3,007 billion) and riders at 6.1% (VND 793 billion).

Total benefit payments in the first 9 months of 2012 was VND 6,126 billion. Total insurance payment was VND 4,034 billion. Total payment of cash value was VND 1,449 billion.

Until the end of September 2012, total number of agents in the market was 224,438 agents, up 15%. The number of newly-recruited agents in the first 9 months of 2012 was 109,214 agents, up 7.7%.

(Source: AVI Report)

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