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 Viet Nam, Jaime Anchustegui, Generali International's General Director, continued to reinforce the long-term commitment of the Italian insurance group to the Vietnamese market. According to Jaime Anchustegui, Viet Nam has always been a key growth market for Generali in Asia.
Generali Vietnam currently has a charter capital of VND7.2 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 2022 was estimated at VND125.4 trillion, up 3.8 per cent over the previous year. In 2022, there were four life insurance enterprises that increased their charter capital, with a total additional capital of VND8.94 trillion. Of them, AIA increased by VND5 trillion, Dai-ichi by VND2.1 trillion, FWD by VND1.59 trillion and Phu Hung by VND250 billion.
After the 9th capital increase since its establishment, Dai-ichi Life Vietnam's charter capital is currently VND9.8 trillion. Meanwhile, FWD has increased its charter capital to more than VND18.5 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 2022, all life insurance businesses will meet the requirement of solvency margin. The total technical reserve of this sector is estimated at VND493.6 billion, up 14.5 per cent compared to 2021. Total investment back into the economy was estimated at VND592.8 trillion, up 13.9 per cent compared to 2021.
In 2022, the total amount that life insurance businesses pay for insurance benefits was estimated at VND40.6 trillion, including return value payments, maturity expenses, and insurance event expenses as agreed in the insurance contracts, up 25.1 per cent against 2021.
In 2022 alone, Hanwha Life Vietnam paid insurance benefits for nearly 51,000 cases, with a total amount of more than VND402 billion for benefits related to critical illness, death, injuries, disability due to accidents, support for hospital fees, up by 63 per cent in a number of cases and 41 per cent in payment value compared to 2021.
Meanwhile, Manulife Vietnam also paid out nearly VND7 trillion to customers in 2022. This insurance company once set a record in the Vietnamese insurance market with the payment of benefits of more than VND68 billion for one individual customer in November 2021.
Previously, Manulife Vietnam shortened the processing time for some insurance benefits for customers - with a maximum face value of VND100 million - to 60 minutes. The company also invested heavily in upgrading its claim settlement application (eClaims), allowing customers to submit documents online in just 1 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 30 minutes, and receive benefits within 24 hours after benefits are approved for payment. It is known that Generali's total insurance benefit payment by the end of 2022 was nearly VND4.2 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