New life insurance premium collections down 32%

By Quynh Trang   June 26, 2024 | 08:58 pm PT
New life insurance premium collections down 32%
A person signs a document. Illustration photo by Pixabay
Premium incomes from new life insurance contracts fell by nearly 32% year-on-year in the first four months of 2024 to VND7.29 trillion (US$286 million).

Three companies accounted for nearly half of these revenues, with Bao Viet leading with an 18% share followed by Dai-ichi and Prudential (15% each), according to the Ministry of Finance.

The majority of the premiums, 70%, came from unit-linked insurance plans (ULIPs), a product that combines protection and investment in securities.

But ULIP premiums fell by 42% as consumers’ trust in them declined after a scam involving banks selling them to many people by claiming they were a kind of bank deposit.

Sellers received VND490 billion worth of commissions on policies (both existing and new) up 8%.

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