‘New player’ Generali: The advantage of the late joiner
Thanh Nien Newspaper – 11:00 AM – 21/04/2016
The life insurance market in Vietnam saw dramatical growth in 2015, with total premium income of 36,650 billion dong, increasing 29.5% over 2014. New business premium income achieved 12,492 billion dong, 39.5% up. These are the highest growth in the market in the past 5 years. It looks like the growth trend will remain in 2016 and life insurers are very ambitious in expanding markets and developing new products to further tap on the protection and saving needs of the people.
“New player” but determined
The ranking of the leading group in terms of premium income in 2015 is basically unchanged. The leading positions are occupied by big names like Prudential, Bao Viet Life, Manulife,… However, according to experts, the growth of the market is to some extents attributable to the “new player” such as Generali, PVI Sunlife, VietinBank Aviva,… the determination of these new players for getting their market standing has made big players look at themselves more properly.
Generali is determined to become the brand of choice in Vietnam
Generali Vietnam – the player joining the market for not so long time – is a typical case. In 2015, its total premium income was 768 billion VND, increasing three-fold over 2014. One of its break-through is to launch several products at the same time such as Critical Illness Endowment, Universal Life, Juvenile Wholelife Endowment offering superior interest rates and comprehensive, competitive benefits. In addition, Generali pursues the strategy to have professional agents targeting middle and high income customers. The result is that Generali obtains the highest average case size and becomes one of the fastest growing companies.
The advantage of the late joiner
There are currently 18 companies operating in the life market. Generali belongs to the group of companies joining the market in the past 5 years. However, Ms. Tina Nguyen who has just been appointed to be its CEO sees late joining is also an advantage: “Generali is a relatively new brand in Vietnam, but I believe that with focus on being simpler and customer centric, Generali will continue to differentiate itself and become the choice brand for customers”.
Generali currently serves the insurance needs of over 80,000 individuals and insured members of more than 500 local and foreign companies in major cities and provinces nationwide. Generali plans to launch the products offering superior benefits to customers as well as enhance service quality based on the application of advanced technology. It also plans to expand the operating network with its differentiated general agency model. To support the above-mentioned ambitious business strategy, Generali has just increased its capital to 1,963 billion VND and become one of the companies boasting highest capital in the market.
Although it is not deniable that great effort of the “new players” have made the life market boom in 2015, it is quite different topic as far as changing the ranking, especially joining top 5, is concerned. The “new players” still face many challenges and can hardly turn around overnight. Even for such ambitious company as Generali, it still needs to take a realistic view. Ms. Tina Nguyen shared: ”we are not so ambitious to make Generali brand known by everyone right away or possess the biggest agency force, but our purpose is to ensure that existing customers and potential customers considering our products, will have a positive experience with the Generali brand at all touch points. Our strategy is to develop sustainbly based on customer satisfaction.”
Kỳ Duyên – Tuyết Trang (Thanh Nien newspaper, Apr. 21, 2016)