What have been the most remarkable events and achievements of Dai-ichi Life Vietnam since its establishment in 2007?
Dai-ichi Life Vietnam was established in January 2007. A year later we officially increased our capital from $25 million to $72 million to strengthen our business efficiency and capture business opportunities in Vietnam. The capital increase upgraded our financial position as the best company in the industry with the highest liquidity, of 1,200 per cent. Despite the well documented difficulties for the economy in 2008, Dai-ichi Life Vietnam recorded excellent results, with total collected premiums of VND585 billion, or 24 per cent more than in 2007 and almost three-times the industry growth rate of 8.6 per cent. This year Dai-ichi Life Vietnam has continued its growth momentum and generated VND508 billion in total premiums in the first nine months. The company now has over 50 offices nationwide with 11,000 well-trained agents serving nearly 500,000 customers.
Dai-ichi Life Vietnam has conducted market research this year and introduced the so called “An Thinh Chu Toan” product. This is a universal life product that is highly regarded within the life insurance market and has the highest investment rate in Vietnam. We are continuing with our research with a view to providing the best products for our customers when taking out a life insurance policy.
The global financial crisis has affected Dai-ichi Life Vietnam. Can you elaborate on this?
Like everyone else, the global financial crisis has had certain effects on Dai-ichi Life Vietnam. But in my opinion the crisis is not a completely negative factor as it also creates opportunities for Dai-ichi Life Vietnam and other life insurers. In times of crisis risks continue to arise, especially risks in finance. Therefore, the financial security of individuals and families becomes more necessary than ever. Insurance products with two core elements - protection and savings accumulation - are what customers need at this time.
At Dai-ichi Life Vietnam we continue to upgrade our service quality through investments in policy management systems, data processing, collection services, etc. With these efforts and commitments we believe that in any economic situation our customers can always believe in us and stay with Dai-ichi Life Vietnam, and new customers will choose us as a financial safeguard for their families in the future.
What are your strengths in surviving and developing in the increasingly competitive life insurance market?
Although we have not been in Vietnam for as long as other life insurers we think that this is an advantage for us as we have learned from the experience of these other life insurers. The most convincing strengths that make us fully confident in our future success in Vietnam are the strong financial back-up and rich experience of more than 100 years of our parent company in Japan. This confidence is even greater given the support from our young, enthusiastic, committed and talented agents and employees at Dai-ichi Life Vietnam.
Our purpose when entering the Vietnamese market was to provide the most suitable products for any lifetime changes of the Vietnamese people. This is in line with our motto “Lifetime Partner”. We also emphasise that customer satisfaction is a competitive advantage and the foundation of our sustainable development here.
What do you think will be the changes in Vietnam’s life insurance market in the future?
Vietnam’s life insurance market is still in the development stage and therefore is still full of potential for development. In a population of more than 80 million people, only 5 per cent have life insurance policies compared with 90 per cent in Japan. Vietnam’s life insurance market has not been fully exploited and still has plenty of room for further investment and development. In addition, living standards and life insurance awareness in Vietnam have improved significantly. This is welcome evidence that the country’s life insurance market is entering a period of sustainable development.
With the recent economic difficulties and the spread of the global financial crisis, Vietnam’s life insurance market and its insurers have no doubt been affected. I think that enterprises will always face certain difficulties and obstacles. Enterprises full of enthusiasm and desire and with a long-term commitment to Vietnam will have investment and development strategies. In confronting the crisis and inflation, Dai-ichi Life Vietnam is cautious but not afraid because we believe in our strong financial strength and our commitment to being a lifetime partner of Vietnam and its people.
In its establishment statement, Dai-ichi Life Vietnam expressed interest not only in life insurance but also in real estate and other financial services. What are Dai-ichi Life Vietnam’s plans in these markets?
Since its establishment Dai-ichi Life Vietnam, with the motto of “Lifetime Partner”, has set targets in a long-term sustainable business plan in Vietnam. As a developing country, Vietnam has great potential for development, with recent strong growth in the finance and investment industries. Many large overseas investment funds have paid special attention to the Vietnamese market and have also implemented many large-scale projects effectively. We have also pencilled in a number of business projects, like setting up a fund management company and entering the property market. Right now we continue to focus on the life insurance market and we will endeavour to have a presence everywhere in the country and serve many customers. - VET