Fostering sustainable development in the pandemic

ManH HaI

Despite the Covid-19 pandemic, BIC has reached the milestone of VND400 billion (USD17.6 million) in pre-tax profit for the first time

In 2021, the Covid-19 pandemic with new variants, continued to develop complicatedly with long-lasting negative impacts on the economy in general and Vietnam’s non-life insurance market in particular. The fact that many provinces and cities had to implement social distancing has caused difficulties for production and business activities of enterprises and people’s income. especially, industries closely related to the nonlife insurance sector such as auto, service, tourism, and education… were significantly affected, causing negative impacts on the operations of non-life insurance companies.

According to the General Statistics Office of Vietnam, the market’s nonlife insurance premiums in the first nine month of 2021 only grew by 5 percent over the same period last year. experts forecast that the market’s 2021 growth rate is unlikely to exceed the 10 percent level compared to 2020.

Given the difficulties caused by the pandemic, with the right orientations and effective solutions and relentless efforts, BIC has successfully overcome the Covid-19 “storm” and achieved positive and sustainable results.

PROFIT BEFORE TAx HIT A RECORD FOR THE FIRST TIME

In 2021, the total insurance premiums of BIC alone were estimated at over VND2,800 billion (USD123.3 million), up more than 10 percent compared to the last year. Of which, direct premiums were estimated at VND2,600 billion (USD114.5 million), an increase of more than 12 percent compared to 2020. with the sustainable development orientation, BIC continued to achieve good results and impressive milestones in 2021. The total pre-tax profit in 2021 was estimated at over VND400 billion (USD17.6 million), increasing by more than 10 percent compared to the last year, fulfilling 140 percent of the year’s plan. In particular, in 2021, BIC continued to be profitable in insurance business.

In the context of the complicated developments of the Covid-19 pandemic, BIC’s retail activities in 2021 achieved positive results. In particular, the bancassurance continued to record an impressive growth. The total revenues in 2021 of the channel were estimated at more than VND700 billion (USD30.8 million), growing by 35 percent from 2020. In the last 3 years, the channel’s revenue has seen an annual growth rate of around 70 percent. It can be said that BIDV and BIC are entering into the “golden era” in developing the bancassurance.

This has once again affirmed the right vision and orientation of BIDV’s leadership for insurance activities.

In addition to the good business results, in 2021, BIC left its footprints in other activities. The company was reaffirmed by A.M. Best with credit rating assigned at B++; was honored with many accolades and awards such as Top 10 most prestigious non-life companies in Vietnam; Top 100 strongest brands in Vietnam… In particular, in 2021, the BIC brand was evaluated by Forbes Vietnam at USD10 million, ranking third in Vietnam’s insurance market (including both life and non-life insurance).

TURNING DIFFICULTIES INTO MOTIVATION

In 2022, the Covid-19 pandemic situation in the world and in Vietnam is forecast to continue to be complicated. However, this is also a motivation for BIC to be more determined to improve all aspects of operations, looking forward to conquering challenging goals in the coming year.

In 2022, BIC is set to do its best to accelerate the premium growth through deploying uniform solutions such as strengthening the organizational structure to suit the reality and business orientation; investing in developing new retail products and distribution channels; improving service quality before, during and after sales…BIC will also continue to promote the revenue growth in the bancassurance channel, taking advantage of the network and customer base of banks, while enhancing the expansion of relationship with credit institutions nationwide.

with the motto “Innovation, Creativity, and Sustainable Development”, BIC considers digital transformation as one of the important factors to create breakthroughs in business activities in 2022 and the following years. Specifically, BIC will strongly invest in IT system, strongly digitalizing all aspects of operations, with a focus on products and distribution channels to bring more practical values to the customers as well as fostering its sustainable development.

The logo of BIDV Insurance Corporation seen on a building in Hanoi

2021 marks the 16 years of BIC’s presence in the Vietnam’s insurance market. From the outset as a small company, the company has become one of the leading insurers in terms of market share of direct premiums; among Top 3 insurers with the highest rate of return in the market. BIC has affirmed it as one of the key business pillars and leading units among member companies of BIDV.