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Bao Viet Insurance: Top Things You Need to Know in 2023

Bao Viet Insurance, a beacon of financial security in Vietnam, was established on January 15, 1965. As the first insurance company incorporated in Vietnam, it has a rich history of providing reliable insurance services to the Vietnamese people.

It has a widespread network of more than 188 branches, covering all 63 provinces nationwide. This extensive reach allows Bao Viet Insurance to serve a broad range of customers, from individuals to businesses, providing them with accessible and efficient insurance services.

Bao Viet Insurance has been recognized as one of the top 25 enterprises in the country by the State Government. This recognition is a testament to it’s commitment to excellence and its significant contribution to the Vietnamese economy. 

If you have any questions or want to invest or get insured as an expat or high-net-worth individual, you can email me (advice@adamfayed.com) or use these contact options.

Bao Viet Insurance’s Accreditations and Achievements

In January 2015, on the eve of its 50th anniversary, Bao Viet Insurance was granted the First-Class Labour Medal by the Party and the State. This prestigious award is a recognition of Bao Viet Insurance’s dedication to its work and its significant contributions to the development of the insurance industry in Vietnam.

Quality Management Certifications

Bao Viet Insurance has also been accredited with the quality management ISO 9001:2000 certification in August 2001, and ISO 9001:2008 certification in 2009 by BVQI (UK). These certifications demonstrate Bao Viet Insurance’s commitment to maintaining high-quality management systems, ensuring that their services meet international standards.

Continuous Improvement

Bao Viet Insurance’s accreditations and achievements are not just badges of honor. They are a reflection of the company’s continuous efforts to improve its services and provide the best possible insurance solutions to its customers. Bao Viet Insurance’s commitment to quality and excellence sets it apart in the Vietnamese insurance market.

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Bao Viet Insurance holds a strong position in the Vietnam insurance market, with its brand value exceeding USD267 million, as accredited by Brand Finance (UK).

Stability

Financial Strength

Bao Viet Insurance has demonstrated robust financial strength, with owner equity and total assets of the Bao Viet Group standing at VND19,902 billions and VND128,238 billions respectively as of December 31, 2019. Bao Viet Group has the distinction of being the first State-owned enterprise to successfully attract a foreign strategic partner, with Sumitomo Life Insurance Group (Sumitomo Life) owning a 22.09% stake in the Group.

Future Financial Projections

Looking forward, Bao Viet Group has set ambitious financial targets for the future. By the end of 2025, the group aims to achieve total assets of approximately $10-10.4 billion. To realize this vision, Bao Viet Life Insurance Company, Bao Viet Insurance Corporation, and Bao Viet Fund Management Company have been identified as the core entities. The group projects anticipated annual growth rates of 10-11 per cent for total assets during the 2021-2025 period. Similarly, the group’s consolidated total revenue is estimated to rise to approximately $3.2-3.4 billion by 2025, exhibiting average annual growth rates of 10-11 per cent over the same timeframe. Consolidated net profit after tax is forecast to reach approximately $79-83 million, demonstrating an average annual growth rate of 4-5 per cent from 2021 to 2025.

Brand Value

Bao Viet Insurance holds a strong position in the Vietnam insurance market, with its brand value exceeding USD267 million, as accredited by Brand Finance (UK). This places Bao Viet as the number 1 brand in the Vietnam insurance market.

Bao Viet Insurance’s Services

Bao Viet Insurance, a leading financial-insurance group in Vietnam, provides a comprehensive range of financial services. These services span across various domains, including insurance, banking, fund management, securities, and investments. It made a significant stride in its growth trajectory by getting listed on the Ho Chi Minh City Stock Exchange in June 2009.

Insurance Products

Bao Viet Insurance, the largest Vietnamese insurance company, offers a diverse range of insurance products tailored to meet the needs of Vietnamese individuals and groups. The company provides five levels of cover, enabling customers to access treatment in all private clinics across Vietnam. This flexibility in coverage levels ensures that customers can choose a plan that best suits their healthcare needs and budget.

Health Insurance

Bao Viet Insurance’s health insurance is designed specifically for the group of VIP customers who need healthcare at high-class domestic hospitals in Vietnam such as Viet Phap, Phap Viet. The company has recently centralized medical insurance claims and boasts the largest network of Vietnamese hospitals for insured members, ensuring that their customers have access to the best medical care available.

Property Insurance

In addition to health insurance, Bao Viet Insurance also offers property insurance for companies and factories. This insurance product is designed to protect businesses from financial losses that may arise due to property damage or loss. It’s an essential product for businesses of all sizes, ensuring that they can recover quickly from any unforeseen incidents.

Motor Vehicle and Accident Insurance

It also provides motor vehicle and accident insurance to personal customers. This type of insurance is crucial for anyone who owns a vehicle or is frequently on the road. It provides financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.

Corporate Insurance

For corporate customers, it offers a variety of products including cargo, aviation, oil and gas, motor vehicle, and liability insurance. These products are designed to meet the unique needs of businesses and protect them from various risks associated with their operations.

Life Insurance

Bao Viet Insurance has been offering life insurances since 1996. According to the Ministry of Finance, Bao Viet was the largest life insurer in 2012 with a market share of 23.9%, slightly ahead of Prudential with 22.6%. Bao Viet Life was separated from Bao Viet Insurance in 2004 and offers a variety of life insurance products to meet the diverse needs of its customers.

Other Products and Services

In addition to the insurance products mentioned above, it has diversified into stock market trading, fund management, and real estate. It also has subsidiaries in banking, hotels, and construction, providing a broad range of financial products and services to its customers.

Technological Innovations

Bao Viet Insurance is not just an insurance provider but also an innovator. The company has embraced the power of big data and artificial intelligence (AI) to improve its services. By leveraging these technologies, it has developed a new insurance service that helps users measure the risk of developing lifestyle-related diseases and receive health guidance. This proactive approach to health management is a testament to its commitment to improving the health and well-being of its customers.

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Bao Viet Insurance has diversified into stock market trading, fund management, and real estate.

Partnerships

Bao Viet Insurance has established strategic partnerships to expand its service offerings. The company has partnered with Aetna and Henner, two prominent health insurers, to register their International health products in Vietnam. These partnerships allow Bao Viet Insurance to offer a broader range of insurance products, thereby catering to the diverse needs of its customers.

Market Position

Bao Viet Insurance holds a dominant position in the Vietnamese insurance market. As the largest non-life insurer in the country, it has a significant market share of 21.1%. This dominance is reflected in its gross premium income, which amounts to an impressive EUR 456 million (VND11,681 billions).

Dominance in the Market

Bao Viet Insurance’s market position is not a recent development. The company has consistently maintained its leading position in the non-life insurance market. As of the first half of 2021, Bao Viet Insurance’s revenue was VND4,593 billion, accounting for 15.52% of the market. This consistent performance demonstrates Bao Viet Insurance’s resilience and adaptability in a competitive market.

Competitive Edge

Bao Viet Insurance’s market position is a testament to its competitive edge. The company’s comprehensive range of insurance products, coupled with its commitment to customer service, has enabled it to secure a significant portion of the market. It’s strong financial position also contributes to its competitive advantage, allowing it to offer reliable and secure insurance solutions to its customers.

Customer Service

Bao Viet Insurance places a strong emphasis on customer service. The level of service you receive from it largely depends on the branch and the relationship established by your broker as a wholesaler.

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The company’s comprehensive range of insurance products, coupled with its commitment to customer service, has enabled it to secure a significant portion of the market.

Centralized Medical Insurance Claims

In a move to streamline its operations and improve customer service, it recently centralized its medical insurance claims. This centralization allows for a more efficient and effective claims process, ensuring that customers receive timely and accurate payouts.

Network of Hospitals

Bao Viet Insurance boasts the largest network of Vietnamese hospitals for insured members. This extensive network ensures that customers have access to medical care when they need it, regardless of where they are in the country.

Pricing of Bao Viet Insurance

Bao Viet Insurance has positioned itself competitively in the market with its pricing strategy. As the majority of their products are designed for local markets, they have ensured that their pricing remains competitive. This is crucial in a market like Vietnam, where individuals and corporations show no brand loyalty when it comes to insurance.

For example, Bao Viet’s healthcare insurance, the “InterCare – Classic Package”, covers up to 70% of the total cost, with the insured paying the remaining 30%. This competitive pricing strategy extends to their other products as well, making Bao Viet Insurance an affordable choice for many Vietnamese individuals and corporations.

Competitive Pricing Strategy

Bao Viet Insurance’s pricing strategy is based on the understanding that most of their products are ‘commodities’ made for local markets. They have ensured that their pricing remains competitive to cater to the needs of Vietnamese individuals and corporations.

Understanding the Local Market

It has a deep understanding of the local market. They know that Vietnamese individuals and corporations have no brand loyalty when it comes to insurance. Therefore, they have designed their pricing strategy to be competitive, ensuring they can attract and retain customers.

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Bao Viet Insurance has positioned itself competitively in the market with its pricing strategy. As the majority of their products are designed for local markets, they have ensured that their pricing remains competitive.

Flexibility of Bao Viet Insurance

Bao Viet Insurance, being a state-owned company, has centralization and replication at the heart of its product design. This approach allows them to maintain consistency across their wide range of insurance products and services.

Centralization in Product Design

Centralization is a key aspect of Bao Viet Insurance’s product design. This approach allows them to maintain consistency across their wide range of insurance products and services. It also ensures that all their products meet the same high standards of quality and reliability.

Replication Strategy

Bao Viet Insurance also employs a replication strategy in their product design. This means that they create multiple versions of the same product, each tailored to meet the specific needs of different customer segments. This approach allows them to cater to a wide range of customers, from individuals to large corporations.

Flexibility in Action

Bao Viet Insurance has shown flexibility in their operations. For instance, they have prepared themselves with a proactive and flexible approach to maintain their leading position in the non-life insurance market. They aim to shorten the process, diversify, and offer flexible choices for customers while prioritizing safety overall.

Security of Bao Viet Insurance

Financial Stability

Bao Viet Insurance, as the largest non-life insurer in Vietnam, has a robust financial foundation. The company’s capital, standing at a staggering US$88 million, ensures that it can comfortably handle high-value claims. This financial strength is a testament to its reliability and stability, making it a trustworthy choice for policyholders.

Claims Refund Policy

When it comes to claims refunds, especially for high amounts, Bao Viet Insurance operates strategically. The company’s approach depends significantly on the long-term business relationship between the broker agent and Bao Viet Insurance. This relationship-based approach ensures that the claims process is fair and transparent, providing peace of mind to policyholders.

The Role of Broker Agents

Broker agents play a crucial role in the claims refund process at Bao Viet Insurance. They act as intermediaries between the policyholder and the insurance company, facilitating communication and ensuring that the claims process runs smoothly. The strength of the relationship between the broker agent and it can significantly influence the outcome of high-value claims.

Why Choose Bao Viet Insurance?

Leading Insurance Provider

Bao Viet Insurance has firmly established itself as a leading insurance provider in Vietnam. With its wide range of services, strong financial position, and commitment to customer service, it is a reliable choice for both individuals and businesses seeking insurance coverage in Vietnam.

Bao Viet Insurance

Comprehensive Range of Services

Bao Viet Insurance offers a comprehensive range of financial services, including insurance, banking, fund management, securities, and investments. This wide array of services makes it a one-stop-shop for all your financial needs.

Strong Financial Position

Bao Viet Insurance’s strong financial position, ensures the company’s ability to meet its financial obligations. This financial strength provides assurance to policyholders that their claims will be handled efficiently and effectively.

Commitment to Customer Service

Bao Viet Insurance’s commitment to customer service is evident in its approach to claims refunds. The company values the relationships it has with its broker agents and works closely with them to ensure a smooth and fair claims process. This commitment to customer service makes it a reliable choice for insurance coverage.

In conclusion, Bao Viet Insurance’s robust financial stability, comprehensive range of services, and commitment to customer service make it a leading choice for insurance coverage in Vietnam. Whether you’re an individual seeking personal coverage or a business looking for comprehensive insurance solutions, it has the products and services to meet your needs.

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