PVI Insurance tops market for average labour productivity

The Reinsurance Department achieved excellent business performance in the first six months of 2024

According to the Top 10 Insurance Companies in Vietnam survey in 2024 released by Vietnam Report JSC on June 14, PVI Insurance has taken the lead in the non-life insurance sector. PVI Insurance has made great strides to become the market's largest non-life insurance company with the highest growth rate in the past years, widening the gap with other non-life insurers in the market.

In 2021, its’ total revenue reached VND10.2 trillion ($401.3 million) with a pre-tax profit of VND790 billion ($31 million). In 2022, total revenue climbed to nearly VND12.8 trillion ($503.6 million) with a pre-tax profit of VND680 billion ($26.8 million). Last year, PVI Insurance posted a total revenue of over VND14.5 trillion ($570.5 million) with a pre-tax profit of VND795 billion ($31.3 million).

PVI Insurance was also honoured by Vietnam Report among the Top 50 Most Profitable Enterprises in Vietnam for three consecutive years (2021, 2022, and 2023).

PVI Insurance also boasted average labour productivity of VND6.14 billion (around $240,000) per capital per year in 2023, with average labour productivity in the insurance business of VND5.1 billion (around $200,000) per capita per year. With an average labour productivity doubling other insurers in the top six, PVI Insurance has a superiorly high labour productivity level compared with many large domestic corporations.

PVI Insurance plans to increase its average labour productivity level to VND7.37 billion ($289,000) per capita per year in 2024. This figure could jump to VND8.47 billion ($333,000) per capita per year if its revenue reaches VND20 trillion ($7.86 million). The average labour productivity in the insurance business is estimated at VND6.81 billion ($267,000) per capita per year.

To achieve this goal, PVI Insurance has implemented a comprehensive development strategy focusing on efficiency. The company has also adopted international standards such as IFRS and AM Best A- in corporate governance to develop the local market and expand into foreign markets.

The company has pioneered opening distribution channels via e-commerce and online sales to reduce the number of direct sales personnel. The insurer is also cooperating with the Vietnam Farmers' Union and Vietnam Social Security to expand sales channels to individual customers, creating a solid retail system.

Another important factor is the flexibility to change its governance model to optimise management work and operations. The company is taking advantage of each unit to improve business efficiency. In addition, its flexible and competitive salary, bonus, and commission policies help retain and recruit talents.

At PVI Insurance, the company evaluates and offers salaries based on employees’ work performance, skills, responsibilities, contributions, and achievements, creating a fair, attractive, and encouraging environment for them to perform to their best.

In addition to building indicators to evaluate company revenue and labour productivity, PVI Insurance has conducted surveys to evaluate employee satisfaction. In 2023, HR Asia magazine's employee assessment survey revealed that PVI Insurance's working environment indexes were all higher than the average market assessment.

PVI Insurance takes lead in non-life insurance market According to the Insurance Association of Vietnam, PVI Insurance accounted for 15.4 per cent of the market share in the first six months of 2021, taking the No.1 position in the non-life insurance market, followed by Bao Viet in second place with 15.3 per cent. This is the second consecutive quarter PVI Insurance takes the lead.

Profit growth setting up PVI Insurance for further gains Despite mounting hardships, many businesses have weathered stormy times to post upbeat performance – and Vietnam’s most profitable non-life insurer, PVI Insurance, is a shining example.

PVI expedites IFRS compliance journey with accelerator solution Insurers worldwide are under intensifying time pressure to implement International Financial Reporting Standard 17 (IFRS17) Insurance Contracts. Facing its own January 2023 compliance deadline for group reporting, Hanoi-based PVI – majority owned by German insurance giant HDI Global – has deployed a fast-track IFRS 17 solution – KPMG IFRS 17 Express – fusing KPMG’s industry acumen and SAS analytics.