Insurers to Enter Securities Services Market, Competing Investment Fund
Life insurance companies are preparing to launch new product named "unit link or investment link", which will allow clients to take part in securities investment, triggering a competition with investment funds.
Phung Dac Loc, Secretary General of the Insurers' Association, said that the new products will target middle-class clients and spark hopes for insurers to win more contracts, many of which they have been losing to banks with increased savings interest rates.
Accordingly, as insurers’ monthly preminums total a required amount, they would be provided with opportunities to invest their premiums in bonds, equities or real estate development, an insurance official said.
Insurers said they would give clients a range of choices through different policies. Some companies said even those who pay just VND10 million (US$600) in premiums will be given opportunities to invest.
Insurance companies would provide varies investment portfolio units such as 30 per cent bonds – 50 per cent shares – 20 per cent real estate, or 10 per cent real estate – 80 per cent shares – 10 per cent bonds, according to people familiarity with the matter.
According to experts, this is the best time to launch the insurance product as the country’s listed securities market and over-the-counter (OTC) market have been developing respectively and people now pay more attention to securities investments.
According to a local news paper, a delegation of the Ministry of Finance is visiting China and Malaysia to learn the relevant experiences.
The service is expected to be first made available in the second quarter of this year.
Saigon Marketing
Vietnamese
